Document:

exv10w12

Exhibit
10.12

AMENDED AND RESTATED PROMISSORY NOTE

	 	 	 	 	 
	$178,278.21
	 	Houston, Texas
	 	June 30, 2010

     FOR VALUE RECEIVED, the undersigned, PETRO ACQUISITIONS, LP, a Texas limited partnership
(“Maker”), hereby unconditionally promises to pay to the order of MICHAEL E. ELLIS, a Texas
resident (“Payee”), the principal sum of ONE HUNDRED SEVENTY-EIGHT THOUSAND, TWO HUNDRED
SEVENTY-EIGHT AND 21/100 DOLLARS ($178,278.21) in lawful money of the United States of America,
together with interest on the unpaid principal balance from day to day remaining, computed from the
date hereof. Interest shall be paid at the agreed rate of ten percent (10.00%) per annum. This
Note, including all principal and accrued but unpaid interest is due and payable on December 31,
2018. All past due principal and interest shall bear interest at the highest lawful rate per annum
from maturity until paid. Interest has accrued on the principal amount of $178,278.21 since the
execution of the 2004 Note (defined below) as reflected in the books of Payee.

     This Note is executed in assumption, renewal and extension but not discharge or novation of
(a) that certain promissory note executed by Petro Acquisitions, Inc. in favor of Payee, dated as
of August 20, 2004, in the original principal amount of $178,278.21 (the “2004 Note”), (b) that
certain promissory note executed by Maker in favor of Payee, dated as of October 1, 2005, in the
original principal amount of $178,278.21 (the “2005 Note”), (c) that certain promissory note
executed by Maker in favor of Payee, dated as of February 26, 2007, in the original principal
amount of $178,278.21 (the “2007 Note”) and (d) that certain promissory note executed by Maker,
dated as of May 13, 2010, in favor of Payee in the original principal amount of $178,278.21 (the
“2010 Note”).

     Maker’s obligations under this Note are subordinate and inferior to (a) all the “Obligations”
of Maker as defined in the Sixth Amended and Restated Credit Agreement dated as of May 13, 2010
(the “First Lien Credit Agreement”), as such agreement has been and may be modified, amended or
restated from time to time and no principal or interest payments may be made on this Note without
the unanimous approval of the “Lenders” as defined in the First Lien Credit Agreement (b) all
“Obligations” of Maker as defined in the Subordinated Credit Agreement dated as of November 13,
2008 (the “Second Lien Credit Agreement”), as such has been and may be modified, amended and
restated from time to time and no principal or interest payments may be made on this Note without
the unanimous approval of the “Lenders” as defined in the Second Lien Credit Agreement, (c) all
rights of Alta Mesa Investment Holdings, Inc. (“Investor”) to receive distributions under the First
Amended and Restated Agreement of Limited Partnership of Alta Mesa Holdings, LP, dated as of
September 1, 2006, as such agreement has been and may be modified, amended or restated from time to
time and subject to the terms of that certain Source of Payment, Limited Recourse and Subordination
Agreement by and among Alta Mesa Resources, LP, Galveston Bay Resources, LP, Maker, Alta Mesa
Holdings, GP, LLC, Galveston Bay Resources Holdings, LP, Petro Acquisition Holdings, LP, Petro
Operating Company Holdings, Inc., Harlan H. Chappelle, Dale Hayes and Investor and (d) all
obligations of Maker in connection with any Senior Unsecured Notes (as defined in the First Lien
Credit Agreement) issued or guaranteed by Maker or its affiliates and no principal or

 

 

interest payments may be made on this Note until such Senior Unsecured Notes have been paid in
full. By acceptance of this Note, Payee agrees to be bound by the terms of such subordination and
shall not accept any payments under this Note from Maker in violation thereof.

     Subject to the foregoing subordination agreements, this Note may be prepaid in whole or in
part at any time without penalty. If this Note is placed in the hands of an attorney for
collection or is collected by suit or through the probate or bankruptcy courts, then Maker shall
additionally pay the reasonable attorney’s fees and cost of collection of the holder thereof. Maker
and all endorsers and guarantors hereof, if any, and all others who may become liable on or for all
or any part of the obligations evidenced hereby, severally waive presentment for payment, protest,
notice of protest, and notice of non-payment hereof and to the release of any person liable hereon
upon any terms deemed adequate by the holder hereof, in his sole discretion. Any such renewal or
extension hereof or the release of any person liable hereon may be made without notice to any of
said parties and without affecting their liability.

	 	 	 	 	 
	 
	 	PETRO ACQUISITIONS, LP,

a Texas limited partnership

 	 
	 	By:  	Alta Mesa GP, LLC, its general partner
 	 
	 	 	 	 
	 	 	 
	 	By:  	/s/
Michael A. McCabe 	 
	 	 	Michael A. McCabe 	 
	 	 	Chief Financial Officerexv10w13

Exhibit 10.13

THE
MERIDIAN RESOURCE &
 EXPLORATION LLC

CHANGE IN CONTROL SEVERANCE PLAN

AND SUMMARY PLAN DESCRIPTION

(As Amended and Restated Effective as of May 14, 2010)

 

 

THE MERIDIAN RESOURCE & EXPLORATION LLC

CHANGE IN CONTROL SEVERANCE PLAN

AND SUMMARY PLAN DESCRIPTION

(As Amended and Restated Effective May 14, 2010)

     WHEREAS, The Meridian Resource & Exploration LLC, a limited liability company that is
organized and existing under the laws of the State of Delaware (“TMRX”), recognizes that one of its
most valuable assets consists of its employees and consultants; and

     WHEREAS, TMRX previously adopted The Meridian Resource & Exploration LLC Change in Control
Severance Plan (the “Plan”), effective as of December 15, 2008, to provide severance benefits in
the event that the employment or affiliation relationship of certain service providers is
involuntarily terminated in conjunction with a Change in Control (as defined in the Plan); and

     WHEREAS, TMRX desires to amend and restate the Plan to comply with ERISA and to clarify
certain provisions therein; and intending thereby to provide a continuing program of benefits
without a gap or lapse in coverage;

     NOW, THEREFORE, the Plan is hereby amended and restated in its entirety, with no interruption
or gap in coverage, effective as of May 14, 2010, unless otherwise specified herein:

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TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	ARTICLE I ESTABLISHMENT AND OBJECTIVE	 	 	1	 
	 
