Document:

exv10w18

Exhibit 10.18

THE MERIDIAN RESOURCE CORPORATION

TMR EMPLOYEES TRUST WELL BONUS PLAN

ARTICLE I.

PURPOSE

     The Board of Directors of the Company creates this Bonus Plan for personnel of the Company to
be included in the TMR EMPLOYEES TRUST (the “Trust”) intending to advance the best interests of The
Meridian Resource Corporation (the “Company”) by attracting and retaining top quality personnel
through this use of incentive bonuses for selected personnel within the eligible group.

ARTICLE II.

DEFINITIONS

     2.1 “Anniversary Date” means the last day of the fiscal year of the Company.

     2.2 “Bonus” means the right awarded to the Trust to receive a bonus from the Bonus Pool,
pursuant to this Plan, in the amount set out in the Notice of Bonus. The Trust’s Bonus will be
expressed as a percentage of the Bonus Pool, as determined by the Compensation Committee. A Bonus
once granted continues pursuant to this Plan. Bonuses awarded from any given Bonus Pool may not
exceed one hundred percent (100%) of the given Bonus Pool.

     2.3 “Bonus Date” means the last day of each quarter of each fiscal year of the Company.

     2.4 “Bonus Pool” means a pool consisting of a percentage of the Net Profits from a Designated
Well, as determined by the Company, paid by the Company to the Plan. Each Bonus Pool will be the
basis for determining the Bonus to be paid to the Trust. Each Bonus Pool will carry a name, which
will distinguish it from any other Bonus Pool and will include the fiscal year of its designation.
Each Bonus Pool will be separate from all other Bonus Pools. Each Bonus Pool shall only contain
one Designated Well. Each Bonus Pool will continue until such time as the Compensation Committee,
in its sole discretion, determines no further Net Profits will be generated by the Designated Well
for that Bonus Pool or until the Trust terminates, or as otherwise determined herein. Any Bonus
Pool shall be subject to the terms, conditions, and provisions of any agreement theretofore or
thereafter entered into by the Company, which in any way affects the Designated Well, monies or
common stock of the Company.

     2.5 “Chargeable Expenditures” means the total sum of the following expenses, incurred by the
Company and its Internal Working Interest Partners, associated, directly or indirectly, with a
Designated Well:

	 	(i)	 	the severance, production, excise, ad valorem, windfall profits and other taxes
on or measured by production attributable to said Designated Well; plus
	 
	 	(ii)	 	the cost of operating and maintaining a Designated Well (normal lease operating
expenses), exclusive of drilling well overhead rates as provided for in any applicable
joint operating agreement, and exclusive of any costs and expenses

 

 

	 	 	 	associated with establishment or enhancement of production including but not limited
to the costs of drilling, workovers (other than normal lease operating expenses
associated therewith), re-drills, deepening, sidetracking, plugging back, purchasing
and setting surface equipment, and/or the construction of pipeline or plant
facilities; plus

	 	(iii)	 	the fees or other consideration paid by the Company to any third party, other
than an affiliate of the Company, for services in connection with marketing production
of oil and/or gas (and/or components and by products extracted therefrom) from or
attributable to such Designated Well.

     Chargeable Expenditures does not include any of the following:

	 	(i)	 	any and all lease burdens including, but not limited to, landowner royalties,
overriding royalties, net profits interest payments, production payments, financing
arrangements and other similar interests which may burden any Designated Well as a
result of agreements between the Company and any third parties;
	 
	 	(ii)	 	capital expenditures associated with wells, production and marketing
facilities, including, but not limited to, the costs of drilling, workovers (other than
normal lease operating expenses associated therewith), re-drills, deepening,
sidetracking, plugging back, purchasing and setting surface equipment, and/or the
construction of pipeline or plant facilities; and
	 
	 	(iii)	 	the acquisition and maintenance of mineral interest or the geologic,
geophysical and engineering evaluation relative to any Designated Well.

     2.6 “Company” means The Meridian Resource Corporation.

     2.7 “Compensation Committee” means the Committee established by the Board of Directors of the
Company to administer this Plan.

