8-K

                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549


                                   FORM 8-K

                                CURRENT REPORT


    PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934


             DATE OF REPORT (Date of earliest event reported): MAY 5, 1999



                       THE MERIDIAN RESOURCE CORPORATION
              (Exact name of registrant as specified in charter)


            TEXAS                    1-10671                 76-0319553
   (State of Incorporation)   (Commission File No.)       (I.R.S. Employer 
                                                         Identification No.)


 15995 N. BARKERS LANDING, SUITE 300
           HOUSTON, TEXAS                                      77079
(Address of Principal Executive Offices)                    (Zip Code)


      REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:  (281) 558-8080

                                   Page 1
                        Exhibit Index Appears on Page 4

ITEM 5.   OTHER EVENTS.

      On May 5, 1999, The Meridian Resource Corporation, a Texas corporation
(the "Company"), announced that its Board of Directors had approved a
Shareholder Rights Plan (the "Plan"). A copy of the Rights Agreement dated May
5, 1999, between the Company and American Stock Transfer & Trust Co., as Rights
Agent, the Resolution Establishing a Series of Preferred Stock dated May 5,
1999, Form of Right Certificate, the Summary of Rights to Purchase Preferred
Shares and the press release announcing the adoption of the Plan are filed as
Exhibits 4.1, 4.2, 4.3, 4.4 and 99.1, respectively, and are incorporated herein
by reference.

ITEM 7.   FINANCIAL STATEMENTS AND EXHIBITS.

      (c)   EXHIBITS.

        3.1  -  Amendment No. 1 to Amended and Restated Bylaws

        4.1  -  Rights Agreement dated May 5, 1999, between the Company and
                American Stock Transfer & Trust Co., as Rights Agent.

        4.2  -  Resolution Establishing a Series of Preferred Stock dated 
                May 5, 1999.

        4.3  -  Form of Right Certificate.

        4.4  -  Summary of Rights to Purchase Preferred Shares.

       99.1  -  Press release of the Company dated May 6, 1999, announcing the 
                adoption of the Plan.

                                   Page 2

                                  SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                    THE MERIDIAN RESOURCE CORPORATION



Dated:  May 11, 1999                By:  P. RICHARD GESSINGER
                                         P. Richard Gessinger
                                         Chief Financial Officer

                                   Page 3

                               INDEX TO EXHIBITS



     NUMBER                               EXHIBIT
     ------                               -------
      3.1      Amendment No. 1 to Amended and Restated Bylaws

      4.1      Rights Agreement dated May 5, 1999, between the Company and
               American Stock Transfer & Trust Co., as Rights Agent.

      4.2      Resolution Establishing a Series of Preferred Stock dated May 5, 
               1999.

      4.3      Form of Right Certificate.

      4.4      Summary of Rights to Purchase Preferred Shares.
                                                                         
     99.1      Press release of the Company dated May 6, 1999, announcing the
               adoption of the Plan.

                                   Page 4

EX-3.1

                                                                     EXHIBIT 3.1

                       THE MERIDIAN RESOURCE CORPORATION

                              AMENDMENT NO. 1 TO
                          AMENDED AND RESTATED BYLAWS
                         ADOPTED EFFECTIVE MAY 5, 1999

      At a meeting of the Board of Directors of The Meridian Resource
Corporation, a Texas corporation (the "Company"), held May 5, 1999, the Board of
Directors of the Company approved the following amendment to the Company's
Amended and Restated Bylaws (the "Bylaws") by adding the following sections to
Article II of the Bylaws:

      SECTION 13.  NOTICE OF BUSINESS.

      (a) No business shall be conducted at an annual meeting of stockholders
unless such business is properly brought before the meeting in accordance with
the procedures hereinafter set forth in this Section 13; PROVIDED, HOWEVEr,
nothing in this Section 13 shall be deemed to preclude discussion by any
stockholder of any business properly brought before the annual meeting in
accordance with said procedures.

      (b) To be properly brought before the meeting, business must be (i)
specified in the notice of meeting (or any supplement thereto) given by or at
the direction of the Board of Directors, (ii) otherwise properly brought before
the meeting by or at the direction of the Board of Directors or (iii) otherwise
properly brought before the meeting by a stockholder who (A) is a stockholder of
record on the date of the giving of the notice provided for below and on the
record date for the determination of stockholders entitled to vote at such
annual meeting and (B) gives timely notice of such business in writing to the
Secretary of the corporation. To be timely, a stockholder's notice must be
delivered to or mailed and received at the principal executive offices of the
corporation not less than 90 days nor more than 120 days prior to the
anniversary date of the immediately preceding annual meeting of stockholders;
provided, however, that in the event that the annual meeting is called for date
that is not within 30 days before or after such anniversary date, notice by the
stockholder to be timely must be so received not later than the close of
business on the tenth day following the day on which such notice of the date of
the meeting was mailed or public disclosure of the annual meeting date was made,
whichever occurs first. A stockholder's notice to the Secretary of the
corporation shall set forth (i) a brief description of the each matter desired
to be brought before the annual meeting and the reasons for conducting such
business at the annual meeting, (ii) the name and record address of the
stockholder proposing such business, (iii) the class and number of shares of the
corporation that are beneficially owned by the stockholder, (iv) any material
interest of the stockholder in such business and (v) a representation that such
stockholder intends to appear in person or by proxy at the annual meeting to
bring such business before the meeting.

      (c) Any adjournment or postponement of the original meeting whereby the
meeting will reconvene within 30 days from the original date shall be deemed for
purposes of notice to be a continuation of the original meeting and no business
may be brought before any such reconvened meeting unless timely notice of such
business was given to the Secretary of the corporation for the meeting as
originally scheduled.

      (d) If the Chairman of an annual meeting of stockholders determines that
business was not properly brought before the annual meeting in accordance with
the foregoing procedures, the Chairman shall declare to the meeting that the
business was not properly brought before the meeting and such business shall not
be transacted.

      (e) For purpose of this Section 13, the term "public disclosure" shall
mean disclosure in a press release reported by the Dow Jones News Service,
Associated Press or comparable national news service or in a document publicly
filed by the corporation with the Securities and Exchange Commission pursuant to
Section 13, 14 or 15(d) of the Securities Exchange Act of 1934, as amended.

      (f) Notwithstanding anything contained in this Section 13 to the contrary,
a stockholder shall also comply with all applicable requirements of the
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder with respect to the matters set forth in this Section 13.
Nothing in this Section 13 shall be deemed to affect any rights of stockholders
to request inclusion of proposals in the corporation's proxy statement pursuant
to Rule 14a-8 under the Securities Exchange Act of 1934, as amended.

      SECTION 14.  NOMINATION OF DIRECTORS.

      (a) Only persons who are nominated in accordance with the procedures set
forth in this Section 14 shall be eligible for election as directors of the
corporation.

      (b) Nominations of persons for election to the Board of Directors of the
corporation may be made at a meeting of stockholders only (i) by or at the
direction of the Board of Directors or (ii) by a stockholder who (A) is a
stockholder of record on the date of the giving of the notice provided for below
and on the record date for the determination of stockholders entitled to vote at
such annual meeting and (B) gives timely notice in writing to the Secretary of
the corporation of such nomination. To be timely, a stockholder's notice must be
delivered to or mailed and received at the principal executive offices of the
corporation not less than 90 days nor more than 120 days prior to the
anniversary date of the immediately preceding annual meeting of stockholders;
provided, however, that in the event that the annual meeting is called for date
that is not within 30 days before or after such anniversary date, notice by the
stockholder to be timely must be so received not later than the close of
business on the tenth day following the day on which such notice of the date of
the meeting was mailed or public disclosure of the annual meeting date was made,
whichever occurs first. A stockholder's notice to the Secretary of the
corporation shall set forth (i) as to each person whom the stockholder proposes
to nominate for election or re-election as director, all information relating to
such person that is required to be disclosed in solicitations of proxies for
election of directors, or is otherwise required, in each case pursuant to
Regulation 14A promulgated under the Securities Exchange Act of 1934, as
amended, or any successor regulation thereto, (ii) the name and record address
of the stockholder proposing such business, (iii) the class and number of shares
of the corporation that are beneficially owned by the stockholder, (iv) a
description of all arrangements or understandings between such stockholder and
each proposed nominee and any other person or persons (including their names)
pursuant to which the nomination or nominations are to be made by such
stockholder and (v) a representation that such stockholder intends to appear in
person or by proxy at the meeting to nominate the persons named in the notice.
Such notice must be accompanied

                                     -2-

by a written consent of each proposed nominee to being named as a nominee and to
serve as a director if elected.

      (c) Any adjournment or postponement of the original meeting whereby the
meeting will reconvene within 30 days from the original date shall be deemed for
purposes of notice to be a continuation of the original meeting and no
nominations by a stockholder of persons to be elected as directors of the
corporation may be made at any such reconvened meeting unless timely notice of
such nominations was given to the Secretary of the corporation for the meeting
as originally scheduled.

      (d) If the Chairman of a meeting of stockholders determines that a
nomination was not properly brought before the annual meeting in accordance with
the foregoing procedures, the Chairman shall declare to the meeting that the
nomination was not properly brought before the meeting and such nomination shall
be disregarded.

      (e) For purpose of this Section 14, the term "public disclosure" shall
mean disclosure in a press release reported by the Dow Jones News Service,
Associated Press or comparable national news service or in a document publicly
filed by the corporation with the Securities and Exchange Commission pursuant to
Section 13, 14 or 15(d) of the Securities Exchange Act of 1934, as amended.

      (f) Notwithstanding anything contained in this Section 14 to the contrary,
a stockholder shall also comply with all applicable requirements of the
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder with respect to the matters set forth in this Section 14.
Nothing in this Section 14 shall be deemed to affect any rights of the holders
of any series of Preferred Stock to elect directors under specified
circumstances.

                                     -3-

EX-4.1

                                                                     EXHIBIT 4.1

                       THE MERIDIAN RESOURCE CORPORATION



                                      AND



                      AMERICAN STOCK TRANSFER & TRUST CO.



                                 RIGHTS AGENT



                               RIGHTS AGREEMENT



                            DATED AS OF MAY 5, 1999

                               TABLE OF CONTENTS


Section 1.  CERTAIN DEFINITIONS..............................................1

Section 2.  APPOINTMENT OF RIGHTS AGENT......................................4

Section 3.  ISSUE OF RIGHT CERTIFICATES......................................4

Section 4.  FORM OF RIGHT CERTIFICATES.......................................6

Section 5.  COUNTERSIGNATURE AND REGISTRATION................................6

Section 6.  TRANSFER, SPLIT UP, COMBINATION AND EXCHANGE OF RIGHT 
            CERTIFICATES; MUTILATED, DESTROYED, LOST OR STOLEN RIGHT 
            CERTIFICATES.....................................................6

Section 7.  EXERCISE OF RIGHTS; PURCHASE PRICE; EXPIRATION DATE OF RIGHTS....7

Section 8.  CANCELLATION AND DESTRUCTION OF RIGHT CERTIFICATES...............9

Section 9.  AVAILABILITY OF PREFERRED SHARES; TRANSFER TAXES; EXCHANGE 
            LISTING; SECURITIES REGISTRATION.................................9

Section 10. PREFERRED SHARES RECORD DATE.....................................9

Section 11. ADJUSTMENT OF PURCHASE PRICE, NUMBER OF SHARES OR NUMBER OF 
            RIGHTS..........................................................10

Section 12. CERTIFICATE OF ADJUSTED PURCHASE PRICE OR NUMBER OF SHARES......16

Section 13. CONSOLIDATION, MERGER OR SALE OR TRANSFER OF ASSETS OR EARNING 
            POWER...........................................................16

Section 14. FRACTIONAL RIGHTS AND FRACTIONAL SHARES.........................18

Section 15. RIGHTS OF ACTION................................................19

Section 16. AGREEMENT OF RIGHT HOLDERS......................................19

Section 17. RIGHT CERTIFICATE HOLDER NOT DEEMED A STOCKHOLDER...............19

Section 18. CONCERNING THE RIGHTS AGENT.....................................20

Section 19. MERGER OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT.......20

Section 20. DUTIES OF RIGHTS AGENT..........................................21

                                    (i)

Section 21. CHANGE OF RIGHTS AGENT..........................................22

Section 22. ISSUANCE OF NEW RIGHT CERTIFICATES..............................23

Section 23. REDEMPTION......................................................23

Section 24. EXCHANGE........................................................24

Section 25. NOTICE OF CERTAIN EVENTS........................................25

Section 26. NOTICES.........................................................26

Section 27. SUPPLEMENTS AND AMENDMENTS......................................26

Section 28. SUCCESSORS......................................................27

Section 29. BENEFITS OF THIS AGREEMENT......................................27

Section 30. SEVERABILITY....................................................27

Section 31. DETERMINATIONS AND ACTIONS BY THE BOARD OF DIRECTORS............27

Section 32. GOVERNING LAW...................................................28

Section 33. COUNTERPARTS....................................................28

Section 34. DESCRIPTIVE HEADINGS............................................28


Exhibit A-Statement of Resolution Establishing Series of Shares            A-1

Exhibit B-Form of Right Certificate                                        B-1

Exhibit C-Summary of Rights to Purchase Preferred Shares                   C-1

                                    (ii)

                               RIGHTS AGREEMENT


      Rights Agreement (this "Agreement") dated as of May 5, 1999, between The
Meridian Resource Corporation, a Texas corporation (the "Company"), and American
Stock Transfer & Trust Co. (the "Rights Agent").

      The Board of Directors of the Company has authorized and declared a
dividend, and thereby directed the issuance, of one Preferred Share (as such
term is hereinafter defined) purchase right (a "Right") for and in respect of
each Common Share (as such term is hereinafter defined) outstanding on May 17,
1999 (the "Record Date"), each Right representing the right to purchase one
one-thousandth interest in a Preferred Share, upon the terms and subject to the
conditions herein set forth, and has further authorized and directed the
issuance of one Right with respect to each Common Share that shall become
outstanding between the Record Date and the earliest of the Distribution Date,
the Redemption Date and the Final Expiration Date (as such terms are hereinafter
defined).

      Accordingly, in consideration of the premises and the mutual agreements
herein set forth, the parties hereby agree as follows:

      Section 1. CERTAIN DEFINITIONS. For purposes of this Agreement, the
following terms (in addition to those defined above) have the meanings
indicated:

            (a) "Acquiring Person" shall mean any Person (as such term is
hereinafter defined) who or which, together with all Affiliates and Associates
(as such terms are hereinafter defined) of such Person, shall be the Beneficial
Owner (as such term is hereinafter defined) of 15% or more of the Common Shares
then outstanding, but shall not include (i) the Company, (ii) any Subsidiary (as
such term is hereinafter defined) of the Company, (iii) any employee benefit
plan of the Company or of any Subsidiary of the Company, (iv) any Person holding
Common Shares for or pursuant to the terms of any such plan to the extent, and
only to the extent, of the Common Shares so held or (v) so long as the terms and
conditions of the Stock Rights and Restrictions Agreement require that SLOPI and
any SLOPI Affiliate be excluded from the effects of this Agreement, SLOPI or any
SLOPI Affiliate. Notwithstanding the foregoing, no Person shall become an
"Acquiring Person" as the result of an acquisition of Common Shares by the
Company which, by reducing the number of shares outstanding, increases the
proportionate number of shares beneficially owned by such Person to 15% or more
of the Common Shares then outstanding; PROVIDED, HOWEVER, that if a Person
becomes the Beneficial Owner of 15% or more of the Common Shares then
outstanding by reason of share acquisitions by the Company and shall, after such
share acquisitions by the Company, become the Beneficial Owner of any additional
Common Shares, then such Person shall be deemed to be an "Acquiring Person".
Notwithstanding the foregoing, if the Board of Directors of the Company
determines in good faith that a Person who would otherwise be an "Acquiring
Person", as defined pursuant to the foregoing provisions of this Section 1(a),
has become such inadvertently, and such Person divests as promptly as
practicable a sufficient number of Common Shares so that such Person would no
longer be an "Acquiring Person", as defined pursuant to the foregoing provisions
of this Section 1(a), then such Person shall not be deemed to be an "Acquiring
Person" for any purposes of this Agreement.

                                    -1-

            (b) "Affiliate" and "Associate" shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under
the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as in
effect on the date of this Agreement.

            (c) A Person shall be deemed the "Beneficial Owner" of and shall be
deemed to "beneficially own" any securities:

                  (i) which such Person or any of such Person's Affiliates or
      Associates beneficially owns, directly or indirectly;

                  (ii) which such Person or any of such Person's Affiliates or
      Associates has the right to acquire (whether such right is exercisable
      immediately or only after the passage of time) pursuant to any written or
      oral agreement, arrangement or understanding (other than customary
      agreements with and between underwriters and selling group members with
      respect to a bona fide public offering of securities), or pursuant to the
      exercise of conversion rights, exchange rights, rights (other than the
      Rights), warrants or options, or otherwise; PROVIDED, HOWEVER, that a
      Person shall not be deemed the Beneficial Owner of, or to beneficially
      own, securities tendered pursuant to a tender or exchange offer made by or
      on behalf of such Person or any of such Person's Affiliates or Associates
      until such tendered securities are accepted for purchase or exchange;

                  (iii) which such Person or any of such Person's Affiliates or
      Associates has the right to vote or consent to action pursuant to any
      written or oral agreement, arrangement or understanding; PROVIDED,
      HOWEVER, that a Person shall not be deemed the Beneficial Owner of, or to
      beneficially own, any security if the agreement, arrangement or
      understanding to vote or consent to action such security (A) arises solely
      from a revocable proxy or consent given to such Person in response to a
      public proxy or consent solicitation made pursuant to, and in accordance
      with, the applicable rules and regulations promulgated under the Exchange
      Act and (B) is not also then reportable on Schedule 13D promulgated under
      the Exchange Act (or any comparable or successor report); or

                  (iv) which are beneficially owned, directly or indirectly, by
      any other Person with which such Person or any of such Person's Affiliates
      or Associates has any agreement, arrangement or understanding (other than
      customary agreements with and between underwriters and selling group
      members with respect to a bona fide public offering of securities) for the
      purpose of acquiring, holding, voting or consenting to action (except to
      the extent contemplated by the proviso to Section 1(c)(iii)) or disposing
      of any securities of the Company.