	 	1.1	 	Establishment	 	 	1	 
	 
	 	1.2	 	Objective	 	 	1	 
	ARTICLE II DEFINITIONS AND CONSTRUCTION	 	 	1	 
	 
	 	2.1	 	Capitalized Terms	 	 	1	 
	 
	 	2.2	 	Number and Gender	 	 	8	 
	 
	 	2.3	 	Headings	 	 	8	 
	 
	 	2.4	 	Construction and Interpretation	 	 	8	 
	ARTICLE III ELIGIBILITY	 	 	8	 
	ARTICLE IV BENEFITS	 	 	9	 
	 
	 	4.1	 	Equity Based Compensation	 	 	9	 
	 
	 	4.2	 	Benefits Following Termination of Employment or Affiliation Relationship	 	 	9	 
	 
	 	4.3	 	Legal Fees	 	 	10	 
	ARTICLE V TIME OF BENEFITS PAYMENTS	 	 	11	 
	ARTICLE VI TERMINATION PROCEDURES AND COMPENSATION DURING DISPUTE	 	 	11	 
	 
	 	6.1	 	Notice of Termination	 	 	11	 
	 
	 	6.2	 	Termination Date	 	 	11	 
	 
	 	6.3	 	Dispute Concerning Termination	 	 	11	 
	ARTICLE VII WITHHOLDING	 	 	12	 
	ARTICLE VIII DEATH OF PARTICIPANT	 	 	12	 
	ARTICLE IX AMENDMENT AND TERMINATION	 	 	12	 
	ARTICLE X ADOPTION OF PLAN BY AFFILIATES	 	 	12	 
	ARTICLE XI MISCELLANEOUS	 	 	13	 
	 
	 	11.1	 	Plan Not an Employment Contract	 	 	13	 
	 
	 	11.2	 	Alienation Prohibited	 	 	13	 
	 
	 	11.3	 	Severability	 	 	13	 
	 
	 	11.4	 	Binding Effect	 	 	13	 
	 
	 	11.5	 	Other Amounts Due	 	 	13	 
	 
	 	11.6	 	Notices	 	 	14	 
	 
	 	11.7	 	Governing Law	 	 	14	 
	ARTICLE XII CLAIMS PROCEDURES	 	 	14	 
	 
	 	12.1	 	Notice of Claim	 	 	14	 
	 
	 	12.2	 	Claims Review Procedure	 	 	15	 
	 
	 	12.3	 	Exhaustion of Administrative Remedies	 	 	15	 
	ARTICLE XIII PLAN ADMINISTRATION	 	 	16	 
	 
	 	13.1	 	Allocation of Authority	 	 	16	 

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	 	 	 	 	 	 	Page	 
	 
	 	13.2	 	Powers and Duties of the Plan Administrator	 	 	16	 
	 
	 	13.3	 	Delegation by the Plan Administrator	 	 	17	 
	APPENDIX A ERISA INFORMATION	 	 	A-1	 
	APPENDIX B YOUR ERISA RIGHTS	 	 	B-1	 

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THE MERIDIAN RESOURCE & EXPLORATION LLC

CHANGE IN CONTROL SEVERANCE PLAN

AND SUMMARY PLAN DESCRIPTION

ARTICLE I

ESTABLISHMENT AND OBJECTIVE

     1.1 Establishment. The Meridian Resource & Exploration LLC, a Delaware limited
liability company (“TMRX” or the “Company”), hereby amends and restates the “The Meridian Resource
& Exploration LLC Change in Control Severance Plan” effective as of May 14, 2010 (the “Plan”).

     1.2 Objective. The Plan is designed to attract and retain certain designated
Employees and Consultants of the Company and its Affiliates, and to reward such Employees and
Consultants by providing replacement income and certain benefits following a Change in Control.

ARTICLE II

DEFINITIONS AND CONSTRUCTION

     2.1 Capitalized Terms. Whenever used in the Plan, the following capitalized terms in
this Section 2.1 shall have the meanings set forth below:

     “Affiliate” means any entity which is a member of (i) the same controlled group of
corporations within the meaning of section 414(b) of the Code with TMRC or TMRX, (ii) a trade or
business (whether or not incorporated) which is under common control (within the meaning of section
414(c) of the Code) with TMRC or TMRX or (iii) an affiliated service group (within the meaning of
section 414(m) of the Code) with TMRC or TMRX.

     “Annual Incentive Plan” means The Meridian Resource & Exploration LLC Annual Incentive
Compensation Plan, as it may be amended from time to time,

     “Applicable Factor” means the applicable factor specified in the Participant’s Notice of
Participation not in excess of 1.5, 1.0, and .6 for a Level One Participant, a Level Two
Participant, and a Level Three Participant, respectively.

     “Applicable Period” the number of months specified in the Participant’s Notice of
Participation, but not in excess of 18, 12, and 6 for a Level One Participant, a Level Two
Participant, and a Level Three Participant, respectively.

     “Assets” means assets of any kind owned by TMRC or TMRX including, but not limited to,
securities of TMRX’s parent or direct and indirect subsidiaries and Affiliates.

     “Base Compensation” means a Participant’s base salary or wages from the Company (as defined in
section 3401(a) of the Code for purposes of federal income tax withholding) or net earnings from
self-employment from the Company (as defined in section 1402(a) of the Code) from the Company,
modified by including any portion thereof that such Participant could have received in cash in lieu
of any elective deferrals made by the Participant pursuant to a

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nonqualified deferred compensation arrangement or pursuant to a qualified cash or deferred
arrangement described in section 401(k) of the Code and any elective contributions under a
cafeteria plan described in section 125 of the Code, and modified further by excluding any bonus,
incentive compensation (including but not limited to equity-based compensation), commissions,
expense reimbursements or other expense allowances, fringe benefits (cash and noncash), moving
expenses, deferred compensation (other than elective deferrals by the Participant under a qualified
cash or deferred arrangement described in section 401(k) of the Code or a nonqualified deferred
compensation arrangement that are expressly included in “Base Compensation” under the foregoing
provisions of this definition), welfare benefits as defined in ERISA, overtime pay, special
performance compensation amounts and severance compensation.

     “Beneficial Owner” or “Beneficial Ownership” shall have the meaning ascribed to those terms in
Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

     “Board” means the Board of Managers of TMRX or the Sole Manager of TMRX, as applicable, or any
other equivalent governing body of TMRX.

     “Cause” means (i) the willful and continued failure by the Participant to substantially
perform the Participant’s duties with the Company (other than any such failure resulting from the
Participant’s incapacity due to physical or mental illness) after a written demand for substantial
performance is delivered to the Participant by the Board (or by a delegate appointed by the Board),
which demand specifically identifies the manner in which the Board believes that the Participant
has not substantially performed the Participant’s duties, or (ii) the willful engaging by the
Participant in conduct which is demonstrably and materially injurious to the Company or any of its
Affiliates, monetarily or otherwise. For purposes of Sections (i) and (ii) of this
definition, (A) no act, or failure to act, on the Participant’s part shall be deemed “willful” if
done, or omitted to be done, by the Participant in good faith and with reasonable belief that the
act, or failure to act, was in the best interest of the Company and (B) in the event of a dispute
concerning the application of this provision, no claim by the Company that Cause exists shall be
given effect unless the Company establishes to the satisfaction of the Board that Cause exists.