     2.8 “Designated Well” means a well (whether or not operated by the Company) designated by the
Compensation Committee, in its sole discretion, to be included in this Plan. The Company may drill
wells (whether or not operated by the Company) that will not become a Designated Well.

     2.9 “Internal Working Interest Partners” means any and all parties designated as such by the
Company and who hold a cost sharing ownership interest, either actual or beneficial, on a cash
basis by virtue of an agreement between the Company and any such parties in and to any Designated
Well.

     2.10 “Net Profits” means the proceeds received by the Company from the sale of the oil, gas
and minerals (including components and by products extracted therefrom) that are produced, saved
and sold from a Designated Well, free and clear of all costs and expenses of exploration,
development, operation, production, marketing, processing, treating and transportation to the sales
point, LESS Chargeable Expenditures. If Chargeable Expenditures in any calendar month
exceed the proceeds in the same month for a particular well resulting in a net

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loss, such net loss shall be carried forward and applied against the Net Profits of the
succeeding month, or months, for that particular well. The Net Profits shall be subject to the
terms, conditions and provisions of any joint operating agreement or similar agreement at any time
heretofore or hereafter entered into by the Company with any third parties covering any Designated
Well including, but not limited to, provisions requiring forfeiture of interest for
nonparticipation and recoupment of multiple recovery costs. In the event any such provisions of
any third party agreement come into effect the Net Profit payments shall be suspended until such
costs are recovered or such cause for suspension is removed. The Net Profits shall also be subject
to the terms, conditions and provisions of any farmout or other agreements under which the Company
acquires or may acquire its mineral interest in a Designated Well. In the event the interest of
the oil, gas and minerals owned by the Company is or becomes reduced, the Net Profits shall be
proportionately reduced to the proportion thereof, which the working interest owned by the Company
in said Designated Well bears to the entire working interest for said Designated Well.

     2.11 “Notice of Bonus” means the notice that will be issued to the Trust, substantially in the
form attached hereto as Exhibit “A”.

     2.12 “Plan” means this The Meridian Resource Corporation TMR Employees Trust Well Bonus Plan,
as amended from time to time.

ARTICLE III.

ADMINISTRATION

     3.1 Composition and Indemnity of the Compensation Committee. The Compensation
Committee shall be composed of those persons, not less than two, as are appointed by the Board of
Directors of the Company, to serve at its pleasure. The Compensation Committee shall administer and
construe this Plan. No member of the Compensation Committee shall be liable for any act or any
determination made in good faith. The Company shall, to the fullest extent permitted by law,
indemnify and hold each member of the Compensation Committee harmless from any and all claims,
causes of action, damages and expenses (including reasonable attorneys’ fees and expenses) incurred
by the member in connection with or otherwise relating to his service in that capacity.

     3.2 Administration of Plan. Construction by the Compensation Committee of any
provision of this Plan shall be final, conclusive and non-appealable. The Compensation Committee
shall determine, in its sole discretion subject to the provisions of the Plan:

	 	(a)	 	the percentage of the Net Profits that will be paid by the Company to each
Bonus Pool;
	 
	 	(b)	 	the calculation of the Net Profits;
	 
	 	(c)	 	which wells, of the wells the Company drills or acquires or participates in, if
any, will be a Designated Well; and
	 
	 	(d)	 	the terms and conditions, if any, not inconsistent with the terms of this Plan,
that are to be placed upon the award of a Bonus to the Trust or from a Bonus Pool.

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     3.3 Delegation. The Compensation Committee may, in its discretion, delegate one or
more of its duties to an officer or a committee composed of officers of the Company, but may not
delegate its authority to construe this Plan or to make the determinations set out in Section 3.2.

     3.4 Award of Bonus. The Compensation Committee will issue to the Trust a “Notice of
Bonus,” within fifteen (15) working days after the drilling spud date of each Designated Well. The
Notice of Bonus shall set out the determination of the Compensation Committee, for such Bonus Pool,
regarding the matters set out in Section 3.2.

ARTICLE IV.