Notwithstanding the foregoing, any securities that are owned or held by the
Company, by any Subsidiary of the Company, or by any employee benefit plan of
the Company or of any Subsidiary of the Company, and any securities that are
owned or held by any Person pursuant to the terms of any such plan (to the
extent, and only to the extent, of the securities so held), shall not be deemed
to be beneficially owned by any other Person and no other Person shall be deemed
to be the Beneficial Owner of such securities.

                                    -2-

            (d) "Business Day" shall mean any day other than a Saturday, a
Sunday, or a day on which banking institutions in the State of Texas or the
State of New York are authorized or obligated by law or executive order to
close.

            (e) "close of business" on any given date shall mean 5:00 p.m.,
Houston time, on such date; PROVIDED, HOWEVER, that if such date is not a
Business Day it shall mean 5:00 p.m., Houston time, on the next succeeding
Business Day.

            (f) "Common Shares" when used with reference to the Company
(specifically or in context) shall mean the shares of common stock, par value
$0.01 per share, of the Company. "Common Shares" when used with reference to any
Person other than the Company shall mean the capital stock (or equity interest)
with the greatest voting power of such other Person or, if such other Person is
a Subsidiary of another Person, of the Person or Persons which ultimately
control such first-mentioned Person.

            (g) "Distribution Date" shall have the meaning set forth in Section
3 hereof.

            (h) "Final Expiration Date" shall have the meaning set forth in
Section 7 hereof.

            (i) "Person" shall mean any individual, firm, corporation,
incorporated or unincorporated association, limited liability company,
partnership or other entity, and shall include any successor (by merger or
otherwise) of any such Person.

            (j) "Preferred Shares" shall mean shares of Series B Preferred
Stock, par value $1.00 per share, of the Company having the rights and
preferences set forth in the form of the Statement of Resolution Establishing
Series of Shares attached to this Agreement as Exhibit A.

            (k) "Purchase Price" shall have the meaning set forth in Section 4
hereof, as the same may be adjusted from time to time in accordance with the
terms of this Agreement.

            (l) "Redemption Date" shall have the meaning set forth in Section 7
hereof.

            (m) "Shares Acquisition Date" shall mean the first date of public
announcement (which, for purposes of this definition, shall include, without
limitation, a report filed pursuant to Section 13(d) of the Exchange Act) by the
Company or an Acquiring Person that an Acquiring Person has become such.

            (n) "SLOPI" means Shell Louisiana Onshore Properties Inc., a
Delaware corporation.

            (o) "SLOPI Affiliate" shall mean any person directly or indirectly
controlling or controlled by or under direct or indirect common control with
SLOPI. Solely for the purposes of this definition, (i) "control" (including,
with correlative meanings, "controlling," "controlled by," and "under common
control with") means the power to direct or cause the direction of the
management and policies of such person, directly or indirectly, whether through
the ownership of

                                    -3-

voting securities, by contract, or otherwise and, with respect to a corporation
or partnership, control shall mean direct or indirect ownership of more than
fifty percent (50%) of the voting stock or general partnership interest or
voting interest in any such corporation or partnership and (ii) "person" shall
mean any individual, firm, partnership, association, group (as such term is
defined in Section 13(d)(3) of the Exchange Act, as in effect on the date of
this Agreement), corporation, trust, business trust or other entity, and
includes any successor (by merger or otherwise) of any such entity .

            (p) "Stock Rights and Restrictions Agreement" means the Stock Rights
and Restrictions Agreement dated as of June 30, 1998, between the Company and
SLOPI, as amended from time to time.

            (q) "Subsidiary" of any Person shall mean any corporation,
incorporated or unincorporated association, limited liability company,
partnership or other entity of which a majority of the voting power of the
voting equity securities or equity interest is owned, directly or indirectly, by
such Person.

      Any additional term used wholly within a subsequent Section of this
Agreement and defined therein shall have the meaning given it in such Section of
this Agreement for purposes of such Section.

      Section 2. APPOINTMENT OF RIGHTS AGENT. The Company hereby appoints the
Rights Agent to act as agent for the Company and the holders of the Rights (who,
in accordance with Section 3 hereof, shall prior to the Distribution Date also
be the holders of the Common Shares) in accordance with the terms and conditions
hereof, and the Rights Agent hereby accepts such appointment. The Company may
from time to time appoint such co-Rights Agents as it may deem necessary or
desirable.

      Section 3.  ISSUE OF RIGHT CERTIFICATES.

            (a) Until the earlier (the earlier of such dates being herein
referred to as the "Distribution Date") of (i) the close of business on the
tenth Business Day after the Shares Acquisition Date or (ii) the close of
business on the tenth Business Day after the date of the commencement by any
Person (other than the Company, any Subsidiary of the Company, any employee
benefit plan of the Company or of any Subsidiary of the Company, or any entity
holding Common Shares for or pursuant to the terms of any such plan to the
extent such entity is so acting with the approval or consent of the Company) of,
or of the first public announcement of the intention of any Person (other than
the Company, any Subsidiary of the Company, any employee benefit plan of the
Company or of any Subsidiary of the Company, or any entity holding Common Shares
for or pursuant to the terms of any such plan to the extent such entity is so
acting with the approval or consent of the Company) to commence, a tender or
exchange offer the consummation of which would result in any Person becoming the
Beneficial Owner of 15% or more of the Common Shares then outstanding, including
any such date that is after the date of this Agreement and prior to the issuance
of the Rights, (x) the Rights will be evidenced (subject to the provisions of
Section 3(b) hereof) by the certificates for Common Shares registered in the
names of the holders thereof (which certificates shall also be deemed to be
Right Certificates) and not by separate Right Certificates, and

                                    -4-

(y) the right to receive Right Certificates will be transferable only in
connection with the transfer of Common Shares. As soon as practicable after the
Distribution Date, the Company will prepare and execute, the Rights Agent will
countersign, and the Company will send or cause to be sent (and the Rights Agent
will, if requested, send), by first-class, insured, postage prepaid mail, to
each record holder of Common Shares as of the close of business on the
Distribution Date, at the address of such holder shown on the records of the
Company, a Right Certificate, in substantially the form of Exhibit B hereto (a
"Right Certificate"), evidencing one Right for each Common Share so held. As of
the Distribution Date, the Rights will be evidenced solely by such Right
Certificates.

            (b) As promptly as practicable following the Record Date, the
Company will send a copy of a Summary of Rights to Purchase Preferred Shares, in
substantially the form of Exhibit C hereto (the "Summary of Rights"), by
first-class, postage prepaid mail, to each record holder of Common Shares as of
the close of business on the Record Date, at the address of such holder shown on
the records of the Company. With respect to certificates for Common Shares
outstanding as of the Record Date, until the Distribution Date, the Rights
associated with the Common Shares represented by such certificates shall be
evidenced by such certificates together with a copy of the Summary of Rights
attached thereto. Until the Distribution Date (or the earlier of the Redemption
Date or the Final Expiration Date), the surrender for transfer of any
certificate for Common Shares outstanding on the Record Date, with or without a
copy of the Summary of Rights attached thereto, shall also constitute the
transfer of the Rights associated with the Common Shares represented thereby.

            (c) Certificates for Common Shares that become outstanding
(including, without limitation, reacquired Common Shares referred to in the last
sentence of this paragraph (c)) after the Record Date but prior to the earliest
of the Distribution Date, the Redemption Date or the Final Expiration Date shall
have impressed on, printed on, written on or otherwise affixed to them the
following legend:

            This certificate also evidences and entitles the holder hereof to
            certain rights as set forth in a Rights Agreement between The
            Meridian Resource Corporation and American Stock Transfer & Trust
            Co., dated as of May 5, 1999 (the "Rights Agreement"), the terms of
            which are hereby incorporated herein by reference and a copy of
            which is on file at the principal executive offices of The Meridian
            Resource Corporation. Under certain circumstances, as set forth in
            the Rights Agreement, the Rights described therein will be evidenced
            by separate certificates and will no longer be evidenced by this
            certificate. The Meridian Resource Corporation will mail to the
            holder of this certificate a copy of the Rights Agreement without
            charge after receipt of a written request therefor. As described in
            the Rights Agreement, Rights issued to any Person who becomes an
            Acquiring Person (as those terms are defined in the Rights
            Agreement) shall become null and void.

                                    -5-

With respect to such certificates containing the foregoing legend, until the
Distribution Date, the Rights associated with the Common Shares represented by
such certificates shall be evidenced by such certificates alone, and the
surrender for transfer of any such certificate shall also constitute the
transfer of the Rights associated with the Common Shares represented thereby. In
the event that the Company purchases or acquires any Common Shares after the
Record Date but prior to the Distribution Date, any Rights associated with such
Common Shares shall be deemed canceled and retired so that the Company shall not
be entitled to exercise any Rights associated with the Common Shares which are
no longer outstanding.

      Section 4. FORM OF RIGHT CERTIFICATES. The Right Certificates (and the
forms of election to purchase Preferred Shares and of assignment to be printed
on the reverse thereof) shall be in substantially the form of Exhibit B hereto
and may have such marks of identification or designation and such legends,
summaries or endorsements printed thereon as the Company may deem appropriate
and as are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any applicable law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any stock exchange on which
the Rights may from time to time be listed, or to conform to usage. Subject to
the provisions of this Agreement, including the provisions hereof relating to
the adjustment of the number of one one-thousandth interests in a Preferred
Share and the Purchase Price under specified circumstances, the Right
Certificates shall entitle the holders thereof to purchase such number of one
one-thousandth interests in a Preferred Share as shall be set forth therein at
the price per one one-thousandth interest in a Preferred Share set forth therein
(the "Purchase Price").

      Section 5. COUNTERSIGNATURE AND REGISTRATION. The Right Certificates shall
be executed on behalf of the Company by its Chairman of the Board of Directors,
its President or any Vice President, either manually or by facsimile signature,
shall have affixed thereto the Company's seal or a facsimile thereof, and shall
be attested by the Secretary or an Assistant Secretary of the Company, either
manually or by facsimile signature. The Right Certificates shall be manually
countersigned by the Rights Agent and shall not be valid for any purpose unless
countersigned. In case any officer of the Company who shall have signed any of
the Right Certificates shall cease to be such officer of the Company before
countersignature by the Rights Agent and issuance and delivery by the Company,
such Right Certificates, nevertheless, may be countersigned by the Rights Agent
and issued and delivered by the Company with the same force and effect as though
the person who signed such Right Certificates had not ceased to be such officer
of the Company; and any Right Certificate may be signed on behalf of the Company
by any person who, at the actual date of the execution of such Right
Certificate, shall be a proper officer of the Company to sign such Right
Certificate, although at the date of the execution of this Agreement any such
person was not such an officer.

      Following the Distribution Date, the Rights Agent will keep or cause to be
kept, at its principal office, books for registration and transfer of the Right
Certificates issued hereunder. Such books shall show the names and addresses of
the respective holders of the Right Certificates, the number of rights evidenced
on its face by each of the Right Certificates and the date of each of the Right
Certificates.

                                    -6-

      Section 6. TRANSFER, SPLIT UP, COMBINATION AND EXCHANGE OF RIGHT
CERTIFICATES; MUTILATED, DESTROYED, LOST OR STOLEN RIGHT CERTIFICATES. Subject
to the provisions of Section 14 hereof, at any time after the close of business
on the Distribution Date, and at or prior to the close of business on the
earlier of the Redemption Date or the Final Expiration Date, any Right
Certificate or Right Certificates (other than Right Certificates representing
Rights that have become void pursuant to Section 11(a)(ii) hereof or that have
been exchanged pursuant to Section 24 hereof) may be transferred, split up,
combined or exchanged for another Right Certificate or Right Certificates,
entitling the registered holder to purchase a like number of one one-thousandth
interests in a Preferred Share as the Right Certificate or Right Certificates
surrendered then entitled such holder to purchase. Any registered holder
desiring to transfer, split up, combine or exchange any Right Certificate or
Right Certificates shall make such request in writing delivered to the Rights
Agent and shall endorse and surrender the Right Certificate or Right
Certificates to be transferred, split up, combined or exchanged at the principal
office of the Rights Agent. Neither the Rights Agent nor the Company shall be
obligated to take any action whatsoever with respect to the transfer of any such
surrendered Right Certificate unless and until the registered holder shall have
(i) completed, executed and delivered a certificate contained in the form of
assignment set forth on the reverse side of such Right Certificate and (ii)
provided such additional evidence of the identity of the Beneficial Owner (or
former Beneficial Owner) or Affiliates or Associates thereof as the Company
shall have reasonably requested. Thereupon the Rights Agent shall countersign
and deliver to the person entitled thereto a Right Certificate or Right
Certificates, as the case may be, as so requested. The Company may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer, split up, combination or exchange of
Right Certificates.

      Upon receipt by the Company and the Rights Agent of evidence reasonably
satisfactory to them of the loss, theft, destruction or mutilation of a Right
Certificate, and, in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to them, and, at the Company's request,
reimbursement to the Company and the Rights Agent of all reasonable expenses
incidental thereto, and upon surrender to the Rights Agent and cancellation of
the Right Certificate if mutilated, the Company will make and deliver a new
Right Certificate of like tenor to the Rights Agent for delivery to the
registered holder in lieu of the Right Certificate so lost, stolen, destroyed or
mutilated.

      Section 7.  EXERCISE OF RIGHTS; PURCHASE PRICE; EXPIRATION DATE OF RIGHTS.

            (a) The registered holder of any Right Certificate may exercise the
Rights evidenced thereby (except as otherwise provided herein) in whole or in
part at any time, subject to the last sentence of Section 23(a) hereof, after
the Distribution Date upon surrender of the Right Certificate, with the form of
election to purchase on the reverse side thereof duly completed and executed, to
the Rights Agent at the principal office of the Rights Agent, together with
payment of the Purchase Price for each one one-thousandth interest in a
Preferred Share as to which the Rights are exercised, at or prior to the
earliest of (i) the close of business on May 5, 2009 (the "Final Expiration
Date"), (ii) the time at which the Rights are redeemed as provided in Section 23
hereof (the "Redemption Date"), or (iii) the time at which such Rights are
exchanged as provided in Section 24 hereof.

                                    -7-

            (b) The Purchase Price for each one one-thousandth interest in a
Preferred Share pursuant to the exercise of a Right shall initially be $30,
shall be subject to adjustment from time to time as provided in Sections 11 and
13 hereof, and shall be payable in lawful money of the United States of America
in accordance with paragraph (c) below.

            (c) Subject to the Company's rights under Section 11(a)(iii) hereof,
upon receipt of a Right Certificate representing exercisable Rights, with the
form of election to purchase duly executed, accompanied by payment of the
Purchase Price for the shares to be purchased (plus an amount equal to any
applicable transfer tax required to be paid by the holder of such Right
Certificate in accordance with Section 9 hereof) by certified check, cashier's
check or money order payable to the order of the Company, the Rights Agent shall
thereupon promptly (i) (A) requisition from any transfer agent of the Preferred
Shares certificates for the number of Preferred Shares to be purchased, and the
Company hereby irrevocably authorizes and directs its transfer agent to comply
with all such requests, or (B) requisition from the depositary agent (if one
exists as hereinafter contemplated) depositary receipts representing such number
of one one-thousandth interests in a Preferred Share as are to be purchased (in
which case certificates for the Preferred Shares represented by such receipts
shall be deposited by the transfer agent of the Preferred Shares with the
depositary agent), and the Company hereby directs the depositary agent to comply
with all such requests, (ii) when appropriate, requisition from the Company the
amount of cash to be paid in lieu of issuance of fractional shares in accordance
with Section 14 hereof, and, if applicable, requisition from the Company, and/or
any transfer agent for securities thereof (any such transfer agent being hereby
authorized to comply with all such requests), the number of Common Shares to be
issued in lieu of the issuance of Preferred Shares in accordance with Section
11(a)(ii) or the amount of cash, property or other securities to be paid or
issued in lieu of the issuance of Common Shares in accordance with Section
11(a)(iii), (iii) after receipt of such certificates or depositary receipts,
cause the same to be delivered to or upon the order of the registered holder of
such Right Certificate, registered in such name or names as may be designated by
such holder, and (iv) when appropriate in accordance with Section 11(a)(iii)
hereof, after receipt, deliver such cash, property or other securities to or
upon the order of the registered holder of such Right Certificate.

            (d) In case the registered holder of any Right Certificate shall
exercise less than all the Rights evidenced thereby, a new Right Certificate
evidencing Rights equivalent to the Rights remaining unexercised shall be issued
by the Rights Agent to the registered holder of such Right Certificate or to
such holder's duly authorized assigns, subject to the provisions of Section 14
hereof.

            (e) Subject to the Company's rights under Section 11(a)(iii) hereof
to otherwise fulfill its obligations, the Company covenants and agrees that it
will cause to be kept available out of its authorized and unissued Preferred
Shares, the number of Preferred Shares that will be sufficient to permit the
exercise in full of all outstanding Rights in accordance with this Section 7.

            (f) Notwithstanding anything in this Agreement to the contrary,
neither the Rights Agent nor the Company shall be obligated to undertake any
action whatsoever with respect to a purported exercise of any Right as
contemplated by this Section 7 unless and until such registered holder shall
have (i) completed, executed and delivered a certificate contained in the form
of election to purchase set forth on the reverse side of the Right Certificate
surrendered in connection with such

                                    -8-

exercise and (ii) provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
thereof as the Company shall have reasonably requested.

      Section 8. CANCELLATION AND DESTRUCTION OF RIGHT CERTIFICATES. All Right
Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall, if surrendered to the Company or to any of its
agents, be delivered to the Rights Agent for cancellation or in canceled form,
or, if surrendered to the Rights Agent, shall be canceled by it, and no Right
Certificates shall be issued in lieu thereof except as expressly permitted by
any of the provisions of this Agreement. The Company shall deliver to the Rights
Agent for cancellation and retirement, and the Rights Agent shall so cancel and
retire, any Right Certificate representing Rights purchased or acquired by the
Company otherwise than upon the exercise thereof. The Rights Agent shall deliver
all canceled Right Certificates to the Company, or shall, at the written request
of the Company, destroy such canceled Right Certificates, and in such case shall
deliver a certificate of destruction thereof to the Company.