     “Change in Control” means the occurrence of any of the following events:

     (a) the consummation of a Merger of TMRC or an Affiliate of TMRC with another Entity,
unless the individuals and Entities who were the Beneficial Owners of the Voting Securities
of TMRC outstanding immediately prior to such Merger own, directly or indirectly, more than
70 percent of the combined voting power of the Voting Securities of any of TMRC, the
surviving Entity or the parent of the surviving Entity outstanding immediately after such
Merger;

     (b) any Person, other than a Specified Owner, becomes a Beneficial Owner, directly or
indirectly, of securities of TMRC representing 30 percent or more of the combined voting
power of TMRC’s then outstanding Voting Securities; (c) a sale, transfer, lease or other
disposition of all or substantially all of TMRC or TMRX’s Assets is consummated (an “Asset
Sale”), unless:

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     (1) the individuals and Entities who were the Beneficial Owners of the Voting
Securities of TMRC or TMRX immediately prior to such Asset Sale own, directly or
indirectly, more than 70 percent of the combined voting power of the Voting
Securities of the Entity that acquires such Assets in such Asset Sale or its parent
immediately after such Asset Sale in substantially the same proportions as their
ownership of TMRC or TMRX’s Voting Securities immediately prior to such Asset Sale;
or

     (2) the individuals who comprise the Board immediately prior to such Asset Sale
constitute a majority of the board of directors or other governing body of either
the Entity that acquired such Assets in such Asset Sale or its parent (or a majority
plus one member where such board or other governing body is comprised of an odd
number of directors); or

     (c) the individuals who are Incumbent Directors cease for any reason to constitute a
majority of the members of the Board of TMRC; or

     (d) The stockholders of TMRC or TMRX approve a plan of complete liquidation or
dissolution of TMRC or TMRX.

     “Code” means the Internal Revenue Code of 1986, as amended, or any successor act.

     “Committee” means one or more individuals as may be appointed by the Board to serve as the
Committee until such time as removed or replaced by the Board in its discretion; provided, however,
any Employee shall be automatically removed as a Committee member upon his termination of
Employment.

     “Company” means TMRX (or a successor in interest to TMRX or its successor) or an Affiliate
that adopts the Plan pursuant to the provisions of Article X.

     “Consultant” means an individual who (a) performs significant and valuable services for the
Company or its Affiliates, as determined by the Board, but is not an Employee, and (b) has been
designated by the Board as a Consultant hereunder for purposes of participation in this Plan.

     “Disability” means the Participant’s incapacity due to physical or mental illness that has
caused the Participant to be absent from full-time performance of his duties with the Company for a
period of six (6) consecutive months.

     “Effective Date” means December 15, 2008, the date as of which the Plan was originally
adopted.

     “Eligible Individual” means an Employee who is not the Chief Executive Officer or President
and Chief Operating Officer of TMRC or TMRX, or a member of the Board of TMRC. “Eligible
Individual” also means a Consultant, as so designated by the Board, who is not a member of the
Board of TMRC.

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     “Employee” means any individual who is employed by an Employer and classified as an employee
on its payroll records.

     “Employer” means TMRX or any of its Affiliates.

     “Employment” means the Employee is in employment service with an Employer and classified as an
employee on the Employer’s payroll records. A leave of absence that has been approved by the
Employer, or is required by applicable law, shall not be deemed a termination of Employment for the
purposes of the Plan. The term “Employment”, as used herein with respect to a Consultant, means
that the Consultant is currently serving under a consulting arrangement with the Company as
determined by the Board.

     “Entity” means any corporation, partnership, association, joint-stock company, limited
liability company, trust, unincorporated organization or other business entity.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any
successor act.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor act.

     “Expiration Date” shall have the meaning specified in the definition of the “Term of the
Plan”.

     “Good Reason” for termination by the Participant of his Employment means the occurrence
(without the Participant’s express written consent) after any Change in Control, of any one of the
following acts by the Company, or failures by the Company to act, as determined by the Committee as
of the termination date, unless, in the case of any act or failure to act described in paragraph
(a) below, such act or failure to act is corrected prior to the effective date of the Participant’s
termination for Good Reason:

     (a) the assignment to the Participant of any duties or responsibilities which are
substantially diminished as compared to the Participant’s duties and responsibilities
immediately prior to a Change in Control or a material change in the Participant’s reporting
responsibilities, titles or offices as an Employee or Consultant, as applicable, and as in
effect immediately prior to the Change in Control;

     (b) a reduction by the Company in the sum of the amount of the Participant’s annual
Base Compensation and the amount of the Participant’s target bonus opportunity under the
Annual Incentive Plan as in effect immediately prior to a Change in Control;

     (c) only with respect to an Employee who is a Participant, the relocation of the
Participant’s principal place of Employment location for the Company outside of a 30-mile
radius from the Participant’s principal place of Employment immediately prior to the Change
in Control or the Company requiring the Participant to be based anywhere other than such
principal place of Employment (or permitted relocation thereof) except for required travel
on the Company’s business to an extent substantially consistent with the Participant’s
business travel obligations immediately prior to a Change in Control;

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     (d) only with respect to an Employee who is a Participant, a material reduction in the
employee benefits plans provided to the Participant immediately prior to the Change in
Control; or

     (e) any purported termination of the Participant’s Employment which is not effected
pursuant to a notice of termination satisfying the requirements of Section 6.1
hereof.

     The Participant’s right to terminate his Employment for Good Reason shall not be affected by
the Participant’s incapacity due to physical or mental illness. The Participant’s continued
Employment shall not constitute consent to, or a waiver of any rights with respect to, any act or
failure to act constituting Good Reason hereunder.

     For purposes of any determination regarding the existence of Good Reason, any claim by the
Participant that Good Reason exists shall be presumed to be correct unless the Company establishes
to the satisfaction of the Committee that Good Reason does not exist. The Committee’s
determination regarding the existence of Good Reason shall be conclusive and binding upon all
parties unless the Committee’s determination is arbitrary and capricious.

     “Highest Base Compensation” means the Participant’s annualized Base Compensation in effect
immediately prior to (1) a Change in Control, (2) the first event or circumstance constituting Good
Reason, or (3) the Participant’s Termination of Employment, whichever is the greatest amount.