CALCULATION OF BONUSES

     4.1 Calculation of Benefits Based Upon Bonus Pool. As soon as administratively
possible after each Bonus Date, the Compensation Committee shall calculate the dollar amount of the
Bonus to be paid to the Trust in each Bonus Pool.

     4.2 Calculation of Bonus Pool Based Upon Disposition of Designated Wells for a Bonus
Pool. The Company shall always be entitled to, at any time, dispose of any and all interests
it may hold with respect to any or all Designated Wells. The time, price, terms and conditions of
such disposal will be as the Company may determine. When a Designated Well is sold or otherwise
disposed of, the amount to be paid to the Bonus Pool shall be a percentage of the net proceeds
received by the Company from any such sale or disposition (as determined by the Company), minus a
percentage of the costs incurred by the Company in such sale or disposition (as determined by the
Company) and all taxes, which may be assessed against the Designated Well, because of the sale or
disposition, other than income taxes payable by the Company for its share of said proceeds, if any.

     4.3 Calculation of Bonus Upon Liquidation of Company. The existence of outstanding
Bonus awards will not affect in any way the right or power of the Company to make or authorize any
or all adjustments or recapitalization or other changes in the Company’s capital structure or its
business. Should the Company elect to liquidate or to enter into any transaction in which it is not
the surviving company (a “Transaction”), unless the surviving or successor company has formally
adopted this Plan and agreed to continue it, in lieu of any Bonus otherwise payable or to become
payable at any time in the future under the Plan, each Bonus Pool shall be entitled to a payment of
an amount equal to the aggregate present value of the estimated future Net Profits, which may be
expected to be payable by the Company to each Bonus Pool. Calculation of those estimated future Net
Profits shall be determined by the Company, in its sole discretion, using the Company’s latest
available external engineering estimate or the internal estimate if no external estimate exits, of
proven recoverable reserves, annual production rates, revenues, production costs, value’s
determined (as a part of a Transaction) for any well or any other factors deemed relevant. The
annual values shall then be discounted to a present value as of the date of payment at the rate of
fifteen percent (15%) per annum. Payment of this estimated amount will unconditionally relieve,
discharge and acquit the Company of any further obligation to pay any additional amounts to any
Bonus Pool, or the Trust under this Plan. The Compensation Committee shall then pay to the Trust
the Bonus from each Bonus Pool, as calculated pursuant to the Plan.

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     4.4 Company’s Right to Suspend, Shut-in or Abandon any Designated Well within a Bonus
Pool. The Company retains the unconditional right at any time, in its sole discretion, to
suspend production from, shut-in or abandon any Designated Well, which may be included in any Bonus
Pool.

ARTICLE V.

PAYMENT OF BONUS

     5.1 Time and Method of Payment. The Trust shall be entitled to receive payment of the
Bonus as soon as administratively feasible, but in no event, later than sixty (60) days following
any Bonus Date. Each Bonus shall be paid in cash and/or common stock of the Company, as determined
in the sole discretion of the Compensation Committee. It is contemplated that up to seventy-two
percent (72%) of any payment of a Bonus may be made in the publicly traded stock of the Company. No
interest shall be paid or payable on any Bonus awarded under the Plan. The Company shall be
entitled to deduct from any Bonus paid to the Trust, the sums required by federal, state or local
law to be withheld with respect to the payment of such Bonus. The Company shall not be required to
make any payment until the appropriate withholding is provided for.

     5.2 Length of Period Participant will Receive Benefit. The Trust’s right to receive a
Bonus from a given Bonus Pool shall continue, for as long as each Bonus Pool continues, pursuant to
Section 2.4, unless the Trust forfeits its rights under this Plan. In the event of termination or
dissolution of the Trust, the Company shall suspend payments until the Company has received
documents, satisfactory to the Company’s counsel, evidencing to whom future payments should be
made.

ARTICLE VI.