      Section 9. AVAILABILITY OF PREFERRED SHARES; TRANSFER TAXES; EXCHANGE
LISTING; SECURITIES REGISTRATION. The Company covenants and agrees that it will
take all such action as may be necessary to ensure that all Preferred Shares
delivered upon exercise of Rights shall, at the time of delivery of the
certificates for such Preferred Shares (subject to payment of the Purchase
Price), be duly authorized and validly issued and fully paid and nonassessable
shares.

      The Company further covenants and agrees that it will pay when due and
payable any and all federal and state transfer taxes and charges which are
payable in respect of the issuance or delivery of the Right Certificates or of
any Preferred Shares (or other securities which may become or be issuable under
the terms of this Agreement) upon the exercise of Rights. The Company shall not,
however, be required to pay any transfer tax which may be payable in respect of
any transfer or delivery of Right Certificates to a Person other than, or the
issuance or delivery of certificates or depositary receipts for the Preferred
Shares (or other securities which may become or be issuable under the terms of
this Agreement) in a name other than that of, the registered holder of the Right
Certificates evidencing Rights surrendered for transfer, delivery or exercise or
to issue or to deliver any certificates or depositary receipts for Preferred
Shares (or other securities which may become or be issuable under the terms of
this Agreement) upon the exercise of any Rights until any such tax shall have
been paid (any such tax being payable by the holder of such Right Certificates
at the time of surrender) or until it has been established to the Company's
reasonable satisfaction that no such tax is due.

      The Company shall (i) prepare and file, upon, or as soon as possible
following, the Distribution Date, a registration statement under the Securities
Act of 1933 (the "Act") with respect to the securities purchasable upon exercise
of the Rights on an appropriate form, (ii) cause such registration statement to
become effective as soon as possible after such filing, and (iii) cause such
registration statement to remain effective (with a prospectus at all times
meeting the requirements of the Act) until no longer required to do so under the
Act with respect to securities purchasable upon exercise of the Rights. The
Company will also take all such action as may be required or as

                                    -9-

is appropriate under the securities or blue sky laws of such jurisdictions as
may be necessary or appropriate with respect to the securities purchasable upon
the exercise of the Rights.

      Section 10. PREFERRED SHARES RECORD DATE. Each Person in whose name any
certificate for Preferred Shares is issued upon the exercise of Rights shall for
all purposes be deemed to have become the holder of record of the Preferred
Shares represented thereby on, and such certificate shall be dated, the date
upon which the Right Certificate evidencing such Rights was duly surrendered and
payment of the Purchase Price (and any applicable transfer taxes) was made;
PROVIDED, HOWEVER, that if the date of such surrender and payment is a date upon
which the Preferred Shares transfer books of the Company are closed, such person
shall be deemed to have become the record holder of such shares on, and such
certificate shall be dated, the next succeeding Business Day on which the
Preferred Shares transfer books of the Company are open.

      Section 11. ADJUSTMENT OF PURCHASE PRICE, NUMBER OF SHARES OR NUMBER OF
RIGHTS. The Purchase Price, the number of Preferred Shares or interests therein
that the holder of a Right Certificate is entitled to purchase on the exercise
of the Rights evidenced thereby and the number of Rights outstanding are subject
to adjustment from time to time as provided in this Section 11.

            (a) (i) In the event the Company shall at any time after the date of
      this Agreement (A) declare a dividend on the Preferred Shares payable in
      Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C)
      combine the outstanding Preferred Shares into a smaller number of
      Preferred Shares or (D) issue any shares of its capital stock in a
      reclassification of the Preferred Shares (including any such
      reclassification in connection with a consolidation or merger in which the
      Company is the continuing or surviving corporation), except as otherwise
      provided in this Section 11(a), the Purchase Price in effect at the time
      of the record date for such dividend or at the effective date of such
      subdivision, combination or reclassification, and the number and kind of
      shares of capital stock or interests therein issuable on such date, shall
      be proportionately adjusted so that the holder of any Right exercised
      after such time shall be entitled to receive the aggregate number and kind
      of shares of capital stock or interests therein which, if such Right had
      been exercised immediately prior to such date and at a time when the
      Preferred Shares transfer books of the Company were open, such holder
      would have owned upon such exercise and been entitled to receive by virtue
      of such dividend, subdivision, combination or reclassification. If an
      event occurs which would require an adjustment under both this Section
      11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this
      Section 11(a)(i) shall be in addition to, and shall be made prior to, any
      adjustment required pursuant to Section 11(a)(ii) hereof.

                  (ii) Subject to Sections 23 and 24 of this Agreement, in the
      event any Person shall become an Acquiring Person, proper provision shall
      be made so that each holder of a Right shall thereafter have a right to
      receive, upon exercise thereof in accordance with Section 7 hereof at a
      price equal to the then current Purchase Price multiplied by the number of
      one one-thousandth interests in a Preferred Share for which a Right is
      then exercisable, in accordance with the terms of this Agreement and in
      lieu of interests in Preferred Shares, such number of Common Shares as
      shall equal the result obtained by (A) multiplying the

                                    -10-

      then current Purchase Price by the number of one one-thousandth interests
      in a Preferred Share for which a Right is then exercisable and dividing
      that product by (B) 50% of the then current per share market price of the
      Company's Common Shares (determined pursuant to Section 11(d) hereof) on
      the date such Person became an Acquiring Person.

            Notwithstanding the foregoing or anything in this Agreement to the
      contrary, from and after the time any Person becomes an Acquiring Person,
      any Rights that are or were acquired or beneficially owned by such
      Acquiring Person (or any Associate or Affiliate of such Acquiring Person)
      shall be null and void without any further action by the Company, the
      Rights Agent, the Acquiring Person or any other Person, and any holder of
      such Rights shall thereafter have no rights whatsoever with respect to
      such Rights, whether under this Agreement (including the right to exercise
      such Rights under any provision of this Agreement) or otherwise. No Right
      Certificate shall be issued pursuant to Section 3 that represents Rights
      beneficially owned by an Acquiring Person whose Rights would be void
      pursuant to the preceding sentence or by any Associate or Affiliate
      thereof; no Right Certificate shall be issued at any time upon the
      transfer of any Rights to an Acquiring Person whose Rights would be void
      pursuant to the preceding sentence or to any Associate or Affiliate
      thereof or to any nominee of such Acquiring Person, Associate or
      Affiliate; and any Right Certificate delivered to the Rights Agent for
      transfer to an Acquiring Person whose Rights would be void pursuant to the
      preceding sentence shall be canceled.

                  (iii) In lieu of issuing Common Shares in accordance with
      Section 11(a)(ii) hereof, the Company may, if the Board of Directors
      determines that such action is necessary or appropriate, elect to issue or
      pay, upon the exercise of the Rights, cash, property, Common Shares,
      shares of preferred stock, notes, debentures or other securities, or any
      combination thereof (collectively "substitute consideration"), having an
      aggregate value equal to the value of the Common Shares which otherwise
      would have been issuable pursuant to Section 11(a)(ii), which value of
      such substitute consideration shall be determined by a nationally
      recognized investment banking firm selected by the Board of Directors;
      PROVIDED, HOWEVER, that, except as provided in the second and third
      sentences of subparagraph (ii) of this paragraph (a), each holder of a
      Right must receive the same consideration upon the exercise of a Right.
      For purposes of this subparagraph (iii) the value of Common Shares shall
      be as determined pursuant to Section 11(d) hereof and the value of any
      preferred stock or other securities comprising all or part of the
      substitute consideration which the Board of Directors determines to be the
      substantial equivalent of Common Shares shall be deemed to have the same
      value as the Common Shares.

                  (iv) Subject to subparagraph (iii) of this paragraph (a), in
      the event that there shall not be sufficient Common Shares issued but not
      outstanding or authorized but unissued to permit the exercise in full of
      the Rights in accordance with subparagraph (ii) of this paragraph (a), the
      Company shall take all such action as may be necessary to authorize
      additional Common Shares for issuance upon exercise of the Rights or, if
      unable to do so, shall take action permitted by subparagraph (iii) of this
      paragraph (a) in respect of substitute consideration in order to satisfy
      fully its obligations to a holder of Rights exercising such Rights as
      contemplated hereby.

                                    -11-

            (b) In case the Company shall fix a record date for the issuance of
rights, options or warrants to all holders of Preferred Shares entitling them
(for a period expiring within 45 calendar days after such record date) to
subscribe for or purchase Preferred Shares (or shares having the same rights,
privileges and preferences as the Preferred Shares ("equivalent preferred
shares")) or securities convertible into Preferred Shares or equivalent
preferred shares at a price per Preferred Share or equivalent preferred share
(or having a conversion price per share, if a security convertible into
Preferred Shares or equivalent preferred shares) less than the then current per
share market price of the Preferred Shares (as defined in Section 11(d)) on such
record date, the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such
record date by a fraction, the numerator of which shall be the number of
Preferred Shares outstanding on such record date plus the number of Preferred
Shares which the aggregate offering price of the total number of Preferred
Shares and/or equivalent preferred shares so to be offered (and/or the aggregate
initial conversion price of the convertible securities so to be offered) would
purchase at such current market price and the denominator of which shall be the
number of Preferred Shares outstanding on such record date plus the number of
additional Preferred Shares and/or equivalent preferred shares to be offered for
subscription or purchase (or into which the convertible securities so to be
offered are initially convertible). In case such subscription price may be paid
in a consideration part or all of which shall be in a form other than cash, the
value of such consideration shall be as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement
filed with the Rights Agent. Preferred Shares owned by or held for the account
of the Company shall not be deemed outstanding for the purpose of any such
computation. Such adjustments shall be made successively whenever such a record
date is fixed; and in the event that such rights, options or warrants are not so
issued, the Purchase Price shall be adjusted to be the Purchase Price which
would then be in effect if such record date had not been fixed.

            (c) In case the Company shall fix a record date for the making of a
distribution to all holders of the Preferred Shares (including any such
distribution made in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation) of evidences of indebtedness
or assets (other than a regular quarterly cash dividend paid out of earnings or
retained earnings or a dividend payable in Preferred Shares) or subscription
rights or warrants (excluding those referred to in Section 11(b) hereof), the
Purchase Price to be in effect after such record date shall be determined by
multiplying the Purchase Price in effect immediately prior to such record date
by a fraction, the numerator of which shall be the then current per share market
price of the Preferred Shares on such record date, less the fair market value
(as determined in good faith by the Board of Directors of the Company, whose
determination shall be described in a statement filed with the Rights Agent) of
the portion of the assets or evidences of indebtedness so to be distributed or
of such subscription rights or warrants applicable to one Preferred Share and
the denominator of which shall be such current per share market price of the
Preferred Shares. Such adjustments shall be made successively whenever such a
record date is fixed; and in the event that such distribution is not so made,
the Purchase Price shall again be adjusted to be the Purchase Price which would
then be in effect if such record date had not been fixed.

            (d) (i) For the purpose of any computation hereunder, the "current
      per share market price" of any security (a "Security" for the purpose of
      this Section 11(d)(i)) on any

                                    -12-

      date shall be deemed to be the average of the daily closing prices per
      share of such Security for the 30 consecutive Trading Days (as such term
      is hereinafter defined) immediately prior to such date; PROVIDED, HOWEVER,
      that in the event that the current per share market price of the Security
      is determined during a period following the announcement by the issuer of
      such Security of (A) a dividend or distribution on such Security payable
      in shares of such Security or securities convertible into such shares, or
      (B) any subdivision, combination or reclassification of such Security and
      prior to the expiration of 30 Trading Days after the ex-dividend date for
      such dividend or distribution, or the record date for such subdivision,
      combination or reclassification, then, and in each such case, the current
      per share market price shall be appropriately adjusted to reflect the
      current market price per share equivalent of such Security taking into
      account ex-dividend trading. The closing price for each day shall be the
      last sale price, regular way, or, in case no such sale takes place on such
      day, the average of the closing bid and asked prices, regular way, in
      either case as reported in the principal consolidated transaction
      reporting system with respect to securities listed or admitted to trading
      on the New York Stock Exchange or, if the Security is not listed or
      admitted to trading on the New York Stock Exchange, as reported in the
      principal consolidated transaction reporting system with respect to
      securities listed on the principal national securities exchange on which
      the Security is listed or admitted to trading or, if the Security is not
      listed or admitted to trading on any national securities exchange, the
      last quoted sales price or, if not so quoted, the average of the high bid
      and low asked prices in the over-the-counter market, as reported by the
      National Association of Securities Dealers, Inc. Automated Quotations
      System ("NASDAQ") or such other system then in use or, if on any such date
      the Security is not quoted by any such organization, the average of the
      closing bid and asked prices as furnished by a professional market maker
      making a market in the Securities selected by the Board of Directors of
      the Company. The term "Trading Day" shall mean a day on which the
      principal national securities exchange on which the Security is listed or
      admitted to trading is open for the transaction of business or, if the
      Security is not listed or admitted to trading on any national securities
      exchange, a Business Day.

                  (ii) For the purpose of any computation hereunder, the
      "current per share market price" of the Preferred Shares shall be
      determined in accordance with the methods set forth in Section 11(d)(i).
      If the Preferred Shares are not publicly traded, the "current per share
      market price" of the Preferred Shares shall be conclusively deemed to be
      the current per share market price of the Common Shares as determined
      pursuant to Section 11(d)(i) (appropriately adjusted to reflect any stock
      split, stock dividend or similar transaction occurring after the date
      hereof), multiplied by one thousand. If neither the Common Shares nor the
      Preferred Shares are publicly held or so listed or traded, and no market
      maker is making, or has made during the relevant period, a market in the
      Common Shares or the Preferred Shares, "current per share market price"
      shall mean the fair value per share as determined in good faith by the
      Board of Directors of the Company, whose determination shall be described
      in a statement filed with the Rights Agent.

            (e) No adjustment in the Purchase Price shall be required unless
such adjustment would require an increase or decrease of at least 1% in the
Purchase Price; PROVIDED, HOWEVER, that any adjustments which by reason of this
Section 11(e) are not required to be made shall be carried

                                    -13-

forward and taken into account in any subsequent adjustment. All calculations
under this Section 11 shall be made to the nearest cent or to the nearest one
ten-millionth interest in a Preferred Share or one ten-thousandth interest in
any other share or security, as the case may be. Notwithstanding the first
sentence of this Section 11(e), any adjustment required by this Section 11 shall
be made no later than the earlier of (i) three years from the date of the
transaction which requires such adjustment or (ii) the date of the expiration of
the right to exercise any Rights.

            (f) If as a result of an adjustment made pursuant to Section 11(a)
or Section 13(a) hereof, the holder of any Right thereafter exercised shall
become entitled to receive any shares of capital stock of the Company other than
Preferred Shares or interests therein, thereafter the number of such other
shares so receivable upon exercise of any Right shall be subject to adjustment
from time to time in a manner and on terms as nearly equivalent as practicable
to the provisions of this Section 11 with respect to the Preferred Shares and
the provisions of Sections 7, 9, 10, 12, 13 and 14 with respect to the Preferred
Shares shall apply on like terms to any such other shares.

            (g) All Rights originally issued by the Company subsequent to any
adjustment made to the Purchase Price hereunder shall evidence the right to
purchase, at the adjusted Purchase Price, the number of one one-thousandth
interests in a Preferred Share purchasable from time to time hereunder upon
exercise of the Rights, all subject to further adjustment as provided herein.

            (h) Unless the Company shall have exercised its election as provided
in Section 11(i), upon each adjustment of the Purchase Price as a result of the
calculations made in Sections 11(b) and (c), each Right outstanding immediately
prior to the making of such adjustment shall thereafter evidence the right to
purchase, at the adjusted Purchase Price, that number of one one-thousandth
interests in a Preferred Share (calculated to the nearest one ten-millionth of a
Preferred Share) obtained by (i) multiplying (A) the number of one
one-thousandth interests in a Preferred Shares covered by a Right immediately
prior to such adjustment by (B) the Purchase Price in effect immediately prior
to such adjustment of the Purchase Price and (ii) dividing the product so
obtained by the Purchase Price in effect immediately after such adjustment of
the Purchase Price.

            (i) The Company may elect on or after the date of any adjustment of
the Purchase Price to adjust the number of Rights, in substitution for any
adjustment in the number of one one-thousandth interests in a Preferred Share
purchasable upon the exercise of a Right. Each of the Rights outstanding after
such adjustment of the number of Rights shall be exercisable for the number of
one one-thousandth interests in a Preferred Share for which a Right was
exercisable immediately prior to such adjustment. Each Right held of record
prior to such adjustment of the number of Rights shall become that number of
Rights (calculated to the nearest one ten-thousandth) obtained by dividing the
Purchase Price in effect immediately prior to adjustment of the Purchase Price
by the Purchase Price in effect immediately after adjustment of the Purchase
Price. The Company shall make a public announcement of its election, if any, to
adjust the number of Rights, indicating the record date for the adjustment and,
if known at the time, the amount of the adjustment to be made. Such record date
may be the date on which the Purchase Price is adjusted or any date thereafter,
but, if the Right Certificates have been issued, shall be at least 10 days later
than the date of the public announcement. If Right Certificates have been
issued, upon each adjustment of the number of Rights pursuant to this Section
11(i), the Company shall, as promptly as practicable, cause to be

                                    -14-

distributed to holders of record of Right Certificates on such record date Right
Certificates evidencing, subject to Section 14 hereof, the additional Rights to
which such holders shall be entitled as a result of such adjustment, or, at the
option of the Company, shall cause to be distributed to such holders of record
in substitution and replacement for the Right Certificates held by such holders
prior to the date of adjustment, and upon surrender thereof, if required by the
Company, new Right Certificates evidencing all the Rights to which such holders
shall be entitled after such adjustment. Right Certificates so to be distributed
shall be issued, executed and countersigned in the manner provided for herein
and shall be registered in the names of the holders of record of Right
Certificates on the record date specified in the public announcement.

            (j) Irrespective of any adjustment or change in the Purchase Price
or the number of one one-thousandth interests in a Preferred Share issuable upon
the exercise of the Rights, the Right Certificates theretofore and thereafter
issued may continue to express the Purchase Price and the number of one
one-thousandth interests in a Preferred Shares which were expressed in the
initial Right Certificates issued hereunder.

            (k) Before taking any action that would cause an adjustment reducing
the Purchase Price below one one-thousandth of then par value, if any, of the
Preferred Shares issuable upon exercise of the Rights, the Company shall take
any corporate action which may, in the opinion of its counsel, be necessary in
order that the Company may validly and legally issue fully paid and
nonassessable Preferred Shares at such adjusted Purchase Price.