     “Incumbent Director” means —

     (a) a member of the Board of TMRC on the Effective Date; or

     (b) an individual:

     (1) who becomes a member of the Board of TMRC after the Effective Date;

     (2) whose appointment or election by the Board of TMRC or nomination for
election by TMRC’s stockholders is approved or recommended by a vote of at least
two-thirds (2/3) of the then serving Incumbent Directors (as defined herein); and

     (3) whose initial assumption of service on the Board of TMRC is not in
connection with an actual or threatened election contest.

     “Level One Participant” means an Eligible Individual who is classified by the Committee as a
Level One Participant.

     “Level Two Participant” means an Eligible Individual who is classified by the Committee as a
Level Two Participant.

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     “Level Three Participant” means an Eligible Individual who is classified by the Committee as a
Level Three Participant.

     “Merger” means a merger, consolidation or similar transaction.

     “Notice of Participation” has the meaning specified in Article III.

     “Participant” means an individual who is eligible to participate in the Plan under the
provisions of Article III.

     “Person” shall have the meaning ascribed to the term in Section 3(a)(9) of the Exchange Act
and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d)
thereof, except that the term shall not include TMRC, TMRX, the Company or any of their Affiliates,
(b) a trustee or other fiduciary holding TMRC or TMRX securities under an employee benefit plan of
the Company or any of its Affiliates, (c) an underwriter temporarily holding securities pursuant to
an offering of those securities or (d) a corporation owned, directly or indirectly, by the
stockholders of TMRC or TMRX in substantially the same proportions as their ownership of stock of
the Company.

     “Plan” means The Meridian Resource & Exploration LLC Change in Control Severance Plan, as it
may be amended from time to time.

     “Plan Administrator” means the administrator of the Plan for purposes of ERISA Section
3(16)(A). The Plan Administrator is TMRX (or any successor in interest to TMRX).

     “Plan Year” means the year beginning May 1 and ending April 30. The first Plan Year of the
Plan was a short Plan Year from December 15, 2008 to April 30, 2009.

     “Renewal Date” shall have the meaning specified in the definition of the “Term of the Plan.”

     “Section 409A” means section 409A of the Code and the Department of Treasury rules and
regulations issued thereunder.

     “Separation From Service” has the meaning ascribed to that term in Section 409A.

     “Specified Employee” means a person who is, as of the date of the person’s Separation From
Service, a “specified employee” within the meaning of Section 409A.

     “Specified Owner” means any of the following:

     (a) TMRC or an Affiliate of TMRC;

     (b) an employee benefit plan (or related trust) sponsored or maintained by TMRC or TMRX
or any Affiliate of TMRC or TMRX;

     (c) a Person that becomes a Beneficial Owner of TMRC’s or TMRX’s outstanding Voting
Securities representing 50 percent or more of the combined voting

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power of TMRC’s or TMRX’s then outstanding Voting Securities as a result of the
acquisition of securities directly from TMRC and/or its Affiliates and/or Joseph Reeves
and/or Michael Mayell;

     (d) Joseph Reeves or Michael Mayell; or

     (e) a Person that becomes a Beneficial Owner of TMRC’s or TMRX’s outstanding Voting
Securities representing 50 percent or more of the combined voting power of TMRC’s or TMRX’s
then outstanding Voting Securities as a result of a Merger if the individuals and Entities
who were the Beneficial Owners of the Voting Securities of TMRC or TMRX outstanding
immediately prior to such Merger own, directly or indirectly, more than 70 percent of the
combined voting power of the Voting Securities of any of TMRC or TMRX, the surviving Entity
or the parent of the surviving Entity outstanding immediately after such Merger in
substantially the same proportions as their ownership of the Voting Securities of TMRC or
TMRX outstanding immediately prior to such Merger.

“Term of the Plan” means the period commencing on the Effective Date and ending on:

     (a) the last day of the two-year period beginning on the Effective Date if no Change in
Control shall have occurred during that one-year period (such last day being the “Expiration
Date”); or

     (b) if a Change in Control shall have occurred during (i) the one-year period beginning
on the Effective Date or (ii) any period for which the Term of the Plan shall have been
automatically extended pursuant to the second sentence of this definition, the last day of
the two-year period beginning on the date on which the Change in Control occurred.

     After the expiration of the time period described in subsection (a) of this
definition and in the absence of a Change in Control (as described in subsection (b)
of this definition), the Term of the Plan shall be automatically extended for successive
two-year periods beginning on the day immediately following the Expiration Date (the
beginning date of each successive two-year period being a “Renewal Date”), unless, not later
than nine months prior to the Expiration Date or applicable Renewal Date, the Company shall
give notice to Participants that the Term of the Plan will not be extended.

     “Termination Date” means the date as of which a Participant incurs a Separation From Service,
as determined in accordance with the provisions of Section 6.1.

     “Termination of Employment or Affiliation Relationship” means the termination of a
Participant’s Employment relationship with the Company (i) by the Company without Cause after a
Change in Control occurs, or (ii) by the Participant for Good Reason after a Change in Control
occurs.

     For purposes of this definition, a Participant’s Employment relationship shall be deemed to
have been terminated after a Change in Control, if (a) a Change in Control occurs and (b) (i) the
Participant’s Employment relationship is terminated by the Company without Cause

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prior to a Change in Control and such termination was at the request or direction of a Person who has
entered into an agreement with the Company, the consummation of which would constitute a Change in
Control; (ii) the Participant terminates his Employment relationship for Good Reason prior to a
Change in Control and the circumstance or event which constitutes Good Reason occurs at the request
or direction of a Person who has entered into an agreement with the Company, the consummation of
which would constitute a Change in Control; or (iii) the Participant’s Employment relationship is
terminated by the Company without Cause or by the Participant for Good Reason and such termination,
or the circumstance or event which constitutes Good Reason, is otherwise in connection with or in
anticipation of a Change in Control. For purposes of any determination regarding the applicability
of the immediately preceding sentence, any position taken by the Participant shall be presumed to
be correct unless the Company establishes to the satisfaction of the Committee that such position
is not correct.

     “Termination of Employment or Affiliation Relationship” does not include (i) a termination of
Employment due to the Participant’s death or Disability, or (ii) a termination of Employment by the
Participant without Good Reason.

     “TMRC” means The Meridian Resource Corporation, a Texas corporation, and any successor by
merger or otherwise.

     “TMRX” means The Meridian Resource & Exploration LLC, a Delaware limited liability company,
and any successor by merger or otherwise.

     “Voting Securities” means the outstanding securities entitled to vote generally in the
election of directors or other governing body.