LIMITATION OF RIGHTS

     Nothing in this Plan shall be construed:

	 	(a)	 	to give any beneficiary of the Trust or the Trust any right to be awarded a
Bonus other than in the sole discretion of the Compensation Committee;
	 
	 	(b)	 	to limit in any way the right of the Company to terminate the Trust or any
beneficiary’s employment with the Company at any time;
	 
	 	(c)	 	to evidence any agreement or understanding, express or implied, that the
Company will employ any beneficiary of the Trust in any particular capacity or for any
particular remuneration;
	 
	 	(d)	 	to give the Trust or any beneficiary of the Trust any right to challenge,
change or overturn any decision of the Compensation Committee, as such decision may be
made in the Compensation Committee’s sole discretion; or
	 
	 	(e)	 	to require or obligate the Company to conduct any drilling, completion or
producing operations regarding any Designated Well.

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ARTICLE VII.

ALIENATION OF BENEFITS

     No benefit provided by this Plan shall be transferable by the Trust, except as provided in
this Plan. No right or benefit under this Plan shall be subject to anticipation, alienation, sale,
assignment, pledge, encumbrance or charge. Any attempt to transfer, anticipate, alienate, sell,
assign, pledge, encumber or charge any right or benefit under this Plan shall be void. No right or
benefit under this Plan shall, in any manner, be liable for or subject to any debts, contracts,
liabilities or torts of the person entitled to the right or benefit. If the Trust becomes bankrupt
or attempts to transfer, anticipate, alienate, assign, pledge, sell, encumber or charge any right
or benefit under this Plan, then the right or benefit shall, in the sole discretion of the
Compensation Committee, cease.

ARTICLE VIII.

AMENDMENT AND TERMINATION OF PLAN

     8.1 Amend or Terminate at Any Time. The Board of Directors of the Company may, in its
sole discretion, amend or terminate this Plan at any time, subject to Section 8.2 hereof.

     8.2 No Retroactive Effect Upon Awarded Bonuses. Any amendment or termination of this
Plan will not affect the rights of the Trust to a Bonus, which has already been awarded under this
Plan prior to the time of the amendment or the termination.

     8.3 Automatic Termination. If at any time the appropriate governmental unit
determines that the Plan is not a bonus program, but instead a pension or welfare benefit plan
within the meaning of the applicable provisions of the Employee Retirement Income Security Act of
1974 or similar statute, rule or order, this Plan shall automatically terminate as of the date the
Company receives notice of that determination.

ARTICLE IX.

RELIANCE UPON GENERAL CREDIT OF THE COMPANY

     It is specifically recognized that this Plan is only a general corporate commitment and that
the Trust must rely upon the general credit of the Company for the fulfillment of its obligations
under the Plan. Though the Company may hold a Designated Well, which has been designated for a
given Bonus Pool, neither the Plan nor the Bonus Pool creates any claim, lien, encumbrance, right,
title or other interest of any kind whatsoever in the Trust in any well, property or portion of a
property containing such well or in the Net Profits derived from it. The designation of a well is
only a part of the procedure used in calculating a Bonus due the Trust under the Plan and provides
no legal entitlement to those specific assets. No specific assets of the Company have been set
aside or pledged in any way for the performance of the Company’s duties under this Plan nor will
any future assets be pledged or set aside in any manner to assure the performance of the Company
under this Plan. However, the Company may, but is not required to create a rabbi trust in
connection with this Plan, but only if it has received a ruling from the Internal Revenue Service
that the creation of that trust does not cause this Plan to be “funded” as that term is generally
used in the Employee Retirement Income Security Act. Thus,

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the rights of the Trust and any persons claiming under the Trust shall be those solely of
unsecured creditors of the Company.

ARTICLE X.

GOVERNING LAW

     This Plan shall be governed by the laws of the State of Texas. All of the Parties irrevocably
consents to the exclusive jurisdiction of any Texas or United States Federal Court sitting in
Harris County over any action or proceeding arising out of this Plan. All Parties waive any
objections to venue in Texas and any objection to any action or proceeding in Texas on the basis of
forum non conveniens.

ARTICLE XI.