            (l) In any case in which this Section 11 shall require that an
adjustment in the Purchase Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event the issuance to the holder of any Right exercised after such record date
of the Preferred Shares and other capital stock or securities of the Company, if
any, issuable upon such exercise over and above the Preferred Shares and other
capital stock or securities of the Company, if any, issuable upon such exercise
on the basis of the Purchase Price in effect prior to such adjustment; PROVIDED,
HOWEVER, that the Company shall deliver to such holder a due bill or other
appropriate instrument evidencing such holder's right to receive such additional
shares upon the occurrence of the event requiring such adjustment.

            (m) Anything in this Section 11 to the contrary notwithstanding, the
Company shall be entitled to make such reductions in the Purchase Price, in
addition to those adjustments expressly required by this Section 11, as and to
the extent that the Company in its sole discretion shall determine to be
advisable in order that any consolidation or subdivision of the Preferred
Shares, issuance wholly for cash of any Preferred Shares at less than the
current market price, issuance wholly for cash of Preferred Shares or securities
which by their terms are convertible into or exchangeable for Preferred Shares,
dividends on Preferred Shares payable in Preferred Shares or issuance of rights,
options or warrants referred to in Section 11(b) hereafter made by the Company
to holders of Preferred Shares shall not be taxable to such stockholders.

            (n) In the event that at any time after the date of this Agreement
and prior to the Distribution Date, the Company shall (i) declare or pay any
dividend on the Common Shares payable in Common Shares, (ii) reclassify the
Common Shares, or (iii) otherwise effect a split-up, division

                                    -15-

or combination of the Common Shares, then in any such case (i) the number of one
one-thousandth interests in a Preferred Share purchasable after such event upon
proper exercise of each Right shall be determined by multiplying the number of
one one-thousandth interests in a Preferred Share so purchasable immediately
prior to such event by a fraction, the numerator of which shall be the number of
Common Shares that were outstanding immediately before such event and the
denominator of which shall be the number of Common Shares that are outstanding
immediately after such event, and (ii) each Common Share outstanding immediately
after such event shall have issued with respect to it that number of Rights
which each Common Share outstanding immediately prior to such event had issued
with respect to it. The adjustments provided for in this Section 11(n) shall be
made successively whenever any such event occurs.

            (o) The Company covenants and agrees that, after the Distribution
Date, it will not, except as permitted by Section 23, Section 24 or Section 27
hereof, take (or permit any Subsidiary to take) any action if, at the time such
action is taken, it is reasonably foreseeable that such action will diminish in
any material manner or otherwise eliminate the benefits intended to be afforded
by the Rights.

      Section 12. CERTIFICATE OF ADJUSTED PURCHASE PRICE OR NUMBER OF SHARES.
Whenever an adjustment is made as provided in Sections 11 or 13 hereof, the
Company shall promptly (a) prepare a certificate setting forth such adjustment
and a brief statement of the facts accounting for such adjustment, (b) file with
the Rights Agent and with each transfer agent for the Common Shares or the
Preferred Shares a copy of such certificate and (c) mail a brief summary thereof
to each holder of a Right Certificate in accordance with Section 25 hereof.

      Section 13. CONSOLIDATION, MERGER OR SALE OR TRANSFER OF ASSETS OR EARNING
POWER.

            (a) In the event, directly or indirectly, (i) the Company shall
consolidate with, merge with and into, or effect a share exchange or conversion
with or into any Person, (ii) any Person shall merge with and into the Company
or effect a share exchange or conversion with or into the Company, the Company
shall be the continuing or surviving corporation in such transaction and, in
connection with such transaction, all or part of the Common Shares shall be
changed into or exchanged for stock or other securities of any Person (including
the Company) or cash or any other property, or (iii) the Company shall sell or
otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise
transfer), in one or more transactions, assets or earning power aggregating 50%
or more of the assets or earning power of the Company and its Subsidiaries
(taken as a whole) to any Person or Persons other than the Company or one or
more of its wholly-owned Subsidiaries, then, and in each such case, proper
provision shall be made so that (i) each holder of a Right (except as otherwise
provided herein) shall thereafter have the right to receive, upon the exercise
thereof at a price equal to the then current Purchase Price multiplied by the
number of one one-thousandth interests in a Preferred Share for which a Right is
then exercisable, in accordance with the terms of this Agreement and in lieu of
Preferred Shares, such number of duly authorized and validly issued, fully paid
and non-assessable Common Shares of the Principal Party (as defined in Section
13(b) hereof) as shall equal the result obtained by (A) multiplying the then
current Purchase Price by the number of one one-thousandth interests in a
Preferred Share for which a Right is then exercisable and dividing that product
by (B) 50% of the then current per share market price of the Common

                                    -16-

Shares of the Principal Party (determined pursuant to Section 11(d) hereof) on
the date of consummation of such transaction; (ii) the Principal Party shall
thereafter be liable for, and shall assume, by virtue of such transaction, all
the obligations and duties of the Company pursuant to this Agreement; (iii) the
term "Company", as used in this Agreement, shall thereafter be deemed to mean
the Principal Party; and (iv) such Principal Party shall take such steps
(including, but not limited to, the reservation of a sufficient number of its
Common Shares in accordance with this Agreement) in connection with such
consummation as may be necessary to assure that the provisions hereof shall
thereafter be applicable, as nearly as reasonably may be, in relation to the
Common Shares of the Principal Party thereafter deliverable upon the exercise of
the Rights. The Company shall not consummate any such transaction unless prior
thereto the Company and the Principal Party shall have executed and delivered to
the Rights Agent a supplemental agreement so providing and further providing
that, immediately after the date of any such transaction mentioned in this
paragraph (a) of this Section 13, the Principal Party at its own expense will
(i) prepare and file a registration statement under the Act with respect to the
Rights and the securities purchasable upon exercise of the Rights on an
appropriate form, will cause such registration statement to become effective as
soon as possible after such filing and will cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of the
Act) until no longer required under the Act with respect to securities
purchasable upon exercise of the Rights; and (ii) qualify or register the Rights
and the securities purchasable upon exercise of the Rights, and take all such
other action as may be required or as is appropriate, under the securities or
blue sky laws of such jurisdictions as may be necessary or appropriate. The
Company shall not enter into any transaction of the kind referred to in this
Section 13 if at the time of such transaction there are any rights, warrants,
instruments or securities outstanding or any agreements or arrangements which,
as a result of the consummation of such transaction, would eliminate or
substantially diminish the benefits intended to be afforded by the Rights. The
provisions of this Section 13 shall similarly apply to successive mergers,
consolidations, exchanges, conversions, sales or other transfers.

            (b)   "Principal Party" shall mean

                  (i) in the case of any transaction described in clause (i) or
      (ii) of the first sentence of Section 13(a), the Person that is the issuer
      of any securities into which Common Shares are converted in such
      transaction, and if no securities are so issued, the Person that is the
      other party to the transaction; and

                  (ii) in the case of any transaction described in clause (iii)
      of the first sentence in Section 13(a), the Person that is the party
      receiving the greatest portion of the assets or earning power transferred
      pursuant to such transaction or transactions;

PROVIDED, HOWEVER, that in any such case, (1) if the securities of such Person
are not at such time or have not been continuously over the preceding 12-month
period registered under Section 12 of the Exchange Act, and such Person is a
direct or indirect Subsidiary of another Person the securities of which are and
have been so registered, "Principal Party" shall mean such other Person; (2) in
case such Person is a Subsidiary, directly or indirectly, of more than one other
Person, the securities of two or more of which are and have been so registered,
"Principal Party" shall mean whichever of such other Persons is the issuer of
the securities so registered having the greatest aggregate market

                                    -17-

value; and (3) in case such Person is owned, directly or indirectly, by a joint
venture formed by two or more other Persons that are not owned, directly or
indirectly, by the same Person, the rules set forth in (1) and (2) above shall
apply to each of the chains of ownership having an interest in such joint
venture as if such Person were a "Subsidiary" of both or all of such other
Persons and the Principal Parties in each such chain shall bear the obligations
set forth in this Section 13 in the same ratio as their direct and indirect
interests in such Person bear to the total of such interests; and PROVIDED,
FURTHER, so long as the terms and conditions of the Stock Rights and
Restrictions Agreement require that SLOPI and any SLOPI Affiliate be excluded
from the effects of this Agreement, the term "Person" and "Principal Party", as
used in this Section 13 only, shall not include SLOPI or any SLOPI Affiliate.

      Section 14. FRACTIONAL RIGHTS AND FRACTIONAL SHARES.

            (a) The Company shall not be required to issue fractions of Rights
or to distribute Right Certificates which evidence fractional Rights. In lieu of
such fractional Rights, there shall be paid to the registered holders of the
Right Certificates with regard to which such fractional Rights would otherwise
be issuable, an amount in cash equal to the same fraction of the current market
value of a whole Right. For purposes of this Section 14(a), the current market
value of a whole Right shall be the closing price of the Rights for the Trading
Day immediately prior to the date on which such fractional Rights would
otherwise be issuable. The closing price for any day shall be the last sale
price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with respect
to securities listed or admitted to trading on the New York Stock Exchange or,
if the Rights are not listed or admitted to trading on the New York Stock
Exchange, as reported in the principal consolidated transaction reporting system
with respect to securities listed on the principal national securities exchange
on which the Rights are listed or admitted to trading or, if the Rights are not
listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by NASDAQ or such other
system then in use or, if on any such date the Rights are not quoted by any such
organization, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in the Rights selected by the Board of
Directors of the Company. If on any such date no such market maker is making a
market in the Rights, the fair value of the Rights on such date as determined in
good faith by the Board of Directors of the Company shall be used to determine
the current market value of a Right for purposes of this Section 14(a).
Notwithstanding anything in this Section 14(a) to the contrary, prior to the
Distribution Date, the current market value of the Right for purposes of this
Section 14(a) shall be deemed to be zero.

            (b) The Company shall not be required to issue fractional interests
in Preferred Shares (other than fractional interests which are integral
multiples of one one-thousandth of a Preferred Share) upon exercise of the
Rights or to distribute certificates which evidence fractional interests in
Preferred Shares (other than fractional interests which are integral multiples
of one one-thousandth of a Preferred Share). Fractional interests in Preferred
Shares in integral multiples of one one-thousandth of a Preferred Share may, at
the election of the Company, be evidenced by depositary receipts, pursuant to an
appropriate agreement between the Company and a depositary

                                    -18-

selected by it; PROVIDED, HOWEVER, that such agreement shall provide that
holders of such depositary receipts shall have all the rights, privileges and
preferences to which they are entitled as beneficial owners of the Preferred
Shares represented by such depositary receipts. In lieu of fractional interests
in Preferred Shares that are not integral multiples of one one-thousandth of a
Preferred Share, the Company shall pay to the registered holders of Right
Certificates at the time such Rights are exercised as herein provided an amount
in cash equal to the same fraction of the current market value of one Preferred
Share. For purposes of this Section 14(b), the current market value of a
Preferred Share shall be the closing price of a Preferred Share (as determined
pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day
immediately prior to the date of such exercise.

            (c) The holder of a Right by the acceptance of the Right expressly
waives his right to receive any fractional Rights or any fractional shares upon
exercise of a Right (except as provided above).

      Section 15. RIGHTS OF ACTION. All rights of action in respect of this
Agreement, excepting the rights of action given to the Rights Agent under
Section 18 and Section 20 hereof, are vested in the respective registered
holders of the Right Certificates (and, prior to the Distribution Date, the
registered holders of the Common Shares); and any registered holder of any Right
Certificate (or, prior to the Distribution Date, of the Common Shares), without
the consent of the Rights Agent or of the holder of any other Right Certificate
(or, prior to the Distribution Date, of the Common Shares), may, in his own
behalf and for his own benefit, enforce, and may institute and maintain any
suit, action or proceeding against the Company to enforce, or otherwise act in
respect of, such holder's right to exercise the Rights evidenced by such Right
Certificate in the manner provided in such Right Certificate and in this
Agreement. Without limiting the foregoing or any remedies available to the
holders of Rights, it is specifically acknowledged that the holders of Rights
would not have an adequate remedy at law for any breach of this Agreement and
will be entitled to specific performance of the obligations under, and
injunctive relief against actual or threatened violations of the obligations of
any Person subject to, this Agreement.

      Section 16. AGREEMENT OF RIGHT HOLDERS. Every holder of a Right, by
accepting the same, consents and agrees with the Company and the Rights Agent
and with every other holder of a Right that:

            (a) prior to the Distribution Date, the Rights will be transferable
only in connection with the transfer of the Common Shares;

            (b) after the Distribution Date, the Right Certificates are
transferable only on the registry books of the Rights Agent if surrendered at
the principal office of the Rights Agent, duly endorsed or accompanied by a
proper instrument of transfer; and

            (c) the Company and the Rights Agent may deem and treat the Person
in whose name any Right Certificate (or, prior to the Distribution Date, the
associated Common Shares certificate) is registered as the absolute owner
thereof and of the Rights evidenced thereby (notwithstanding any notations of
ownership or writing on the Right Certificates or the associated Common Shares
certificate made by anyone other than the Company or the Rights Agent) for all

                                    -19-

purposes whatsoever, and neither the Company nor the Rights Agent shall be
affected by any notice to the contrary.

      Section 17. RIGHT CERTIFICATE HOLDER NOT DEEMED A STOCKHOLDER. No holder,
as such, of any Right Certificate shall be entitled to vote, receive dividends
or be deemed for any purpose the holder of the Preferred Shares or interests
therein or any other securities of the Company which may at any time be issuable
on the exercise of the Rights represented thereby, nor shall anything contained
herein or in any Right Certificate be construed to confer upon the holder of any
Right Certificate, as such, any of the rights of a stockholder of the Company or
any right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in Section 25 hereof), or to receive dividends
or subscription rights, or otherwise, until the Right or Rights evidenced by
such Right Certificate shall have been exercised in accordance with the
provisions hereof.

      Section 18. CONCERNING THE RIGHTS AGENT. The Company agrees to pay to the
Rights Agent reasonable compensation for all services rendered by it hereunder
and, from time to time, on demand of the Rights Agent, its reasonable expenses
and counsel fees and other disbursements incurred in the administration and
execution of this Agreement and the exercise and performance of its duties
hereunder. The Company also agrees to indemnify the Rights Agent for, and to
hold it harmless against, any loss, liability, or expense, incurred without
negligence, bad faith or willful misconduct on the part of the Rights Agent, for
anything done or omitted by the Rights Agent in connection with the acceptance
and administration of this Agreement, including the costs and expenses of
defending against any claim of liability in the premises.

      The Rights Agent shall be protected and shall incur no liability for, or
in respect of any action taken, suffered or omitted by it in connection with,
its administration of this Agreement in reliance upon any Right Certificate or
certificate for the Common Shares or for other securities of the Company,
instrument of assignment or transfer, power of attorney, endorsement, affidavit,
letter, notice, direction, consent, certificate, statement, or other paper or
document believed by it to be genuine and to be signed, executed and, where
necessary, verified or acknowledged, by the proper Person or Persons, or
otherwise upon the advice of counsel as set forth in Section 20 hereof.

      Section 19. MERGER OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT. Any
corporation into which the Rights Agent or any successor Rights Agent may be
merged or with which it may be consolidated, or any corporation resulting from
any merger or consolidation to which the Rights Agent or any successor Rights
Agent shall be a party, or any corporation succeeding to the stock transfer or
corporate trust business of the Rights Agent or any successor Rights Agent,
shall be the successor to the Rights Agent under this Agreement without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, provided that such corporation would be eligible for appointment
as a successor Rights Agent under the provisions of Section 21 hereof. In case,
at the time such successor Rights Agent shall succeed to the agency created by
this Agreement, any of the Right Certificates shall have been countersigned but
not delivered, any such successor Rights Agent may adopt the countersignature of
the predecessor Rights Agent and deliver such Right Certificates so
countersigned; and in case at that time any of

                                    -20-

the Right Certificates shall not have been countersigned, any successor Rights
Agent may countersign such Right Certificates either in the name of the
predecessor Rights Agent or in the name of the successor Rights Agent; and in
all such cases such Right Certificates shall have the full force provided in the
Right Certificates and in this Agreement.

      In case at any time the name of the Rights Agent shall be changed and at
such time any of the Right Certificates shall have been countersigned but not
delivered, the Rights Agent may adopt the countersignature under its prior name
and deliver Right Certificates so countersigned, and in case at that time any of
the Right Certificates shall not have been countersigned, the Rights Agent may
countersign such Right Certificates either in its prior name or in its changed
name; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

      Section 20. DUTIES OF RIGHTS AGENT. The Rights Agent undertakes the duties
and obligations imposed by this Agreement upon the following terms and
conditions, by all of which the Company and the holders of Right Certificates,
by their acceptance thereof, shall be bound:

            (a) The Rights Agent may consult with legal counsel (who may be
legal counsel for the Company), and the opinion of such counsel shall be full
and complete authorization and protection to the Rights Agent as to any action
taken or omitted by it in good faith and in accordance with such opinion.

            (b) Whenever in the performance of its duties under this Agreement
the Rights Agent shall deem it necessary or desirable that any fact or matter be
proved or established by the Company prior to taking or suffering any action
hereunder, such fact or matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by any one of the Chairman of the Board of
Directors, President, any Vice President, the Secretary or the Treasurer of the
Company and delivered to the Rights Agent; and such certificate shall be full
authorization to the Rights Agent for any action taken or suffered in good faith
by it under the provisions of this Agreement in reliance upon such certificate.

            (c) The Rights Agent shall be liable hereunder to the Company and
any other Person only for the Rights Agent's own negligence, bad faith or
willful misconduct.

            (d) The Rights Agent shall not be liable for or by reason of any of
the statements of fact or recitals contained in this Agreement or in the Right
Certificates (except its countersignature thereof) or be required to verify the
same, but all such statements and recitals are and shall be deemed to have been
made by the Company only.