     2.2 Number and Gender. As used in the Plan, unless the context otherwise expressly
requires to the contrary, references to the singular include the plural, and vice versa; references
to the masculine include the feminine and neuter; references to “including” mean “including
(without limitation)”; and references to Sections, Articles and clauses mean the sections and
clauses of the Plan,

     2.3 Headings. The headings of Sections and Articles herein are included solely for
convenience, and if there is any conflict between such headings and the text of the Plan, the text
shall control.

     2.4 Construction and Interpretation. TMRX and the Committee shall have full power,
authority, and discretion to control and manage the operation and administration of the Plan, and
to construe, interpret, and apply all of its provisions.

ARTICLE III

ELIGIBILITY

     The individuals who shall be eligible to participate in the Plan shall be those Eligible
Individuals who are selected by the Committee. The Committee shall notify each Eligible Individual
who has been selected for participation of his eligibility to participate in the Plan by furnishing
him a written notification of participation. Unless such notification (the “Notice of
Participation”) is delivered to an Eligible Individual by the Committee, the Eligible Individual

8

 

shall not be a Participant. Unless a Participant signs and returns to the Committee a copy of
the Notice of Participation on or prior to the deadline specified in the Notice of Participation,
he or she shall not be eligible to receive payments or benefits under the Plan. The Notice of
Participation shall specify whether the Eligible Individual is classified by the Committee as a
Level One Participant, a Level Two Participant or a Level Three Participant. The Notice of
Participation shall also specify the Eligible Individual’s Applicable Factor and the Eligible
Individual’s Applicable Period.

     Notwithstanding any other provision of the Plan, the Committee may discontinue a Participant’s
eligibility to participate in the Plan by providing him written advance notice (the “Notice”), no
later than 9 months prior to the Expiration Date or a Renewal Date (as defined in the definition of
“Term of the Plan” in Section 2.1), that he shall no longer participate in the Plan;
provided, however, that should a Change in Control occur during such 9-month advance notification
period, the Notice shall be void and of no effect, and the Participant shall be eligible to
participate in the Plan as if the Notice were never given.

     A Participant shall remain a Participant until (a) he is removed as a Participant under the
terms of the Plan, or (b) he is paid the entire amount of the benefit under the Plan to which he is
entitled. A Participant is no longer a Participant if he incurs (i) a termination of Employment
due to his death or Disability, or (ii) a termination of Employment without Good Reason.

ARTICLE IV

BENEFITS

     4.1 Equity Based Compensation. Upon the occurrence of a Change in Control, all
options to acquire TMRC stock, all shares of restricted TMRC stock, all other equity or phantom
equity incentives and any awards the value of which is determined by reference to or based upon the
value of TMRC stock, held by the Participant under any plan of the Company shall become immediately
vested, exercisable and nonforfeitable and all conditions thereof (including, but not limited to,
any required holding periods) shall be deemed to have been satisfied. However, in the case of such
an award that is subject to Section 409A, the payment of the award shall not be made earlier than
the earlier to occur of (1) the date on which occurs a Change in Control that constitutes a change
in the ownership or effective control of the corporation, or in the ownership of a substantial
portion of the assets of the corporation, within the meaning of Section 409A or (2) the payment
date specified in the applicable award agreement or the applicable terms and conditions relating to
the award.

     4.2 Benefits Following Termination of Employment or Affiliation Relationship. If a
Participant incurs a Termination of Employment or Affiliation Relationship during the Term of the
Plan, the Company shall provide the Participant the benefits described below.

     (a) Severance Payment. The Company will pay the Participant a cash severance
benefit in an amount equal to the Applicable Factor multiplied by the Participant’s Highest
Base Compensation. A Participant’s severance payment under this paragraph (a) will be paid
in accordance with the provisions of Article V.

9

 

     (b) Accident and Health Insurance Benefits. The Company shall arrange to
provide the Participant and his dependents continuation coverage under the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) for accident and health
insurance benefits substantially similar to those provided to the Participant and his
dependents by the Company immediately prior to the Termination Date or, if more favorable to
the Participant, those provided to the Participant and his dependents by the Company
immediately prior to the first occurrence of an event or circumstance constituting Good
Reason, at no cost to the Participant, for the Applicable Period following the Participant’s
Termination Date (or such shorter period of time as is required under COBRA),

     Except for any reimbursements under the applicable group health plan that are subject
to a limitation on reimbursements during a specified period, the amount of expenses eligible
for reimbursement under this Section 4.2(b), or in-kind benefits provided, during
the Participant’s taxable year shall not affect the expenses eligible for reimbursement, or
in-kind benefits to be provided, in any other taxable year of the Participant. Any
reimbursement of an expense described in this Section 4.2(b) shall be made on or
before the last day of the Participant’s taxable year following the Participants’ taxable
year in which the expense was incurred. The Participant’s right to reimbursement or in-kind
benefits pursuant to this Section 4.2(b) shall not be subject to liquidation or
exchange for another benefit.

     (c) Life Insurance. A Participant shall be entitled to a single sum cash
payment in an amount equivalent to the product of (i) the total monthly basic life insurance
premium (both the portion paid by the Company and the portion paid by the Participant)
applicable to the Participant’s basic life insurance coverage on his Termination Date and
(ii) the Applicable Period. The single sum cash payment will be made in accordance with the
provisions of Article V. If a conversion option is applicable under the Company’s
group life insurance program, a Participant may, at his option, convert his basic life
insurance coverage to an individual policy after his Termination Date by completing the
forms required by the Company.

     4.3 Legal Fees. The Company shall pay all reasonable legal fees and expenses incurred
by the Participant (i) in disputing in good faith any issue relating to the Participant’s
termination of employment or affiliation, or (ii) in seeking in good faith to obtain or enforce any
benefit or right provided under the Plan. Such payments shall be made within ten (10) business
days after the delivery of the Participant’s written request for the payment accompanied by such
evidence of fees and expenses incurred as the Company may reasonably require. In any event the
Company shall pay the Participant such legal fees and expenses by the last day of the Participant’s
taxable year following the taxable year in which the Participant incurred such legal fees and
expenses. The legal fees or expenses that are subject to reimbursement pursuant to this
Section 4.3 shall not be limited as a result of when the fees or expenses are incurred.
The amount of legal fees or expenses that is eligible for reimbursement pursuant to this
Section 4.3 during a given taxable year of the Participant shall not affect the amount of
expenses eligible for reimbursement in any other taxable year of the Participant. The right to
reimbursement pursuant to this Section 4.3 is not subject to liquidation or exchange for
another benefit.

10

 

ARTICLE V

TIME OF BENEFITS PAYMENTS

     The Company shall pay the Participant any cash benefits described in paragraphs (a),
(b), and (c) of Section 4.2 in a single sum cash payment within thirty (30)
days after the Participant’s Separation From Service if the Participant is not a Specified Employee
or on the date that is six months following the Participant’s Separation From Service if the
Participant is a Specified Employee.