CONFIDENTIALITY

     11.1 Any information, data or knowledge which is related directly or indirectly to, any
Designated Well, the Bonus Pool, any property or portion of any property containing any Designated
Well, or any geological prospect containing a Designated Well, is information the Company considers
secret, proprietary and confidential (the “Confidential Information”). By acceptance of a Bonus,
the Trust agrees and any beneficiary of the Trust that for as long as the Trust is receiving a
Bonus and for a period of twelve (12) months after receipt of the final Bonus, the Trust and any
beneficiary of the Trust will keep all Confidential Information confidential and will not (i)
disclose or permit the disclosure of any Confidential Information; and/or (ii) solicit to employ or
attempt to employ or divert any employee of the Company or any of its affiliates with knowledge of
Confidential Information. The Confidential Information will not include information in the public
domain or generally known by the public. In the event the Trust and any beneficiary of the Trust
breaches this Section 11.1 the Company, in addition to any other remedy to which it may be entitled
at law or in equity, shall be entitled to terminate its obligation to make any further payments of
any Bonus and to an injunction or injunctions (without the posting of any bond) to prevent breaches
or threatened breaches of this Plan and/or to compel specific performance of this Plan and the
Trust will not oppose the gravity of such relief including all costs and expenses, including
attorney’s fees.

ARTICLE XII.

EFFECTIVE DATE

     This Plan shall become operative and effective on November 5, 1997.

ARTICLE XIII.

MISCELLANEOUS

     13.1 The article headings used in this Plan are inserted for convenience only and shall be
disregarded in construing this Plan.

     13.2 If any portion of this Plan is rendered invalid by a court of proper jurisdiction, the
balance of this Plan shall continue in full force and effect.

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     13.3 To be effective, any notice, request or other communication permitted or required to be
given by either party hereunder shall be given in writing and may be effected by placing the same
in the United States mail, certified with return receipt requested, postage prepaid, by delivery by
courier service, by prepaid telegram or by facsimile transmission, and shall be deemed given the
date and hour three (3) days following the date and hour at which the same is deposited with a
clerk of the United States Postal Service, or when so delivered by courier service or personally
delivered or by prepaid telegram filed with a telegraph company or on completion and confirmation
of a facsimile transmission, addressed to the respective party to be notified.

     13.4 This Plan shall be binding upon the parties hereto and their respective heirs, executors
and successors.

     13.5 Neither the adoption and existence of the Plan, nor any payment, contribution or other
participation by the Company in the Plan, shall be considered a contract between the Trust or any
Trust beneficiary and the Company, or consideration for, or inducement with respect to, any Trust
beneficiary’s continued employment by the Company.

     13.6 The Trust represents to the Company and agrees that it: (i) was specifically advised to
and fully understands its rights to discuss all aspects of this Plan with an attorney, (ii) has to
the extent it desires, availed itself of these rights, (iii) has carefully read and fully
understands the provisions of the Plan, and (iv) is responsible for any federal and/or state income
or other tax liability that may result as a consequence of the receipt of any Bonus.

     13.7 This Plan sets forth the entire agreement between the Company and the Trust and fully
supersedes all prior written and oral agreements, understandings and representations between the
parties including but not limited to those concerning the Trust rights to receive any monies from
the Company from or in respect of any Designated Well or from or in respect of any Company
prospect.

THE MERIDIAN RESOURCE CORPORATION

	 	 	 	 	 

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

	 	 

JOSEPH A. REEVES, JR., Chairman
	 	 

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EXHIBIT “A”

NOTICE OF BONUS

	 	 	 	 	 

	Name of Bonus Pool:

	 	(year)	 	 
	 

	 	 
	 	 
	Designated Well:
	 	 	 	 
	 

	 	 
	 	 
	Bonus Percentage:
	 	 	 	 
	 

	 	 
	 	 
	Date of bonus:
	 	 	 	 
	 

	 	 
	 	 

	 	 	 	 	 

	COMPENSATION COMMITTEE	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

JOSEPH A. REEVES, JR., Director
	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