            (e) The Rights Agent shall not be under any responsibility in
respect of the validity of this Agreement or the execution and delivery hereof
(except the due execution hereof by the Rights Agent) or in respect of the
validity or execution of any Right Certificate (except its countersignature
thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Right Certificate;
nor shall it be responsible for any change in the exercisability of the Rights
(including any Rights that become void pursuant to

                                    -21-

Section 11(a)(ii) hereof) or any adjustment in the terms of the Rights
(including the manner, method or amount thereof) provided for in Sections 3, 11,
13, 23 or 24 hereof, or the ascertaining of the existence of facts that would
require any such change or adjustment (except with respect to the exercise of
Rights evidenced by Right Certificates after actual notice that such change or
adjustment is required); nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any
Preferred Shares to be issued pursuant to this Agreement or any Right
Certificate or as to whether any Preferred Shares will, when issued, be validly
authorized and issued, fully paid and nonassessable.

            (f) The Company agrees that it will perform, execute, acknowledge
and deliver or cause to be performed, executed, acknowledged and delivered all
such further and other acts, instruments and assurances as may reasonably be
required by the Rights Agent for the carrying out or performing by the Rights
Agent of the provisions of this Agreement.

            (g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from any
one of the Chairman of the Board of Directors, President, any Vice President,
the Secretary or the Treasurer of the Company, and to apply to such officers for
advice or instructions in connection with its duties, and it shall not be liable
for any action taken or suffered by it in good faith in accordance with
instructions of any such officer or for any delay in acting while waiting for
those instructions.

            (h) The Rights Agent and any stockholder, director, officer or
employee of the Rights Agent may buy, sell or deal in any of the Rights or other
securities of the Company or become pecuniarily interested in any transaction in
which the Company may be interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though it were not Rights Agent
under this Agreement. Nothing herein shall preclude the Rights Agent from acting
in any other capacity for the Company (including, without limitation, acting as
transfer agent for the Common Shares) or for any other legal entity.

            (i) The Rights Agent may execute and exercise any of the rights or
powers hereby vested in it or perform any duty hereunder either itself or by or
through its attorneys or agents, and the Rights Agent shall not be answerable or
accountable for any act, default, neglect or misconduct of any such attorneys or
agents or for any loss to the Company resulting from any such act, default,
neglect or misconduct, provided reasonable care was exercised in the selection
and continued employment thereof.

      Section 21. CHANGE OF RIGHTS AGENT. The Rights Agent or any successor
Rights Agent may resign and be discharged from its duties under this Agreement
upon 30 days' notice in writing mailed to the Company and to each transfer agent
of the Common Shares or Preferred Shares by registered or certified mail, and to
the holders of the Right Certificates by first-class mail. The Company may
remove the Rights Agent or any successor Rights Agent upon 30 days' notice in
writing, mailed to the Rights Agent or successor Rights Agent, as the case may
be, and to each transfer agent of the Common Shares or Preferred Shares by
registered or certified mail, and to the holders of the Right Certificates by
first-class mail. If the Rights Agent shall resign or be removed or shall
otherwise become incapable of acting, the Company shall appoint a successor to
the Rights

                                    -22-

Agent. If the Company shall fail to make such appointment within a period of 30
days after giving notice of such removal or after it has been notified in
writing of such resignation or incapacity by the resigning or incapacitated
Rights Agent or by the holder of a Right Certificate (who shall, with such
notice, submit his Right Certificate for inspection by the Company), then the
registered holder of any Right Certificate may apply to any court of competent
jurisdiction for the appointment of a new Rights Agent. Any successor Rights
Agent, whether appointed by the Company or by such a court, shall be a
corporation organized and doing business under the laws of the United States or
of the States of New York or Texas (or of any other state of the United States
so long as such corporation is authorized to do business as a banking
institution in the State of New York or the State of Texas), in good standing,
which is authorized under such laws to exercise corporate trust or stock
transfer powers and is subject to supervision or examination by federal or state
authority and which has at the time of its appointment as Rights Agent a
combined capital and surplus of at least $50 million. After appointment, the
successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and transfer
to the successor Rights Agent any property at the time held by the predecessor
Rights Agent hereunder, and execute and deliver any further assurance,
conveyance, act or deed necessary for the purpose. Not later than the effective
date of any such appointment the Company shall file notice thereof in writing
with the predecessor Rights Agent and each transfer agent of the Common Shares
or Preferred Shares, and mail a notice thereof in writing to the registered
holders of the Right Certificates. Failure to give any notice provided for in
this Section 21, however, or any defect therein, shall not affect the legality
or validity of the resignation or removal of the Rights Agent or the appointment
of the successor Rights Agent, as the case may be.

      Section 22. ISSUANCE OF NEW RIGHT CERTIFICATES. Notwithstanding any of the
provisions of this Agreement or of the Rights to the contrary, the Company may,
at its option, issue new Right Certificates evidencing Rights in such form as
may be approved by its Board of Directors to reflect any adjustment or change in
the Purchase Price and the number or kind or class of shares or other securities
or property purchasable under the Right Certificates made in accordance with the
provisions of this Agreement.

      Section 23. REDEMPTION.

            (a) The Rights may be redeemed by action of the Board of Directors
of the Company pursuant to Section 23(b) and shall not be redeemed in any other
manner. Notwithstanding anything contained or implied in this Agreement to the
contrary, the Rights shall not be exercisable after the occurrence of an event
described in Section 11(a)(ii) hereof until such time as the Company's rights of
redemption hereunder have expired.

            (b) The Board of Directors of the Company may, at its option, at any
time prior to the close of business on the tenth Business Day after the Shares
Acquisition Date, redeem all, but not less than all, the then outstanding Rights
at a redemption price of $.001 per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date
hereof (such redemption price being hereinafter referred to as the "Redemption
Price"). The Company may, at its option, pay the Redemption Price in cash,
Common Shares (based on the

                                    -23-

current per share market price of the Common Shares at the time of redemption
determined pursuant to Section 11(d) hereof) or any other form of consideration
deemed appropriate by the Board of Directors of the Company; PROVIDED, HOWEVER,
that if the Company elects to pay the Redemption Price in Common Shares, the
Company shall not be required to issue fractional Common Shares and the number
of Common Shares issuable to each holder of Rights shall be rounded down to the
next whole share.

            (c) Immediately upon the action of the Board of Directors of the
Company ordering the redemption of the Rights pursuant to Section 23(b), and
without any further action and without any notice, the right to exercise the
Rights will terminate and the only right thereafter of the holders of Rights
shall be to receive the Redemption Price. The Company shall promptly give public
notice of any such redemption; PROVIDED, HOWEVER, that the failure to give, or
any defect in, any such notice shall not affect the validity of such redemption.
Within 10 days after such action of the Board of Directors ordering the
redemption of the Rights pursuant to Section 23(b), the Company shall mail a
notice of redemption to all the holders of the then outstanding Rights at their
addresses as they appear upon the registry books of the Rights Agent or, prior
to the Distribution Date, on the registry books of the transfer agent for the
Common Shares. Any notice which is mailed in the manner herein provided shall be
deemed given, whether or not the holder receives the notice. Each such notice of
redemption will state the method by which the payment of the Redemption Price
will be made. Neither the Company nor any of its Affiliates or Associates may
redeem, acquire or purchase for value any Rights at any time in any manner other
than that specifically set forth in this Section 23 or in Section 24 hereof, and
other than in connection with the purchase of Common Shares prior to the
Distribution Date.

      Section 24. EXCHANGE.

            (a) The Board of Directors of the Company may, at its option, at any
time after any Person becomes an Acquiring Person, exchange all or any part of
the then outstanding and exercisable Rights (which shall not include Rights that
have become void pursuant to the provisions of Section 11(a)(ii) hereof) for
Common Shares at an exchange ratio of one Common Share per Right, appropriately
adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such exchange ratio being hereinafter referred
to as the "Exchange Ratio").

            (b) Immediately upon the action of the Board of Directors of the
Company ordering the exchange of any Rights pursuant to Section 24(a), and
without any further action and without any notice, the right to exercise such
Rights shall terminate and the only right thereafter of a holder of such Rights
shall be to receive that number of Common Shares equal to the number of such
Rights held by such holder multiplied by the Exchange Ratio. The Company shall
promptly give public notice of any such exchange; PROVIDED, HOWEVER, that the
failure to give, or any defect in, such notice shall not affect the validity of
such exchange. The Company shall promptly mail a notice of any such exchange to
all of the holders of such Rights at their addresses as they appear upon the
registry books of the Rights Agent. Any notice which is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the
notice. Each such notice of exchange will state the method by which the exchange
of the Common Shares for Rights will be

                                    -24-

effected and, in the event of any partial exchange, the number of Rights which
will be exchanged. Any partial exchange shall be effected pro rata based on the
number of Rights (other than Rights which have become void pursuant to the
provisions of Section 11(a)(ii) hereof) held by each holder of Rights.

            (c) In any exchange pursuant to this Section 24, the Company, at its
option, may substitute interests in Preferred Shares (or equivalent preferred
shares, as such term is defined in Section 11(b) hereof) for Common Shares
exchangeable for Rights, at the initial rate of one one-thousandth interest in a
Preferred Share (or equivalent preferred share) for each Common Share, as
appropriately adjusted to reflect adjustments in the voting rights of the
Preferred Shares pursuant to the Statement of Resolution Establishing Series of
Shares attached hereto as Exhibit A, so that the fraction of a Preferred Share
delivered in lieu of each Common Share shall have the same voting rights as one
Common Share.

            (d) In the event that there shall not be sufficient Common Shares or
Preferred Shares issued but not outstanding or authorized but unissued to permit
any exchange of Rights as contemplated in accordance with this Section 24, the
Company shall take all such action as may be necessary to authorize additional
Common Shares or Preferred Shares for issuance upon exchange of the Rights. In
the event that the Company, after good faith effort, shall be unable to take
shall such action as may be necessary to authorize such additional Common Shares
or Preferred Shares, the Company shall substitute, for each Common Share or
Preferred Share that would otherwise be issuable upon exchange of a Right, a
number of Common Shares, Preferred Shares or shares of preferred stock, notes,
debentures or other securities, or any combination thereof, having an aggregate
value equal to the Rights to be exchanged, which value shall be determined by a
nationally recognized investment banking firm selected by the Board of
Directors.

            (e) The Company shall not be required to issue fractions of Common
Shares or to distribute certificates which evidence fractional Common Shares. In
lieu of such fractional Common Shares, the Company shall pay to the registered
holders of the Right Certificates with regard to which such fractional Common
Shares would otherwise be issuable an amount in cash equal to the same fraction
of the current market value of a whole Common Share. For the purposes of this
Section 24(e), the current market value of a whole Common Share shall be the
closing price of a Common Share (as determined pursuant to the second sentence
of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of
exchange pursuant to this Section 24.

      Section 25. NOTICE OF CERTAIN EVENTS.

            (a) In case the Company shall propose (i) to pay any dividend
payable in stock of any class to the holders of Preferred Shares or to make any
other distribution to the holders of Preferred Shares (other than a regular
quarterly cash dividend), (ii) to offer to the holders of Preferred Shares
rights or warrants to subscribe for or to purchase any additional Preferred
Shares or shares of stock of any class or any other securities, rights or
options, (iii) to effect any reclassification of Preferred Shares (other than a
reclassification involving only the subdivision of outstanding Preferred
Shares), (iv) to effect any consolidation or merger into or with, or to effect
any sale or other transfer (or to permit one or more of its Subsidiaries to
effect any sale or other transfer),

                                    -25-

in one or more transactions, of 50% or more of the assets or earning power of
the Company and its Subsidiaries (taken as a whole) to, any other Person, (v) to
effect the liquidation, dissolution or winding up of the Company, or (vi) to
declare or pay any dividend on the Common Shares payable in Common Shares, to
reclassify the Common Shares, or to otherwise effect a split-up, division or
combination of the Common Shares, then, in each such case, the Company shall
give to each holder of a Right Certificate, in accordance with Section 26
hereof, a notice of such proposed action, which shall specify the record date
for purposes of such stock dividend, or distribution of rights or warrants, or
the date on which such reclassification, consolidation, merger, sale, transfer,
liquidation, dissolution, or winding up is to take place and the date of
participation therein by the holders of the Common Shares and/or Preferred
Shares, if any such date is to be fixed, and such notice shall be so given in
the case of any action described by clause (i) or (ii) above at least 10 days
prior to the record date for determining holders of the Preferred Shares for
purposes of such action, and in the case of any such other action, at least 10
days prior to the date of the taking of such proposed action or the date of
participation therein by the holders of the Common Shares and/or Preferred
Shares, whichever shall be the earlier.

            (b) In case the event set forth in Section 11(a)(ii) hereof shall
occur, then the Company shall as soon as practicable thereafter give to each
holder of a Right Certificate, in accordance with Section 26 hereof, a notice of
the occurrence of such event, which notice shall describe the event and the
consequences of the event to holders of Rights under Section 11(a)(ii) hereof.

      Section 26. NOTICES. Notices or demands authorized by this Agreement to be
given or made by the Rights Agent or by the holder of any Right Certificate to
or on the Company shall be sufficiently given or made if sent by first-class
mail, postage prepaid, addressed (until another address is filed in writing with
the Rights Agent) as follows:

                  The Meridian Resource Corporation
                  15995 N. Barkers Landing, Suite 300
                  Houston, Texas  77079
                  Attention:  Corporate Secretary

Subject to the provisions of Section 21 hereof, any notice or demand authorized
by this Agreement to be given or made by the Company or by the holder of any
Right Certificate to or on the Rights Agent shall be sufficiently given or made
if sent by first-class mail, postage prepaid, addressed (until another address
is filed in writing with the Company) as follows:

                  American Stock Transfer & Trust Co.
                  40 Wall Street, 46th Floor
                  New York, New York 10005
                  Attention:  Stock Transfer Department

Notices or demands authorized by this Agreement to be given or made by the
Company or the Rights Agent to the holder of any Right Certificate shall be
sufficiently given or made if sent by first-class

                                    -26-

mail, postage prepaid, addressed to such holder at the address of such holder as
shown on the registry books of the Company.

      Section 27. SUPPLEMENTS AND AMENDMENTS. The Company may (and the Rights
Agent shall at the direction of the Company) from time to time supplement or
amend this Agreement without the approval of any holders of Right Certificates
in order (i) at any time, to cure any ambiguity, (ii) at any time, to correct or
supplement any provision contained herein which may be defective or inconsistent
with any other provisions herein, (iii) prior to the Distribution Date, to
change or supplement any of the provisions hereof in any manner which the
Company may deem necessary or desirable (including, but without any limitation,
changing the percentage of ownership of Common Shares at which a Person becomes
an Acquiring Person, the Distribution Date, the time for redemption of Rights or
the time for, or limits on, amendment of this Agreement) or (iv) after the
Distribution Date, to change or supplement the provisions hereof in any manner
which the Company may deem necessary or desirable and which shall not adversely
affect the interests of the holders of the Rights Certificates (other than an
Acquiring Person or an Affiliate or Associate of an Acquiring Person), any such
supplement or amendment to be evidenced by a writing signed by the Company and
the Rights Agent.

      Section 28. SUCCESSORS. All the covenants and provisions of this Agreement
by or for the benefit of the Company or the Rights Agent shall bind and inure to
the benefit of their respective successors and assigns hereunder.

      Section 29. BENEFITS OF THIS AGREEMENT. Nothing in this Agreement shall be
construed to give to any Person other than the Company, the Rights Agent and the
registered holders of the Right Certificates (and, prior to the Distribution
Date, the Common Shares) any legal or equitable right, remedy or claim under
this Agreement; and this Agreement shall be for the sole and exclusive benefit
of the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, the Common Shares).

      Section 30. SEVERABILITY. If any term, provision, covenant or restriction
of this Agreement is held by a court of competent jurisdiction or other
authority to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of this Agreement shall remain in full
force and effect and shall in no way be affected, impaired or invalidated;
provided, however, that notwithstanding the foregoing, if any such term,
provision, covenant or restriction is held by such court or authority to be
invalid, void or unenforceable and the Board of Directors of the Company
determines in its good faith judgment that severing the invalid language from
this Agreement would materially and adversely affect the purpose and effect of
this Agreement, the right of redemption set forth in Section 23 hereof shall be
reinstated and shall not expire until the Close of Business on the 10th day
following the date of such determination by the Board of Directors.

      Section 31. DETERMINATIONS AND ACTIONS BY THE BOARD OF DIRECTORS. For all
purposes of this Agreement, any calculation of the number of Common Shares or
Preferred Shares outstanding at a particular time, including for purposes of
determining the particular percentage of such outstanding Common Shares or
Preferred Shares of which any Person is the Beneficial Owner, shall be made in
accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules
and

                                    -27-

Regulations under the Exchange Act as in effect on the date hereof. The Board of
Directors of the Company shall have the exclusive power and authority to
administer this Agreement and to exercise all rights and powers specifically
granted to the Board of Directors of the Company or to the Company, or as may be
necessary or advisable in the administration of this Agreement, including,
without limitation, the right and power to (i) interpret the provisions of this
Agreement, and (ii) make all determinations deemed necessary or advisable for
the administration of this Agreement (including a determination to redeem or not
redeem the Rights or to amend the Agreement). All such actions, calculations,
interpretations and determinations (including, for purposes of clause (y) below,
all omissions with respect to the foregoing) which are done or made by the Board
of Directors of the Company in good faith, shall (x) be final, conclusive and
binding on the Company, the Rights Agent, the holders of the Rights and all
other Persons, and (y) not subject the Board of Directors of the Company to any
liability to the holders of the Rights.

      Section 32. GOVERNING LAW. THIS AGREEMENT AND EACH RIGHT CERTIFICATE
ISSUED HEREUNDER SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE
STATE OF TEXAS AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF SUCH STATE APPLICABLE TO CONTRACTS TO BE MADE AND
PERFORMED ENTIRELY WITHIN SUCH STATE.

      Section 33. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of such counterparts shall for all purposes be deemed to be
an original, and all such counterparts shall together constitute but one and the
same instrument.

      Section 34. DESCRIPTIVE HEADINGS. Descriptive headings of the several
Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

                                    -28-

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


                                      THE MERIDIAN RESOURCE CORPORATION



                                      By:    /s/ JOSEPH A. REEVES, JR.
                                      Name:      Joseph A. Reeves, Jr.
                                      Title:     President and CEO 



                                      AMERICAN STOCK TRANSFER &
                                      TRUST CO. 