ARTICLE VI

TERMINATION PROCEDURES AND COMPENSATION DURING DISPUTE

     6.1 Notice of Termination. After a Change in Control and during the Term of the Plan,
any purported termination of the Participant’s Employment relationship by the Company shall be
communicated by the Company by a written Notice of Termination to the Participant in accordance
with Section 11.7 hereof. For purposes of this Agreement, a “Notice of Termination” shall
mean a notice which shall indicate the specific termination provision in the Plan relied upon and
shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Participant’s Employment under the provision so indicated. Further, a Notice of
Termination for Cause is required to include a copy of a resolution duly adopted by the affirmative
vote of not less than three-quarters (3/4) of the entire membership of the Board at a meeting of
the Board which was called and held for the purpose of considering such termination (after
reasonable notice to the Participant and an opportunity for the Participant, together with the
Participant’s counsel, to be heard before the Board) finding that, in the good faith opinion of the
Board, the Participant was guilty of conduct set forth in clause (i) or (ii) of the
definition of Cause herein, and specifying the particulars thereof in detail. No purported
termination of the Participant’s Employment by the Company after a Change in Control and during the
Term of the Plan shall be effective unless the Company complies with the procedures set forth in
this Section 6.1.

     6.2 Termination Date. “Termination Date,” with respect to any purported Separation
From Service after a Change in Control and during the Term of the Plan, shall mean (i) if the
Participant’s Employment relationship is terminated for Disability, thirty (30) days after Notice
of Termination is given (provided that the Participant shall not have returned to the full-time
performance of the Participant’s duties during such thirty (30) day period), and (ii) if the
Participant’s Employment relationship is terminated for any other reason, the date specified in the
Notice of Termination (which, in the case of a termination by the Company, shall not be less than
thirty (30) days (except in the case of a termination for Cause) and, in the case of a termination
by the Participant, shall not be less than fifteen (15) days nor more than sixty (60) days,
respectively, from the date such Notice of Termination is given).

     6.3 Dispute Concerning Termination. If within fifteen (15) days after any Notice of
Termination is given, or, if later, prior to the Termination Date (as determined without regard to
this Section 6.3), the party receiving such Notice of Termination notifies the other party
that a dispute exists concerning the termination, the Termination Date shall be extended until the
earlier of (i) the date on which the Term of the Plan ends or (ii) the date on which the dispute is
finally resolved, either by mutual written agreement of the parties or by a final judgment, order

11

 

or decree of an arbitrator or a court of competent jurisdiction (which is not appealable or
with respect to which the time for appeal therefrom has expired and no appeal has been perfected);
provided, however, that the Termination Date shall be extended by a notice of dispute given by the
Participant only if such notice is given in good faith and the Participant pursues the resolution
of such dispute with reasonable diligence.

ARTICLE VII

WITHHOLDING

     The Company may withhold from any benefits paid under the Plan all income, employment, and
other taxes required to be withheld under applicable law.

ARTICLE VIII

DEATH OF PARTICIPANT

     If a Participant dies after his Termination Date but before the Participant receives full
payment of the benefits to which he is entitled under the Plan, any unpaid benefits will be paid to
the Participant’s surviving spouse, or if the Participant does not have a surviving spouse, to the
Participant’s estate.

ARTICLE IX

AMENDMENT AND TERMINATION

     During the Term of the Plan, subject to Article X, the Plan may not be terminated or
amended in any manner that would negatively affect a Participant’s rights under the Plan. Further,
no amendment or termination of the Plan after a Participant’s Termination Date shall affect the
benefits payable to such Participant under the Plan. Subject to the foregoing restrictions, TMRX
may amend or terminate the Plan, at any time in its discretion, by a written instrument that is
authorized by the Committee,

ARTICLE X

ADOPTION OF PLAN BY AFFILIATES

     (a) With the written approval of the Committee, any entity that is an Affiliate may
adopt the Plan by appropriate action of its board of directors or noncorporate counterpart,
as evidenced by a written instrument executed by an authorized officer of such entity or an
executed adoption agreement (approved by the board of directors or noncorporate counterpart
of the Affiliate), agreeing to be bound by all the terms, conditions and limitations of the
Plan and providing all information required by the Committee.

     (b) The provisions of the Plan shall apply separately and equally to each adopting
Affiliate in the same manner as is expressly provided for the Company, except that the power
to appoint the Committee and the power to amend or terminate the Plan shall be exercised by
TMRX.

     (c) For purposes of the Code and ERISA, the Plan as adopted by the Affiliates shall
constitute a single plan rather than a separate plan of each Affiliate.

12

 

ARTICLE XI

MISCELLANEOUS

     11.1 Plan Not an Employment Contract. The adoption and maintenance of the Plan is not
a contract between the Company and the Employees and Consultants that gives any Employee or
Consultant the right to be retained in Employment. Likewise, it is not intended to interfere with
the rights of the Company to terminate an Employee’s or Consultant’s Employment at any time, with
or without notice and with or without cause, or to interfere with an Employee’s or Consultant’s
right to terminate his Employment at any time.

     11.2 Alienation Prohibited. No benefits hereunder shall be subject to anticipation or
assignment by a Participant, to attachment by, interference with, or control of any creditor of a
Participant, or to being taken or reached by any legal or equitable process in satisfaction of any
debt or liability of a Participant prior to its actual receipt by the Participant. Any attempted
conveyance, transfer, assignment, mortgage, pledge, or encumbrance of the benefits hereunder prior
to payment thereof shall be void.

     11.3 Severability. Each provision of the Plan may be served. If any provision is
determined to be invalid or unenforceable, that determination shall not affect the validity or
enforceability of any other provision.

     11.4 Binding Effect. The Plan shall be binding upon any successor of the Company.
Further, the Board shall not authorize a Change in Control that is a merger or a sale transaction
unless the purchaser or the Company’s successor agrees to take such actions as are necessary to
cause all Participants to be paid or provided all benefits due under the terms of the Plan as in
effect immediately prior to the Change in Control.