MICHAEL J. MAYELL, Director
	 	 

9exv10w19

Exhibit 10.19

AMENDMENT TO

THE MERIDIAN RESOURCE CORPORATION

TMR EMPLOYEES TRUST WELL BONUS PLAN

     WHEREAS, Alta Mesa Acquisition Sub, LLC (the “Company”) has adopted and assumed sponsorship of
The Meridian Resource Corporation TMR Employees Trust Well Bonus Plan (the “Plan”), effective as of
the Effective Time (as defined in the Agreement and Plan of Merger dated as of December 22, 2009,
as amended by a First Amendment to Agreement and Plan of Merger dated as of April 7, 2010); and

     WHEREAS, as of the Effective Time, the Company has the right under Article VIII of the Plan to
amend the Plan at any time and from time to time; and

     WHEREAS, the Company has determined that the Plan should be amended to reflect the Company’s
adoption and assumption of the Plan; and

     WHEREAS, the Company has determined that the Plan should also be amended so that (1) any Bonus
awarded to the TMR Employees Trust (the “Trust”) may not be increased and no new Bonus may be
awarded under the Plan to the Trust (or to any other person or entity) on or after the Effective
Time, and (2) no future wells may be designated as Designated Wells (as defined in the Plan) on or
after the Effective Time;

     NOW, THEREFORE, the Plan is hereby amended as follows:

     1. Effective as of the Effective Time, the Plan is amended to replace all references to “The
Meridian Resource Corporation” with “Alta Mesa Acquisition Sub, LLC.”

     2. Effective as of the Effective Time, Section 2.8 of the Plan (the definition of “Bonus”) is
hereby amended by deleting the text of said definition in its entirety and substituting, in lieu
thereof, the following:

     2.2 “Bonus” means the right awarded to the Trust to receive a bonus from the
Bonus Pool, pursuant to this Plan, in the amount set out in the Notice of Bonus.
The Trust’s Bonus will be expressed as a percentage of the Bonus Pool, as determined
by the Compensation Committee. A Bonus once granted continues pursuant to this
Plan. Bonuses awarded from any given Bonus Pool may not exceed one hundred percent
(100%) of the given Bonus Pool. Notwithstanding anything herein to the contrary,
the Bonus awarded to the Trust may not be increased and no new Bonus may be awarded
to the Trust (or to any other person or entity) on or after the Effective Time.

 

 

     3. Effective as of the Effective Time, Section 2.8 of the Plan (the definition of “Designated
Well”) is hereby amended by deleting the text of said definition in its entirety and substituting,
in lieu thereof, the following:

     2.8 “Designated Well” means a well (whether or not operated by the Company)
that is designated by the Compensation Committee, in its sole discretion, to be
included in this Plan. The Company may drill wells (whether or not operated by the
Company) that will not become a Designated Well. Notwithstanding anything herein to
the contrary, no additional wells may be designated by the Compensation Committee as
Designated Wells under the Plan on or after the Effective Time.

     4. Effective as of the Effective Time, the Plan is hereby amended by adding the following new
Section 2.8A:

     2.8A “Effective Time” means “Effective Time,” as defined in the Agreement and
Plan of Merger dated as of December 22, 2009, by and between the Company, Alta Mesa
Holdings, LP, and The Meridian Resource Corporation, as amended by a First Amendment
to Agreement and Plan of Merger dated as of April 7, 2010.

     5. Effective as of the Effective Time, Section 3.2 of the Plan is hereby amended by adding
the following new sentence to the end of said Section:

     Notwithstanding anything herein to the contrary, as of the Effective Time, the
Compensation Committee may not award any new Bonuses to the Trust (or to any other
person or entity), or increase the amount of a Bonus previously awarded under the
Plan.

     As amended hereby, the Plan is ratified and confirmed.

     IN
WITNESS WHEREOF, this Amendment has been executed on this
13th day of May, 2010, to be
effective as of the Effective Time.

	 	 	 	 	 
	 	ALTA MESA ACQUSITION SUB, LLC

 	 
	 	By:  	Alta Mesa Holdings, LP
 	 
	 	Its: 	 Sole Member 	 
	 	 	 
	 	By:  	                                              Alta Mesa GP, LLC
 	 
	 	Its: 	 General Partner 	 
	 	 	 
	 	By:  	/s/
Harlan H. Chappelle 
 	 
	 	 	Name:  	Harlan H. Chappelle 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

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