                                      By:    /s/ HERBERT J. LEMMER
                                      Name:      Herbert J. Lemmer
                                      Title:     Vice President 

                                    -29-

                                                                     EXHIBIT A

             STATEMENT OF RESOLUTION ESTABLISHING SERIES OF SHARES

                       THE MERIDIAN RESOURCE CORPORATION

                     STATEMENT OF RESOLUTION ESTABLISHING
                               SERIES OF SHARES


TO THE SECRETARY OF STATE
   OF THE STATE OF TEXAS:

      Pursuant to the provisions of Article 2.13 of the Texas Business
Corporation Act, the undersigned corporation submits the following statement for
the purpose of establishing and designating a series of shares and fixing and
determining the relative rights and preferences thereof:

      1.    The name of the Corporation is The Meridian Resource Corporation.

      2. The following resolution, establishing and designating a series of
shares and fixing and determining the relative rights and preferences thereof,
was duly adopted by the Board of Directors of the Corporation on May 5, 1999:

      RESOLVED, that pursuant to Third Amended and Restated Articles of
Incorporation of the Corporation authorizing the Board of Directors to establish
and designate series of preferred stock, $1.00 par value, of the Corporation
(the "Preferred Stock") and to fix and determine the relative rights and
preferences of the shares of any such series , there is hereby designated a
series of Preferred Stock to be called "Series B Preferred Stock" to consist of
50,000 shares and to have the following terms:

            Section 1.  DIVIDENDS AND DISTRIBUTIONS.

            (a) Subject to the rights of holders of shares of any series of
Preferred Stock that ranks prior to the Series B Preferred Stock with respect to
dividends, the holders of shares of Series B Preferred Stock, in preference to
the rights of holders of shares of Common Stock, par value $0.01 per share
("Common Stock"), of the Corporation with respect to dividends, and in
preference to the rights of holders of shares of any series of Preferred Stock
that ranks junior to the Series B Preferred Stock with respect to dividends,
shall be entitled to receive, when, as and if declared by the Board out of funds
legally available for that purpose, quarterly dividends, which shall be payable
in cash except as hereinafter provided, on the first day of January, April, July
and October in each year during which a share or fraction of a share of Series B
Preferred Stock is outstanding (each such date being referred to herein as a
"Quarterly Dividend Payment Date"), commencing on the first Quarterly Dividend
Payment Date after the first issuance of a share or fraction of a share of
Series B Preferred Stock, each such dividend to be in an amount per share
(rounded to the nearest cent) equal to:

                                    A-1

            (i) subject to the provision for adjustment set forth in the next
      succeeding sentence,

                  (A) 1,000 times the aggregate per share amount of all cash
            dividends declared on the Common Stock after the immediately
            preceding Quarterly Dividend Payment Date or, with respect to the
            first Quarterly Dividend Payment Date, after the first issuance of
            any share or fraction of a share of Series B Preferred Stock, plus

                  (B) 1,000 times the aggregate per share amount, which shall be
            payable in kind, of all non-cash dividends or other distributions
            (other than (x) a dividend on the Common Stock that is payable in
            shares of Common Stock or (y) a distribution solely on account of a
            reclassification of, or other split-up, division or combination of
            shares of, Common Stock) declared on the Common Stock after the
            immediately preceding Quarterly Dividend Payment Date or, with
            respect to the first Quarterly Dividend Payment Date, after the
            first issuance of any share or fraction of a share of Series B
            Preferred Stock; or

            (ii) if no dividend or other distribution (other than (x) a dividend
      on the Common Stock that is payable in shares of Common Stock or (y) a
      distribution solely on account of a reclassification of, or other
      split-up, division or combination of shares of, Common Stock) shall have
      been declared on the Common Stock after the immediately preceding
      Quarterly Dividend Payment Date or, with respect to the first Quarterly
      Dividend Payment Date, after the first issuance of any share or fraction
      of a share of Series B Preferred Stock, $.01.

In the event that the Corporation shall at any time after May 5, 1999, (1)
declare a dividend on the Common Stock that is payable in shares of Common
Stock, (2) reclassify the Common Stock or (3) otherwise effect a split-up,
division or combination of shares of Common Stock, then in each such case the
amount per share to which holders of shares of Series B Preferred Stock were
entitled immediately prior to such event under Section 2(a)(i) shall be adjusted
by multiplying such amount by a fraction, the numerator of which shall be the
number of shares of Common Stock that are outstanding immediately after such
event and the denominator of which shall be the number of shares of Common Stock
that were outstanding immediately prior to such event.

      (b) Immediately after the Board declares a dividend or other distribution
on the Common Stock (other than (x) a dividend on the Common Stock that is
payable in shares of Common Stock or (y) a distribution solely on account of a
reclassification of, or other split-up, division or combination of shares of,
Common Stock), if any share or fraction of a share of Series B Preferred Stock
is then outstanding, the Board shall declare a dividend on the Series B
Preferred Stock, which shall be payable at the time and in the amount provided
in Section 2(a). If (i) any share or fraction of a share of Series B Preferred
stock is then outstanding, (ii) no dividend or other distribution (other than
(x) a dividend on the Common Stock that is payable in shares of Common Stock or
(y) a distribution solely on account of a reclassification of, or other
split-up, division or combination of shares of, Common Stock) shall have been
declared on the Common Stock during the period between the immediately preceding
Quarterly Dividend Payment Date and the next succeeding Quarterly Dividend
Payment Date or, with respect to the first Quarterly Dividend Payment Date,

                                    A-2

between the date of the first issuance of any share or fraction of a share of
Series B Preferred Stock and such first Quarterly Dividend Payment Date, and
(iii) there are funds legally available for the payment of a dividend on the
Series B Preferred Stock, the Board shall, at any time prior to such next
succeeding Quarterly Dividend Payment Date or such first Quarterly Dividend
Payment Date, as the case may be, declare a dividend of $1.00 per share on the
Series B Preferred Stock, which shall be payable on such next succeeding
Quarterly Dividend Payment Date or such first Quarterly Dividend Payment Date,
as the case may be.

      (c) Dividends on shares of Series B Preferred Stock shall begin to accrue
and be cumulative from the Quarterly Dividend Payment Date that immediately
precedes the date of issuance of such shares unless (i) the date of issuance of
such shares is prior to the record date for the determination of holders of
shares of Series B Preferred Stock entitled to receive a dividend on the first
Quarterly Dividend Payment Date, in which event dividends on such shares shall
begin to accrue and be cumulative from the date of issuance of such shares, (ii)
the date of issuance of such shares is a Quarterly Dividend Payment Date, in
which event dividends on such shares shall begin to accrue and be cumulative
from such Quarterly Dividend Payment Date, or (iii) the date of issuance of such
shares is a date after the record date for the determination of holders of
shares of Series B Preferred Stock entitled to receive a dividend on the
Quarterly Dividend Payment Date that next succeeds the date of issuance of such
shares, in which event dividends on such shares shall begin to accrue and be
cumulative from such next succeeding Quarterly Dividend Payment Date. Accrued
but unpaid dividends on shares of Series B Preferred Stock shall not bear
interest. If a dividend is declared on the Series B Preferred Stock and the
total amount of that dividend is less than the total amount of all dividends
accrued and payable on all shares of Series B Preferred Stock at the time of
payment of that dividend, then the portion of the total amount of that dividend
to be allocated to each of such shares shall be determined by multiplying the
total amount of that dividend by a fraction, the numerator of which shall be the
total amount of all dividends accrued and payable on that share at that time and
the denominator of which shall be the total amount of all dividends accrued and
payable on all such shares at that time. The Board may fix a record date for the
determination of holders of shares of Series B Preferred Stock entitled to
receive a dividend or other distribution on the Series B Preferred Stock, which
record date shall be no more than 30 days prior to the date fixed for the
payment of that dividend or other distribution.

      (d) If at any time (i) any holder of shares of Series B Preferred Stock
would have been entitled under the foregoing provisions of this Section 2 to
have received by that time a dividend on such shares, assuming that such
dividend had been declared, out of funds legally available for that purpose, at
the time and in the amount provided in the foregoing provisions of this Section
2, and (ii) such dividend or any part thereof has not been paid to such holder,
then such dividend or part thereof shall be considered accrued and payable at
that time.

      Section 2.        VOTING.

      (a) Subject to the provision for adjustment set forth in the next
succeeding sentence, each share of Series B Preferred Stock shall, except as
otherwise provided by law, entitle the holder thereof to 1,000 votes on each
matter that is submitted to a vote of stockholders of the Corporation. In the
event that the Corporation shall at any time after May 5, 1999, (i) declare a
dividend on the

                                    A-3

Common Stock that is payable in shares of Common Stock, (ii) reclassify the
Common Stock or (iii) otherwise effect a split-up, division or combination of
shares of Common Stock, then in each such case the number of votes per share to
which holders of shares of Series B Preferred Stock were entitled immediately
prior to such event shall be adjusted by multiplying such number by a fraction,
the numerator of which shall be the number of shares of Common Stock that are
outstanding immediately after such event and the denominator of which shall be
the number of shares of Common Stock that were outstanding immediately prior to
such event.

      (b) Except as otherwise provided by law or in the Third Amended and
Restated Articles of Incorporation of the Corporation or the resolution or
resolutions of the Board providing for the issuance of shares of Preferred Stock
(including but not limited to these resolutions):

            (i) the holders of shares of Series B Preferred Stock, the holders
      of shares of Common Stock and the holders of shares of any other class or
      series of capital stock of the Corporation having general voting rights
      shall vote together as a single class on each matter that is submitted to
      a vote of stockholders of the Corporation, and

            (ii) the holders of shares of Series B Preferred Stock shall not
      have any special voting rights.

      Section 3. CERTAIN RESTRICTIONS. Unless and until all dividends at the
time accrued and payable on all shares of Series B Preferred Stock have been
paid in full, the Corporation shall not:

            (a) declare or pay any dividend, or make any other distribution, on
      any class or series of capital stock of the Corporation that ranks junior,
      either with respect to dividends or upon liquidation, dissolution or
      winding up, to the Series B Preferred Stock (any such class or series
      being referred to herein as "Junior Stock");

            (b) declare or pay any dividend, or make any other distribution, on
      any class or series of capital stock of the Corporation that ranks in
      parity, either with respect to dividends or upon liquidation, dissolution
      or winding up, with the Series B Preferred Stock (any such class or series
      being referred to herein as "Parity Stock"), except dividends that are
      paid ratably on all shares of Series B Preferred Stock on which dividends
      are at the time accrued and payable and all shares of Parity Stock on
      which dividends are at the time accrued and payable in proportion to the
      total amounts of dividends at the time accrued and payable on all such
      shares;

            (c) redeem, purchase or otherwise acquire for consideration any
      shares of Junior Stock, PROVIDED that the Corporation may at any time
      redeem, purchase or otherwise acquire shares of Junior Stock in exchange
      for shares of other Junior Stock; or

            (d) redeem, purchase or otherwise acquire for consideration any
      shares of Series B Preferred Stock or any shares of Parity Stock, except
      in accordance with an offer to purchase made in writing to all holders of
      such shares upon terms that the Board, after considering the relative
      rights and preferences of the respective series and classes of such

                                    A-4

      shares, considers in good faith will result in fair and equitable
      treatment among the holders of such shares.

            Section 4. REACQUIRED SHARES. Any shares of Series B Preferred Stock
that are purchased or otherwise acquired by the Corporation in any manner
whatsoever shall be retired and canceled promptly after the acquisition thereof.
Upon their cancellation, all of such shares shall become authorized but unissued
shares of Preferred Stock and thereafter may be issued as part of another series
of Preferred Stock, subject to the rights of holders (if any) of shares of
Series B Preferred Stock set forth in these resolutions.

      Section 5. LIQUIDATION, DISSOLUTION OR WINDING UP. Upon any liquidation,
dissolution or winding up of the Corporation:

            (a) no distribution shall be made to the holders of shares of Junior
      Stock unless, prior to such distribution, the Corporation shall have paid
      to each holder of shares of Series B Preferred Stock the sum of (i) $100
      per share of Series B Preferred Stock held by such holder (such amount per
      share being referred to herein as the "Preference Amount") plus (ii) the
      total amount of all dividends at the time accrued and payable on all
      shares of Series B Preferred Stock held by such holder;

            (b) no distribution shall be made to the holders of shares of Parity
      Stock, except distributions that are made ratably on both all shares of
      Series B Preferred Stock and all shares of Parity Stock in proportion to
      the total amounts to which the holders of all such shares are entitled
      upon such liquidation, dissolution or winding up; and

            (c) each holder of shares of Series B Preferred Stock shall be
      entitled to receive the sum of (i) the total amount of all dividends at
      the time accrued and payable on all shares of Series B Preferred Stock
      held by such holder plus (ii) an aggregate amount per share (such amount
      per share being referred to herein as the "Distributable Amount"),
      inclusive of the Preference Amount but subject to the provision for
      adjustment set forth in the next succeeding sentence, of Series B
      Preferred Stock held by such holder that is equal to 1,000 times the
      aggregate per share amount to be distributed to holders of shares of
      Common Stock upon such liquidation, dissolution or winding up.

In the event that the Corporation shall at any time after May 5, 1999, (1)
declare a dividend on the Common Stock that is payable in shares of Common
Stock, (2) reclassify the Common Stock or (3) otherwise effect a split-up,
division or combination of shares of Common Stock, then in each such case the
Distributable Amount to which a holder of shares of Series B Preferred Stock was
entitled immediately prior to such event shall be adjusted by multiplying such
Distributable Amount by a fraction, the numerator of which shall be the number
of shares of Common Stock that are outstanding immediately after such event and
the denominator of which shall be the number of shares of Common Stock that were
outstanding immediately prior to such event.

      Section 6. CONSOLIDATION, MERGER, ETC. If the Corporation shall enter into
any consolidation, merger, share exchange or other transaction in which all
outstanding shares of Common Stock are

                                    A-5

5229747.2





exchanged for or changed into other securities, cash, other property or any
combination thereof, then each outstanding share of Series B Preferred Stock
shall at the same time be similarly exchanged for or changed into an amount per
share, subject to the provision for adjustment set forth in the next succeeding
sentence, equal to 1,000 times the aggregate amount of securities, cash and
other property for which each outstanding share of Common Stock is exchanged or
into which each outstanding share of Common Stock is changed. In the event that
the Corporation shall at any time after May 5, 1999, (1) declare a dividend on
the Common Stock that is payable in shares of Common Stock, (2) reclassify the
Common Stock or (3) otherwise effect a split-up, division or combination of
shares of Common Stock, then in each such case the amount per share for which
Series B Preferred Stock would be exchanged, or into the amount which Series B
Preferred Stock would be changed, immediately prior to such event under the
immediately preceding sentence of this Section 7, shall be adjusted by
multiplying such amount by a fraction, the numerator of which shall be the
number of shares of Common Stock that are outstanding immediately after such
event and the denominator of which shall be the number of shares of Common Stock
that were outstanding immediately prior to such event.

      Section 7. REDEMPTION. The shares of Series B Preferred Stock shall not be
redeemable.

      Section 8. RANKING. The Series B Preferred Stock shall rank junior to each
other series of Preferred Stock, both with respect to dividends and upon
liquidation, dissolution or winding up, unless the statement of resolution
establishing such other series of Preferred Stock shall provide otherwise.

      Section 9. AMENDMENT. If any share or fraction of a share of Series B
Preferred Stock is outstanding, neither the Third Amended and Restated Articles
of Incorporation of the Corporation nor the resolution or resolutions of the
Board providing for the issuance of shares of Preferred Stock (including but not
limited to these resolutions) shall be amended in any manner that would
materially alter or change the powers, preferences or rights of holders of
shares of Series B Preferred Stock so as to affect such holders adversely unless
that amendment shall have received the affirmative vote of the holders of a
majority of the outstanding shares of Series B Preferred Stock voting separately
as a class. Notwithstanding the foregoing provisions of this Section 10, whether
or not a share or a fraction of a share of Series B Preferred Stock is
outstanding, (a) the Board may from time to time provide by resolution or
resolutions for the issuance of shares of Preferred Stock of one or more series
that rank prior to the Series B Preferred Stock, either with respect to
dividends or upon liquidation, dissolution or winding up, or both with respect
to dividends and upon liquidation, dissolution or winding up, and (b) no vote or
consent of any holder of shares of Series B Preferred Stock shall be required
either as a condition to the adoption of such resolution or resolutions or as a
condition to the issuance of such shares of Preferred Stock.

      Section 10. FRACTIONAL SHARES. Series B Preferred Stock may be issued in
fractions of a share. Each holder of a fraction of a share of Series B Preferred
Stock shall be entitled to exercise voting rights, to receive dividends and
other distributions, and to have all other rights of the holders of whole shares
of Series B Preferred Stock in proportion to the fraction of a share of Series B
Preferred Stock held by that holder.

                                    A-6

      RESOLVED FURTHER, that the appropriate officers of the Corporation are
authorized to make such filings and to take any other actions they deem
necessary to effect the foregoing resolution.

Dated: May 5, 1999                  THE MERIDIAN RESOURCE CORPORATION



                                    By: /s/ JOSEPH A. REEVES, JR.
                                    Name:   Joseph A. Reeves, Jr.
                                    Title:  President & CEO


                                    A-7

                                                                     EXHIBIT B

                           FORM OF RIGHT CERTIFICATE

Certificate No. R                                                       Rights

      NOT EXERCISABLE AFTER MAY 5, 2009, OR EARLIER IF REDEMPTION OR EXCHANGE
      OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.001 PER RIGHT AND TO
      EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.

                               Right Certificate

                       The Meridian Resource Corporation

      This certifies that _________________________________, or registered
assigns, is the registered owner of the number of Rights set forth above, each
of which entitles the owner thereof, subject to the terms, provisions and
conditions of the Rights Agreement, dated as of May 5, 1999 (the "Rights
Agreement"), between The Meridian Resource Corporation, a Texas corporation (the
"Company"), and American Stock Transfer & Trust Company (the "Rights Agent"), to
purchase from the Company at any time after the Distribution Date (as such term
is defined in the Rights Agreement) and prior to the close of business (as
defined in the Rights Agreement) on May 5, 2009, at the principal offices of the
Rights Agent, or at the offices of its successor as Rights Agent, one
one-thousandth interest in one share of Series B Preferred Stock, par value
$1.00 per share (the "Preferred Shares"), of the Company, at a purchase price of
$_______ per one one-thousandth interest in a Preferred Share (the "Purchase
Price"), upon presentation and surrender of this Right Certificate with the Form
of Election to Purchase duly executed. The number of Rights evidenced by this
Right Certificate (and the number of one one-thousandth interests in a Preferred
Share which may be purchased upon exercise hereof) set forth above, and the
Purchase Price set forth above, are the number and Purchase Price as of May 5,
1999, based on the Preferred Shares as constituted at such date. As provided in
the Rights Agreement, the Purchase Price and the number of one one-thousandth
interests in a Preferred Share which may be purchased upon the exercise of the
Rights evidenced by this Right Certificate are subject to modification and
adjustment upon the happening of certain events.