     11.5 Other Amounts Due. Except as expressly provided otherwise herein, the payments
and benefits provided for in the Plan are in addition to and not in lieu of amounts and benefits
that are earned by a Participant prior to his Termination Date. The Company shall pay a
Participant any compensation earned through the Termination Date but not previously paid the
Participant. Further the Participant shall be entitled to any other amounts or benefits due the
Participant in accordance with any contract, plan, program or policy of the Company or any of its
Affiliates, to the extent not offset against the benefits provided under the Plan as described
below. Amounts that the Participant is entitled to receive under any plan, program, contract or
policy of the Company or any of its Affiliates at or subsequent to the Participant’s Termination
Date shall be payable or otherwise provided in accordance with such plan, program, contract or
policy, except as may be expressly modified herein. Notwithstanding any provision herein to the
contrary, and for the avoidance of any doubt, in the event that a Participant is eligible to
receive payments and benefits under both (i) this Plan and (ii) any other severance or
change-of-control plan, program, contract, or agreement (including, without limitation, any
employment agreement by and between such Participant and the Company or its Affiliate) that is
sponsored or maintained by the Company or any of its Affiliates (“Other Source”), then any monetary
benefits provided under this Plan will be reduced and offset by the monetary benefits due and
payable from the Other Source, with the result being that the Participant receives, in the
aggregate, an amount that is not in excess of any monetary benefits due under this Plan but nothing
in excess of such amount. Further, in the event that any non-monetary benefits are due

13

 

from an Other Source, the Company will compare such non-monetary benefits to the non-monetary
benefits provided under this Plan and, where the non-monetary benefits are of the same nature or
class, the Participant will be provided with the better of the two non-monetary benefits; provided,
however, under no circumstances shall the Participant receive duplicate or extra non-monetary
benefits as determined by the Company, with the result being that the Participant receives, in the
aggregate, all non-monetary benefits due under this Plan but nothing more. If the Participant is
eligible to receive benefits from any Other Source, the form and timing of payments under such
Other Source will be determined as set forth in such Other Source, and the form and timing of any
remaining monetary and non-monetary benefits that are due and payable under this Plan will be as
described herein and taking into account any required offset.

     11.6 Notices. For the purpose of the Plan, notices and all other communications
provided for in the Plan shall be in writing and shall be deemed to have been duly given when
delivered or mailed by United States registered mail, return receipt requested, postage prepaid,
addressed, if to the Participant, to the residential address listed on the Participant’s
notification of participation and, if to the Company, to 1401 Enclave Parkway, Suite 300; Houston,
Texas 77077; Attention: President, or to such other address as either party may have furnished to
the other in writing in accordance herewith, except that notice of change of address shall be
effective only upon actual receipt.

     11.7 Governing Law. All provisions of the Plan shall be construed in accordance with
the laws of the State of Texas, except to the extent preempted by federal law and except to the
extent that the conflicts of laws provisions of the State of Texas would require the application of
the relevant law of another jurisdiction, in which event the relevant law of the State of Texas
will nonetheless apply, with venue for litigation being in Houston, Texas.

ARTICLE XII

CLAIMS PROCEDURES

     12.1 Notice of Claim. Normally, an Eligible Individual does not need to present a
formal claim for benefits payable under the Plan. However, in the event that an Eligible
Individual, Participant or other person (referred to as the “Claimant”) has a claim for any
benefits that he believes were not provided in accordance with the terms and provisions of the Plan
or otherwise, the Claimant must file a claim with the Committee within six (6) months from the date
of the affected Eligible Individual’s Termination of Employment. Any Claimant who fails to file a
claim within such 6-month period will completely and irrevocably forfeit and lose any and all
rights that he may have, or ever had, to receive any benefits under the Plan at any time.

     Any Claimant who applies for benefits or has an inquiry concerning the Plan or present or
future rights to benefits under the Plan must submit his application or inquiry to the Committee,
in writing, addressed as follows:

14

 

Mr. Harlan H. Chappelle

Alta Mesa Holdings, L.P.

15415 Katy Freeway

Houston, TX 77094-1816

     Prior to authorizing and awarding any benefits hereunder, the Committee may require the
Claimant to provide additional information, and to complete any required or requested releases,
forms or other documents hereunder, including filing of all claims and requests for payment from
any other source.

     12.2 Claims Review Procedure. If any claim for benefits filed by a Claimant is wholly
or partially denied, the Committee will notify the Claimant of its determination in writing. Such
notification will be written in a manner calculated to be understood by the average Claimant, and
will contain (a) specific reasons for the denial, (b) specific reference to pertinent Plan
provisions, (c) a description of any additional material or information necessary for the Claimant
to perfect such claim and an explanation of why such material or information is necessary, and (d)
information as to the steps to be taken if the Claimant wishes to submit a request for review.
Such notification will be given within 60 days after the claim is received by the Committee (or
within 120 days if special circumstances require an extension of time for processing the claim, and
if written notice of such extension and circumstances is given to the Claimant within the initial
60-day period). However, if any such notification is not given within such period, the claim will
be considered automatically denied as of the last day of such period and the Claimant may then
request a review of the claim.

     Within 60 days after the date on which a Claimant receives a written notice of a denied claim
(or, if applicable, within 60 days after the date on which such denial is considered to have
occurred) the Claimant (or his duly authorized representative) may (a) file a written request
(including pertinent documents) with the Committee for a review of the denied claim, and (b) submit
written issues and comments to the Committee. The Committee will review the claim and notify the
Claimant of its decision in writing. Such notification will be written in a manner calculated to
be understood by the Claimant and will contain specific reasons for the decision, as well as
specific references to pertinent Plan provisions. The decision on review will be made within 60
days after the request for review is received by the Committee, or within 120 days if special
circumstances require an extension of time for processing the request, such as a decision by the
Committee to hold a hearing, provided that written notice of such extension and circumstances is
given to the Claimant within the initial 60-day period. If the decision on review is not made
within such period, the claim will be considered denied as of the last day of such period. All
final determinations concerning claims made pursuant to these claims review procedures will not be
subject to further review by anyone, but will be final, conclusive and binding on the Claimant and
all other persons. To the extent the Committee has been granted discretionary authority under the
Plan, the Committee’s prior exercise of such authority will not obligate it to exercise its
authority in a like fashion thereafter.

     12.3 Exhaustion of Administrative Remedies. Completion of the claims procedures
described in Sections 12.1 and 12.2 is a condition precedent to the commencement of
any legal or equitable action in connection with a claim for benefits under the Plan by a Claimant
or by any other person claiming rights individually or through a Claimant; provided, however, the

15

 

Committee may, in its discretion, waive compliance with such claims procedures as a condition
precedent to filing of any such action. Any legal or equitable action in connection with, or
arising out of, a claim for benefits under the Plan, including any claim denial, must be brought
not later than one (1) year following a final Determination by the Plan Administrator on the claim
pursuant to Section 12.2.

ARTICLE XIII

PLAN ADMINISTRATION

     13.1 Allocation of Authority. TMRX will control and manage the operation and
administration of the Plan, except to the extent such duties have been delegated to other persons
or entities as provided in the Plan. Any decisions made by TMRX or the Plan Administrator (or any
other person or entity delegated authority by TMRX or the Plan Administrator, as applicable) to
determine benefits in accordance with the Plan will be final and conclusive on all Participants,
and all other persons and entities, subject only to the claims appeal provisions of the Plan.

     13.2 Powers and Duties of the Plan Administrator. The Plan Administrator will have
such duties and powers as may be necessary to discharge its duties hereunder, including, but not by
way of limitation, the following:

     (a) to have discretionary authority to (i) administer, enforce, construe, and construct
the Plan, (ii) make decisions relating to all questions of eligibility to participate, and
(iii) make a determination of benefits including, without limitation, reconciling any
inconsistency, correcting any defect, supplying any omission, and making any findings of
fact. All decisions, interpretations and other determinations described in this
subsection (a) will be final and conclusive on all persons and entities subject only
to the claims appeal provisions of the Plan. Benefits under the Plan will be paid only if
the Plan Administrator determines, in its discretion, that the Participant is entitled to
them. There will be no de novo review of any such determination by any court. Any review
of such determination will be solely limited to determining whether the determination was so
arbitrary and capricious as to constitute an abuse of discretion under ERISA standards;

     (b) to prepare and distribute, in such manner as the Plan Administrator determines to
be appropriate, information regarding the Plan;

     (c) to receive from the Employer and Participants such information as necessary for the
administration of the Plan;

     (d) to receive, review and keep on file (as it deems necessary) reports of benefit
payments by the Employer and reports of disbursements for expenses;

     (e) to exercise such authority and responsibility as it deems appropriate in order to
comply with the terms of the Plan relating to the records of Participants; and

     (f) to appoint persons or entities to assist in the administration of the Plan as it
deems advisable; and the Plan Administrator may delegate thereto any power or duty imposed
upon or granted to it under the Plan.

16

 

     If, due to errors in drafting, any Plan provision does not accurately reflect its intended
meaning, as determined by the Plan Administrator, in its sole and exclusive judgment, the provision
will be considered ambiguous and will be interpreted in a fashion consistent with its intent, as
determined by the Plan Administrator. The Plan may be amended retroactively to cure any such
ambiguity, notwithstanding anything in the Plan to the contrary.

     13.3 Delegation by the Plan Administrator. The Plan Administrator may delegate to
other persons or entities any of the administrative functions relating to the Plan, together with
all powers necessary to enable its designee(s) to properly carry out such duties hereunder. The
Plan Administrator may employ legal counsel, accountants and such other persons or entities as it
deems advisable in its discretion. The Plan Administrator, as well as any person to whom any duty
or power in connection with operation of the Plan has been delegated, may rely upon all valuations,
reports, and opinions furnished by any accountant, consultant, third-party service provider, legal
counsel, or other specialist. Moreover, the Plan Administrator, as well as any of its delegates,
will be fully protected in respect to any action taken or omitted in reasonable reliance on such
information.

17

 

APPENDIX A

ERISA INFORMATION

	(1)	 	Name of Plan: The Meridian Resource & Exploration LLC Change in Control Severance
Plan.
	 
	(2)	 	Plan Sponsor:
	 
	 	 	The Meridian Resource & Exploration LLC

Attn: President

1401 Enclave Parkway, Suite 300

Houston, Texas 77077
	 
	 	 	Plan Administrator:
	 
	 	 	The Meridian Resource & Exploration LLC

Attn: President

1401 Enclave Parkway, Suite 300

Houston, Texas 77077
	 
	(3)	 	Employer Identification Number for Plan Sponsor: 76-0348919
	 
	(4)	 	Plan Number: 510
	 
	(5)	 	Type of Plan: The Plan is a self-funded “employee welfare benefit plan” subject to
ERISA that provides severance pay benefits. No trust is maintained in connection with the
Plan and the Plan is not considered to be “funded” for ERISA purposes.
	 
	(6)	 	Type of Administration: The Plan is administered by the Plan Administrator with
benefits provided in accordance with the terms and conditions of the Plan.
	 
	(7)	 	Agent for Service of Legal Process:
	 
	 	 	The Meridian Resource & Exploration LLC

Attn: President

1401 Enclave Parkway, Suite 300

Houston, Texas 77077
	 
	(8)	 	Sources of Contributions: The adopting employers of the Plan provide all
contributions to the Plan. No employee contributions are required.

A-1

 

APPENDIX B

YOUR ERISA RIGHTS

     As a Participant under the Plan, you are entitled to certain rights and protections under
ERISA. These rights are described below. ERISA provides that all Plan Participants shall be
entitled to:

     (i) Examine, without charge, at the Plan Administrator’s office, all Plan documents,
including insurance contracts and copies of documents filed by the Plan with the U.S.
Department of Labor (such as detailed annual reports and Plan descriptions);

     (ii) Obtain copies of Plan documents and other Plan information upon written request to
the Plan Administrator. The Plan Sponsor, as Plan Administrator, may impose a reasonable
charge for the copies.

     (iii) Receive a summary of the Plan’s summary annual financial report, if applicable.
The Plan Administrator is required to furnish each Participant with a copy of the summary
annual report if it is required to prepare one.

     In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who
are responsible for the operation of the Plan. The people who operate the Plan, called
“fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan
Participants and beneficiaries. No one, including your employer, or any other person, may fire you
or otherwise discriminate against you to prevent you from obtaining a benefit or exercising your
rights under ERISA. If your claim for a benefit is denied in whole or in part, you must receive a
written explanation of the reason for the denial. You have the right to have the Plan
Administrator review and reconsider your claim.

     Under ERISA, there are steps you can take to enforce the above rights. For instance, if you
request materials from the Plan Administrator and do not receive them within 30 days, you may file
suit in a federal court. In such case, the court may require the Plan Administrator to provide the
materials and pay you up to $110 a day until you receive the materials, unless the materials were
not sent because of reasons beyond the control of the Plan Administrator.

     If you have a claim for benefits which is denied or ignored, in whole or in part, you may file
suit in a state or federal court. If it should happen that the Plan fiduciaries misuse the Plan’s
money, or if you are discriminated against for asserting your rights, you may seek assistance from
the U.S. Department of Labor; or you may file suit in a federal court. The court will decide who
should pay court costs and legal fees. If you are successful, the court may order the person you
have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and
fees, for example, if it finds your claim is frivolous.

     If you have any questions about your Plan, you should contact the Plan Administrator. If you
have any questions about this statement or about your rights under ERISA, you should contact the
nearest area office of the U.S. Employee Benefits Security Administration, Department of Labor, as
listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee
Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W.,
Washington, D.C. 20210.

B-1

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