      This Right Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates. Copies of
the Rights Agreement are on file at the principal executive offices of the
Company and the above-mentioned offices of the Rights Agent.

      This Right Certificate, with or without other Right Certificates, upon
surrender at the principal office of the Rights Agent, may be exchanged for
another Right Certificate or Right

                                    B-1

Certificates of like tenor and date evidencing Rights entitling the holder to
purchase a like aggregate number of interests in Preferred Shares as the Rights
evidenced by the Right Certificate or Right Certificates surrendered shall have
entitled such holder to purchase. If this Right Certificate shall be exercised
in part, the holder shall be entitled to receive upon surrender hereof another
Right Certificate or Right Certificates for the number of whole Rights not
exercised.

      Subject to the provisions of the Rights Agreement, the Rights evidenced by
this Certificate (i) may be redeemed by the Company at a redemption price of
$.001 per Right payable in cash, Preferred Shares or other consideration or (ii)
may be exchanged in whole or in part for Preferred Shares or shares of the
Company's Common Stock, par value $.01 per share.

      No fractional interests in Preferred Shares will be issued upon the
exercise of any Right or Rights evidenced hereby (other than fractional
interests which are integral multiples of one one-thousandth of a Preferred
Share, which may, at the election of the Company, be evidenced by depositary
receipts), but in lieu thereof a cash payment will be made, as provided in the
Rights Agreement.

      No holder of this Right Certificate shall be entitled to vote or receive
dividends or be deemed for any purpose the holder of the Preferred Shares or of
any other securities of the Company which may at any time be issuable on the
exercise hereof, nor shall anything contained in the Rights Agreement or herein
be construed to confer upon the holder hereof, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action, or to receive notice of meetings or
other actions affecting stockholders (except as provided in the Rights
Agreement), or to receive dividends or subscription rights, or otherwise, until
the Right or Rights evidenced by this Right Certificate shall have been
exercised as provided in the Rights Agreement.

      This Right Certificate shall not be valid or obligatory for any purpose
until it shall have been countersigned by the Rights Agent.

      WITNESS the facsimile signature of the proper officers of the Company and
its corporate seal.

      Dated as of _________________, ____.

                                      THE MERIDIAN RESOURCE CORPORATION


                                      By__________________________________

Countersigned:                        ____________________________________


                                      By__________________________________
                                               Authorized Signature

                                    B-2

                   FORM OF REVERSE SIDE OF RIGHT CERTIFICATE



                              FORM OF ASSIGNMENT

               (To be executed by the registered holder if such holder desires
              to transfer the Right Certificate.)


      FOR VALUE RECEIVED ___________________________________________ hereby 
                        (Please print name and address of transferee)

sells, assigns and transfers unto___ this Right Certificate, together with all
right, title and interest therein, and does hereby irrevocably constitute and
appoint Attorney, to transfer the within Right Certificate on the books of the
within-named Company, with full power of substitution.

      Dated: _______________ ,_____.


                                             ___________________________________
                                                         Signature


Signature Guarantee:

      Signatures must be guaranteed by an "eligible guarantor institution" (such
as a bank, stockbroker, credit union or savings association) pursuant to Rule
17Ad-15 of the Rules and Regulations of the Securities Exchange Act of 1934.

================================================================================



      The undersigned hereby certifies that the Rights evidenced by this Right
Certificate are not beneficially owned by an Acquiring Person or an Affiliate or
Associate thereof (as defined in the Rights Agreement) and that after due
inquiry and to the best of the knowledge of the undersigned, it did not acquire
the Rights evidenced by this Rights Certificate for any Person who is, was or
subsequently became an Acquiring Person or an Affiliate or Associate of such
Person.


                                             ___________________________________
                                                         Signature

================================================================================


                                    B-3

            FORM OF REVERSE SIDE OF RIGHT CERTIFICATE -- CONTINUED


                         FORM OF ELECTION TO PURCHASE

                      (To be executed if holder desires to
                        exercise the Right Certificate.)


To:  The Meridian Resource Corporation

      The undersigned hereby irrevocably elects to exercise Rights represented
by this Right Certificate to purchase the interests in Preferred Shares issuable
upon the exercise of such Rights and requests that certificates for such
interests in Preferred Shares be issued in the name of:


- --------------------------------------------------------------------------------
                        (Please print name and address)

- --------------------------------------------------------------------------------
          (Please insert social security or other identifying number)

If such number of Rights shall not be all the Rights evidenced by this Right
Certificate, a new Right Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to:


- --------------------------------------------------------------------------------
                        (Please print name and address)

- --------------------------------------------------------------------------------
          (Please insert social security or other identifying number)

Dated: _________________, _______.


                                             ___________________________________
                                                         Signature

Signature Guarantee:

      Signatures must be guaranteed by an "eligible guarantor institution" (such
as a bank, stockbroker, credit union or savings association) pursuant to Rule
17Ad-15 of the Rules and Regulations of the Securities Exchange Act of 1934.


                                    B-4

            FORM OF REVERSE SIDE OF RIGHT CERTIFICATE -- CONTINUED

________________________________________________________________________________
      The undersigned hereby certifies that the Rights evidenced by this Right
Certificate are not beneficially owned by an Acquiring Person or an Affiliate or
Associate thereof (as defined in the Rights Agreement) and that after due
inquiry and to the best of the knowledge of the undersigned, it did not acquire
the Rights evidenced by this Rights Certificate for any Person who is, was or
subsequently became an Acquiring Person or an Affiliate or Associate of such
Person.


                                                   _____________________________
                                                         Signature

- --------------------------------------------------------------------------------

                                    NOTICE

      The signature in the foregoing Forms of Assignment and Election must
conform to the name as written upon the face of this Right Certificate in every
particular, without alteration or enlargement or any change whatsoever.

      In the event the certification set forth above in the Form of Assignment
or the Form of Election to Purchase, as the case may be, is not completed, the
Company and the Rights Agent will deem the beneficial owner of the Rights
evidenced by this Right Certificate to be an Acquiring Person or an Affiliate or
Associate thereof (as defined in the Rights Agreement) and such Assignment or
Election to Purchase will not be honored.

                                    B-5

                                                                     EXHIBIT C

                SUMMARY OF RIGHTS TO PURCHASE PREFERRED SHARES


      On May 5, 1999, the Board of Directors of The Meridian Resource
Corporation (the "Company") declared a dividend of one Preferred Share purchase
right (a "Right") for each outstanding share of common stock, par value $0.01
per share (the "Common Shares"), of the Company and authorized the issuance of
one Right for each Common Share which shall become outstanding between the
Record Date and the earlier of the Distribution Date (as hereinafter defined) or
the final expiration date of the Rights. The dividend is payable on May 17, 1999
(the "Record Date") to the shareholders of record on that date. Each Right
entitles the registered holder to purchase from the Company one share of Series
B Preferred Stock, par value $1.00 per share (the "Preferred Shares"), of the
Company at a price of $_____ per one one-thousandth interest in a Preferred
Share (the "Purchase Price"), subject to adjustment. The description and terms
of the Rights are set forth in a Rights Agreement (the "Rights Agreement")
between the Company and American Stock Transfer & Trust Company, as Rights Agent
(the "Rights Agent").

      Until the earlier to occur of (i) ten business days following a public
announcement that a person or group of affiliated or associated persons (an
"Acquiring Person") have acquired beneficial ownership of 15% or more of the
outstanding Common Shares and (ii) ten business days following the commencement
of, or announcement of an intention to make, a tender offer or exchange offer
the consummation of which would result in the beneficial ownership by a person
or group of 15% or more of such outstanding Common Shares (the earlier of such
dates being called the "Distribution Date"), the Rights will be evidenced, with
respect to any Common Share certificate outstanding as of the Record Date, by
such Common Share certificate together with a copy of this Summary of Rights
attached thereto. The Rights Agreement provides that, until the Distribution
Date, the Rights will be transferred with and only with the Common Shares.

      Until the Distribution Date (or earlier redemption, exchange or expiration
of the Rights), new Common Share certificates issued after the Record Date, upon
transfer or new issuance of Common Shares will contain a notation incorporating
the Rights Agreement by reference.

      Until the Distribution Date (or earlier redemption, exchange or expiration
of the Rights), the surrender for transfer of any certificates for Common Shares
outstanding as of the Record Date, even without such notation or copy of this
Summary of Rights being attached thereto, will also constitute the transfer of
the Rights associated with the Common Shares represented by such certificate. As
soon as practicable following the Distribution Date, separate certificates
evidencing the Rights ("Right Certificates") will be mailed to holders of record
of the Common Shares as of the close of business on the Distribution Date and
such separate Right Certificates alone will evidence the Rights.

      The Rights are not exercisable until the Distribution Date. The Rights
will expire on May 5, 2009 (the "Final Expiration Date"), unless the Final
Expiration Date is extended or unless the Rights are earlier redeemed or
exchanged by the Company, in each case, as described below.

                                    C-1

      The Purchase Price payable, and the number of interests in Preferred
Shares or other securities or property issuable, upon exercise of the Rights are
subject to adjustment from time to time to prevent dilution (i) in the event of
a stock dividend on, or a subdivision, combination or reclassification of, the
Preferred Shares, (ii) upon the grant to holders of the Preferred Shares of
certain rights, options or warrants to subscribe for or purchase Preferred
Shares at a price, or securities convertible into Preferred Shares with a
conversion price, less than the then current market price of the Preferred
Shares or (iii) upon the distribution to holders of the Preferred Shares of
evidences of indebtedness or assets (excluding regular periodic cash dividends
paid out of earnings or retained earnings or dividends payable in Preferred
Shares) or of subscription rights or warrants (other than those referred to
above).

      The number of outstanding Rights and the number of one one-thousandth
interests in a Preferred Share issuable upon exercise of each Right are also
subject to adjustment in the event of a stock split of the Preferred Shares or a
stock dividend on the Preferred Shares payable in Preferred Shares or
subdivisions, consolidations or combinations of the Preferred Shares occurring,
in any such case, prior to the Distribution Date.

      Interests in Preferred Shares purchasable upon exercise of the Rights will
not be redeemable. Each Preferred Share will be entitled to a minimum
preferential quarterly dividend payment of $1 per share but will be entitled to
an aggregate dividend of 1000 times the dividend declared per Common Share. In
the event of a liquidation, the holders of the interests in Preferred Shares
will be entitled to a minimum preferential liquidation payment of $100 per share
but will be entitled to an aggregate payment of 1000 times the payment made per
Common Share. Each Preferred Share will have 1000 votes, voting together with
the Common Shares. Finally, in the event of any merger, consolidation or other
transaction in which Common Shares are exchanged, each Preferred Share will be
entitled to receive 1000 times the amount received per Common Share. These
rights are protected by customary antidilution provisions.

      Because of the nature of the Preferred Shares' dividend, liquidation and
voting rights, the value of the one one-thousandth interest in a Preferred Share
purchasable upon exercise of each Right should approximate the value of one
Common Share.

      In the event the Company is, in effect, acquired in a merger or other
business combination transaction or 50% or more of its consolidated assets or
earning power is sold, proper provision will be made so that each holder of a
Right will thereafter generally have the right to receive, upon the exercise
thereof at the then current exercise price of the Right, that number of shares
of common stock of the acquiring company which at the time of such transaction
will have a market value of two times the exercise price of the Right. In the
event any person becomes an Acquiring Person, proper provision shall be made so
that each holder of a Right, other than Rights beneficially owned by the
Acquiring Person (which will thereafter be null and void for all purposes of the
Rights Agreement and the holder thereof shall thereafter have no rights with
respect to such Rights, whether under the Rights Agreement or otherwise), will
thereafter have the right to receive upon exercise that number of Preferred
Shares having a market value of two times the exercise price of the Right. Under
some circumstances, in lieu of Preferred Shares, other equity and debt
securities, property, cash or combinations thereof, including combinations with
Preferred Shares, may be issued upon payment

                                    C-2

of the exercise price if of equal value to the number of Preferred Shares for
which the Right is exercisable.

      Under certain circumstances, after a Person has become an Acquiring
Person, the Board of Directors of the Company may exchange the Rights (other
than Rights that were or are beneficially owned by an Acquiring Person), in
whole or in part, at an exchange ratio of one Preferred Share per Right (subject
to adjustment).

      With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments require an adjustment of at least 1% in
such Purchase Price. No fractional Preferred Shares (other than fractions which
are integral multiples of one one-thousandth of a Preferred Share, which may, at
the election of the Company be evidenced by depositary receipts) will be issued,
and in lieu thereof, an adjustment in cash will be made based on the market
price of the Preferred Shares on the last trading day prior to the date of
exercise.

      At any time prior to the close of business on the tenth business day after
the first date of public announcement by the Company or an Acquiring Person that
an Acquiring Person has become such (a "Shares Acquisition Date"), the Board of
Directors of the Company may redeem the Rights in whole, but not in part, at a
price of $.001 per right (the "Redemption Price"), which may be paid in cash or
with Preferred Shares or other consideration deemed appropriate by the Board of
Directors of the Company. Immediately upon any redemption of the Rights, the
right to exercise the Rights will terminate and the only right of the holders of
Rights will be to receive the Redemption Price.

      Until a Right is exercised, the holder thereof, as such, will have no
rights as a stockholder of the Company, including, without limitation, the right
to vote or to receive dividends.

      The terms of the Rights may be amended by the Board of Directors of the
Company without the consent of the holders of the Rights at any time to cure any
ambiguity or to correct or supplement any defective or inconsistent provisions
and may, prior to the Distribution Date, be amended to change or supplement any
other provision in any manner which the Company may deem necessary or desirable.
After the Distribution Date, the terms of the Rights may be amended (other than
to cure ambiguities or correct or supplement defective or inconsistent
provisions) only so long as such amendment shall not adversely affect the
interests of the holders of the Rights (which may not be an Acquiring Person in
whose hands Rights are void).

      A copy of the Rights Agreement has been filed with the Securities and
Exchange Commission as an Exhibit to a Registration Statement on Form 8-A dated
May __, 1999. A copy of the Rights Agreement is available free of charge from
the Company. This summary description of the Rights does not purport to be
complete and is qualified in its entirety by reference to the Rights Agreement,
which is hereby incorporated herein by reference.

                                    C-3

EX-4.2

                                                                     EXHIBIT 4.2

             STATEMENT OF RESOLUTION ESTABLISHING SERIES OF SHARES

                       THE MERIDIAN RESOURCE CORPORATION

                     STATEMENT OF RESOLUTION ESTABLISHING
                               SERIES OF SHARES


TO THE SECRETARY OF STATE
   OF THE STATE OF TEXAS:

      Pursuant to the provisions of Article 2.13 of the Texas Business
Corporation Act, the undersigned corporation submits the following statement for
the purpose of establishing and designating a series of shares and fixing and
determining the relative rights and preferences thereof:

      1. The name of the Corporation is The Meridian Resource Corporation.

      2. The following resolution, establishing and designating a series of
shares and fixing and determining the relative rights and preferences thereof,
was duly adopted by the Board of Directors of the Corporation on May 5, 1999:

      RESOLVED, that pursuant to Third Amended and Restated Articles of
Incorporation of the Corporation authorizing the Board of Directors to establish
and designate series of preferred stock, $1.00 par value, of the Corporation
(the "Preferred Stock") and to fix and determine the relative rights and
preferences of the shares of any such series , there is hereby designated a
series of Preferred Stock to be called "Series B Preferred Stock" to consist of
50,000 shares and to have the following terms:

            Section 1.  DIVIDENDS AND DISTRIBUTIONS.

            (a) Subject to the rights of holders of shares of any series of
Preferred Stock that ranks prior to the Series B Preferred Stock with respect to
dividends, the holders of shares of Series B Preferred Stock, in preference to
the rights of holders of shares of Common Stock, par value $0.01 per share
("Common Stock"), of the Corporation with respect to dividends, and in
preference to the rights of holders of shares of any series of Preferred Stock
that ranks junior to the Series B Preferred Stock with respect to dividends,
shall be entitled to receive, when, as and if declared by the Board out of funds
legally available for that purpose, quarterly dividends, which shall be payable
in cash except as hereinafter provided, on the first day of January, April, July
and October in each year during which a share or fraction of a share of Series B
Preferred Stock is outstanding (each such date being referred to herein as a
"Quarterly Dividend Payment Date"), commencing on the first Quarterly Dividend
Payment Date after the first issuance of a share or fraction of a share of
Series B Preferred Stock, each such dividend to be in an amount per share
(rounded to the nearest cent) equal to:

            (i) subject to the provision for adjustment set forth in the next
      succeeding sentence,

                  (A) 1,000 times the aggregate per share amount of all cash
            dividends declared on the Common Stock after the immediately
            preceding Quarterly Dividend Payment Date or, with respect to the
            first Quarterly Dividend Payment Date, after the first issuance of
            any share or fraction of a share of Series B Preferred Stock, plus

                  (B) 1,000 times the aggregate per share amount, which shall be
            payable in kind, of all non-cash dividends or other distributions
            (other than (x) a dividend on the Common Stock that is payable in
            shares of Common Stock or (y) a distribution solely on account of a
            reclassification of, or other split-up, division or combination of
            shares of, Common Stock) declared on the Common Stock after the
            immediately preceding Quarterly Dividend Payment Date or, with
            respect to the first Quarterly Dividend Payment Date, after the
            first issuance of any share or fraction of a share of Series B
            Preferred Stock; or

            (ii) if no dividend or other distribution (other than (x) a dividend
      on the Common Stock that is payable in shares of Common Stock or (y) a
      distribution solely on account of a reclassification of, or other
      split-up, division or combination of shares of, Common Stock) shall have
      been declared on the Common Stock after the immediately preceding
      Quarterly Dividend Payment Date or, with respect to the first Quarterly
      Dividend Payment Date, after the first issuance of any share or fraction
      of a share of Series B Preferred Stock, $.01.

In the event that the Corporation shall at any time after May 5, 1999, (1)
declare a dividend on the Common Stock that is payable in shares of Common
Stock, (2) reclassify the Common Stock or (3) otherwise effect a split-up,
division or combination of shares of Common Stock, then in each such case the
amount per share to which holders of shares of Series B Preferred Stock were
entitled immediately prior to such event under Section 2(a)(i) shall be adjusted
by multiplying such amount by a fraction, the numerator of which shall be the
number of shares of Common Stock that are outstanding immediately after such
event and the denominator of which shall be the number of shares of Common Stock
that were outstanding immediately prior to such event.

      (b) Immediately after the Board declares a dividend or other distribution
on the Common Stock (other than (x) a dividend on the Common Stock that is
payable in shares of Common Stock or (y) a distribution solely on account of a
reclassification of, or other split-up, division or combination of shares of,
Common Stock), if any share or fraction of a share of Series B Preferred Stock
is then outstanding, the Board shall declare a dividend on the Series B
Preferred Stock, which shall be payable at the time and in the amount provided
in Section 2(a). If (i) any share or fraction of a share of Series B Preferred
stock is then outstanding, (ii) no dividend or other distribution (other than
(x) a dividend on the Common Stock that is payable in shares of Common Stock or
(y) a distribution solely on account of a reclassification of, or other
split-up, division or combination of shares of, Common Stock) shall have been
declared on the Common Stock during the period between the immediately preceding
Quarterly Dividend Payment Date and the next succeeding Quarterly Dividend
Payment Date or, with respect to the first Quarterly Dividend Payment Date,
between the

date of the first issuance of any share or fraction of a share of Series B
Preferred Stock and such first Quarterly Dividend Payment Date, and (iii) there
are funds legally available for the payment of a dividend on the Series B
Preferred Stock, the Board shall, at any time prior to such next succeeding
Quarterly Dividend Payment Date or such first Quarterly Dividend Payment Date,
as the case may be, declare a dividend of $1.00 per share on the Series B
Preferred Stock, which shall be payable on such next succeeding Quarterly
Dividend Payment Date or such first Quarterly Dividend Payment Date, as the case
may be.

      (c) Dividends on shares of Series B Preferred Stock shall begin to accrue
and be cumulative from the Quarterly Dividend Payment Date that immediately
precedes the date of issuance of such shares unless (i) the date of issuance of
such shares is prior to the record date for the determination of holders of
shares of Series B Preferred Stock entitled to receive a dividend on the first
Quarterly Dividend Payment Date, in which event dividends on such shares shall
begin to accrue and be cumulative from the date of issuance of such shares, (ii)
the date of issuance of such shares is a Quarterly Dividend Payment Date, in
which event dividends on such shares shall begin to accrue and be cumulative
from such Quarterly Dividend Payment Date, or (iii) the date of issuance of such
shares is a date after the record date for the determination of holders of
shares of Series B Preferred Stock entitled to receive a dividend on the
Quarterly Dividend Payment Date that next succeeds the date of issuance of such
shares, in which event dividends on such shares shall begin to accrue and be
cumulative from such next succeeding Quarterly Dividend Payment Date. Accrued
but unpaid dividends on shares of Series B Preferred Stock shall not bear
interest. If a dividend is declared on the Series B Preferred Stock and the
total amount of that dividend is less than the total amount of all dividends
accrued and payable on all shares of Series B Preferred Stock at the time of
payment of that dividend, then the portion of the total amount of that dividend
to be allocated to each of such shares shall be determined by multiplying the
total amount of that dividend by a fraction, the numerator of which shall be the
total amount of all dividends accrued and payable on that share at that time and
the denominator of which shall be the total amount of all dividends accrued and
payable on all such shares at that time. The Board may fix a record date for the
determination of holders of shares of Series B Preferred Stock entitled to
receive a dividend or other distribution on the Series B Preferred Stock, which
record date shall be no more than 30 days prior to the date fixed for the
payment of that dividend or other distribution.

      (d) If at any time (i) any holder of shares of Series B Preferred Stock
would have been entitled under the foregoing provisions of this Section 2 to
have received by that time a dividend on such shares, assuming that such
dividend had been declared, out of funds legally available for that purpose, at
the time and in the amount provided in the foregoing provisions of this Section
2, and (ii) such dividend or any part thereof has not been paid to such holder,
then such dividend or part thereof shall be considered accrued and payable at
that time.

      Section 2. VOTING.

      (a) Subject to the provision for adjustment set forth in the next
succeeding sentence, each share of Series B Preferred Stock shall, except as
otherwise provided by law, entitle the holder thereof to 1,000 votes on each
matter that is submitted to a vote of stockholders of the Corporation. In the
event that the Corporation shall at any time after May 5, 1999, (i) declare a
dividend on the

Common Stock that is payable in shares of Common Stock, (ii) reclassify the
Common Stock or (iii) otherwise effect a split-up, division or combination of
shares of Common Stock, then in each such case the number of votes per share to
which holders of shares of Series B Preferred Stock were entitled immediately
prior to such event shall be adjusted by multiplying such number by a fraction,
the numerator of which shall be the number of shares of Common Stock that are
outstanding immediately after such event and the denominator of which shall be
the number of shares of Common Stock that were outstanding immediately prior to
such event.

      (b) Except as otherwise provided by law or in the Third Amended and
Restated Articles of Incorporation of the Corporation or the resolution or
resolutions of the Board providing for the issuance of shares of Preferred Stock
(including but not limited to these resolutions):

            (i) the holders of shares of Series B Preferred Stock, the holders
      of shares of Common Stock and the holders of shares of any other class or
      series of capital stock of the Corporation having general voting rights
      shall vote together as a single class on each matter that is submitted to
      a vote of stockholders of the Corporation, and

            (ii) the holders of shares of Series B Preferred Stock shall not
      have any special voting rights.

      Section 3. CERTAIN RESTRICTIONS. Unless and until all dividends at the
time accrued and payable on all shares of Series B Preferred Stock have been
paid in full, the Corporation shall not:

            (a) declare or pay any dividend, or make any other distribution, on
      any class or series of capital stock of the Corporation that ranks junior,
      either with respect to dividends or upon liquidation, dissolution or
      winding up, to the Series B Preferred Stock (any such class or series
      being referred to herein as "Junior Stock");

            (b) declare or pay any dividend, or make any other distribution, on
      any class or series of capital stock of the Corporation that ranks in
      parity, either with respect to dividends or upon liquidation, dissolution
      or winding up, with the Series B Preferred Stock (any such class or series
      being referred to herein as "Parity Stock"), except dividends that are
      paid ratably on all shares of Series B Preferred Stock on which dividends
      are at the time accrued and payable and all shares of Parity Stock on
      which dividends are at the time accrued and payable in proportion to the
      total amounts of dividends at the time accrued and payable on all such
      shares;

            (c) redeem, purchase or otherwise acquire for consideration any
      shares of Junior Stock, PROVIDED that the Corporation may at any time
      redeem, purchase or otherwise acquire shares of Junior Stock in exchange
      for shares of other Junior Stock; or

            (d) redeem, purchase or otherwise acquire for consideration any
      shares of Series B Preferred Stock or any shares of Parity Stock, except
      in accordance with an offer to purchase made in writing to all holders of
      such shares upon terms that the Board, after considering the relative
      rights and preferences of the respective series and classes of such

      shares, considers in good faith will result in fair and equitable
      treatment among the holders of such shares.

      Section 4. REACQUIRED SHARES. Any shares of Series B Preferred Stock that
are purchased or otherwise acquired by the Corporation in any manner whatsoever
shall be retired and canceled promptly after the acquisition thereof. Upon their
cancellation, all of such shares shall become authorized but unissued shares of
Preferred Stock and thereafter may be issued as part of another series of
Preferred Stock, subject to the rights of holders (if any) of shares of Series B
Preferred Stock set forth in these resolutions.

      Section 5. LIQUIDATION, DISSOLUTION OR WINDING UP. Upon any liquidation,
dissolution or winding up of the Corporation:

            (a) no distribution shall be made to the holders of shares of Junior
      Stock unless, prior to such distribution, the Corporation shall have paid
      to each holder of shares of Series B Preferred Stock the sum of (i) $100
      per share of Series B Preferred Stock held by such holder (such amount per
      share being referred to herein as the "Preference Amount") plus (ii) the
      total amount of all dividends at the time accrued and payable on all
      shares of Series B Preferred Stock held by such holder;

            (b) no distribution shall be made to the holders of shares of Parity
      Stock, except distributions that are made ratably on both all shares of
      Series B Preferred Stock and all shares of Parity Stock in proportion to
      the total amounts to which the holders of all such shares are entitled
      upon such liquidation, dissolution or winding up; and

            (c) each holder of shares of Series B Preferred Stock shall be
      entitled to receive the sum of (i) the total amount of all dividends at
      the time accrued and payable on all shares of Series B Preferred Stock
      held by such holder plus (ii) an aggregate amount per share (such amount
      per share being referred to herein as the "Distributable Amount"),
      inclusive of the Preference Amount but subject to the provision for
      adjustment set forth in the next succeeding sentence, of Series B
      Preferred Stock held by such holder that is equal to 1,000 times the
      aggregate per share amount to be distributed to holders of shares of
      Common Stock upon such liquidation, dissolution or winding up.

In the event that the Corporation shall at any time after May 5, 1999, (1)
declare a dividend on the Common Stock that is payable in shares of Common
Stock, (2) reclassify the Common Stock or (3) otherwise effect a split-up,
division or combination of shares of Common Stock, then in each such case the
Distributable Amount to which a holder of shares of Series B Preferred Stock was
entitled immediately prior to such event shall be adjusted by multiplying such
Distributable Amount by a fraction, the numerator of which shall be the number
of shares of Common Stock that are outstanding immediately after such event and
the denominator of which shall be the number of shares of Common Stock that were
outstanding immediately prior to such event.

      Section 6. CONSOLIDATION, MERGER, ETC. If the Corporation shall enter into
any consolidation, merger, share exchange or other transaction in which all
outstanding shares of Common Stock are

exchanged for or changed into other securities, cash, other property or any
combination thereof, then each outstanding share of Series B Preferred Stock
shall at the same time be similarly exchanged for or changed into an amount per
share, subject to the provision for adjustment set forth in the next succeeding
sentence, equal to 1,000 times the aggregate amount of securities, cash and
other property for which each outstanding share of Common Stock is exchanged or
into which each outstanding share of Common Stock is changed. In the event that
the Corporation shall at any time after May 5, 1999, (1) declare a dividend on
the Common Stock that is payable in shares of Common Stock, (2) reclassify the
Common Stock or (3) otherwise effect a split-up, division or combination of
shares of Common Stock, then in each such case the amount per share for which
Series B Preferred Stock would be exchanged, or into the amount which Series B
Preferred Stock would be changed, immediately prior to such event under the
immediately preceding sentence of this Section 7, shall be adjusted by
multiplying such amount by a fraction, the numerator of which shall be the
number of shares of Common Stock that are outstanding immediately after such
event and the denominator of which shall be the number of shares of Common Stock
that were outstanding immediately prior to such event.

      Section 7. REDEMPTION. The shares of Series B Preferred Stock shall not be
redeemable.

      Section 8. RANKING. The Series B Preferred Stock shall rank junior to each
other series of Preferred Stock, both with respect to dividends and upon
liquidation, dissolution or winding up, unless the statement of resolution
establishing such other series of Preferred Stock shall provide otherwise.

      Section 9. AMENDMENT. If any share or fraction of a share of Series B
Preferred Stock is outstanding, neither the Third Amended and Restated Articles
of Incorporation of the Corporation nor the resolution or resolutions of the
Board providing for the issuance of shares of Preferred Stock (including but not
limited to these resolutions) shall be amended in any manner that would
materially alter or change the powers, preferences or rights of holders of
shares of Series B Preferred Stock so as to affect such holders adversely unless
that amendment shall have received the affirmative vote of the holders of a
majority of the outstanding shares of Series B Preferred Stock voting separately
as a class. Notwithstanding the foregoing provisions of this Section 10, whether
or not a share or a fraction of a share of Series B Preferred Stock is
outstanding, (a) the Board may from time to time provide by resolution or
resolutions for the issuance of shares of Preferred Stock of one or more series
that rank prior to the Series B Preferred Stock, either with respect to
dividends or upon liquidation, dissolution or winding up, or both with respect
to dividends and upon liquidation, dissolution or winding up, and (b) no vote or
consent of any holder of shares of Series B Preferred Stock shall be required
either as a condition to the adoption of such resolution or resolutions or as a
condition to the issuance of such shares of Preferred Stock.

      Section 10. FRACTIONAL SHARES. Series B Preferred Stock may be issued in
fractions of a share. Each holder of a fraction of a share of Series B Preferred
Stock shall be entitled to exercise voting rights, to receive dividends and
other distributions, and to have all other rights of the holders of whole shares
of Series B Preferred Stock in proportion to the fraction of a share of Series B
Preferred Stock held by that holder.

      RESOLVED FURTHER, that the appropriate officers of the Corporation are
authorized to make such filings and to take any other actions they deem
necessary to effect the foregoing resolution.

Dated: May 5, 1999                  THE MERIDIAN RESOURCE CORPORATION


       
                                    By: /S/ JOSEPH A. REEVES, JR.
                                    Name: JOSEPH A. REEVES, JR.
                                    Title: CHIEF EXECUTIVE OFFICER

EX-4.3

                                                                     EXHIBIT 4.3

                                                                     EXHIBIT B

                           FORM OF RIGHT CERTIFICATE

Certificate No. R                                                       Rights

      NOT EXERCISABLE AFTER MAY 5, 2009, OR EARLIER IF REDEMPTION OR EXCHANGE
      OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.001 PER RIGHT AND TO
      EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.

                               Right Certificate

                       The Meridian Resource Corporation

      This certifies that _________________________________, or registered
assigns, is the registered owner of the number of Rights set forth above, each
of which entitles the owner thereof, subject to the terms, provisions and
conditions of the Rights Agreement, dated as of May 5, 1999 (the "Rights
Agreement"), between The Meridian Resource Corporation, a Texas corporation (the
"Company"), and American Stock Transfer & Trust Company (the "Rights Agent"), to
purchase from the Company at any time after the Distribution Date (as such term
is defined in the Rights Agreement) and prior to the close of business (as
defined in the Rights Agreement) on May 5, 2009, at the principal offices of the
Rights Agent, or at the offices of its successor as Rights Agent, one
one-thousandth interest in one share of Series B Preferred Stock, par value
$1.00 per share (the "Preferred Shares"), of the Company, at a purchase price of
$_______ per one one-thousandth interest in a Preferred Share (the "Purchase
Price"), upon presentation and surrender of this Right Certificate with the Form
of Election to Purchase duly executed. The number of Rights evidenced by this
Right Certificate (and the number of one one-thousandth interests in a Preferred
Share which may be purchased upon exercise hereof) set forth above, and the
Purchase Price set forth above, are the number and Purchase Price as of May 5,
1999, based on the Preferred Shares as constituted at such date. As provided in
the Rights Agreement, the Purchase Price and the number of one one-thousandth
interests in a Preferred Share which may be purchased upon the exercise of the
Rights evidenced by this Right Certificate are subject to modification and
adjustment upon the happening of certain events.

      This Right Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates. Copies of
the Rights Agreement are on file at the principal executive offices of the
Company and the above-mentioned offices of the Rights Agent.

      This Right Certificate, with or without other Right Certificates, upon
surrender at the principal office of the Rights Agent, may be exchanged for
another Right Certificate or Right Certificates of like tenor and date
evidencing Rights entitling the holder to purchase a like aggregate number of

interests in Preferred Shares as the Rights evidenced by the Right Certificate
or Right Certificates surrendered shall have entitled such holder to purchase.
If this Right Certificate shall be exercised in part, the holder shall be
entitled to receive upon surrender hereof another Right Certificate or Right
Certificates for the number of whole Rights not exercised.

      Subject to the provisions of the Rights Agreement, the Rights evidenced by
this Certificate (i) may be redeemed by the Company at a redemption price of
$.001 per Right payable in cash, Preferred Shares or other consideration or (ii)
may be exchanged in whole or in part for Preferred Shares or shares of the
Company's Common Stock, par value $.01 per share.

      No fractional interests in Preferred Shares will be issued upon the
exercise of any Right or Rights evidenced hereby (other than fractional
interests which are integral multiples of one one-thousandth of a Preferred
Share, which may, at the election of the Company, be evidenced by depositary
receipts), but in lieu thereof a cash payment will be made, as provided in the
Rights Agreement.

      No holder of this Right Certificate shall be entitled to vote or receive
dividends or be deemed for any purpose the holder of the Preferred Shares or of
any other securities of the Company which may at any time be issuable on the
exercise hereof, nor shall anything contained in the Rights Agreement or herein
be construed to confer upon the holder hereof, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action, or to receive notice of meetings or
other actions affecting stockholders (except as provided in the Rights
Agreement), or to receive dividends or subscription rights, or otherwise, until
the Right or Rights evidenced by this Right Certificate shall have been
exercised as provided in the Rights Agreement.

      This Right Certificate shall not be valid or obligatory for any purpose
until it shall have been countersigned by the Rights Agent.

      WITNESS the facsimile signature of the proper officers of the Company and
its corporate seal.

      Dated as of  _________________, _______.

                                      THE MERIDIAN RESOURCE CORPORATION


                                      By____________________________________

Countersigned:                        ______________________________________


                                      By____________________________________
                                                Authorized Signature

                   FORM OF REVERSE SIDE OF RIGHT CERTIFICATE

                              FORM OF ASSIGNMENT

                   (To be executed by the registered holder if
            such holder desires to transfer the Right Certificate.)


      FOR VALUE RECEIVED ___________________________________________ hereby 
                        (Please print name and address of transferee)
sells, assigns and transfers unto____ this Right Certificate, together with all
right, title and interest therein, and does hereby irrevocably constitute and
appoint Attorney, to transfer the within Right Certificate on the books of the
within-named Company, with full power of substitution.

      Dated: _________________, _______ .


                                              _________________________________
                                                         Signature

Signature Guarantee:

      Signatures must be guaranteed by an "eligible guarantor institution" (such
as a bank, stockbroker, credit union or savings association) pursuant to Rule
17Ad-15 of the Rules and Regulations of the Securities Exchange Act of 1934.

      The undersigned hereby certifies that the Rights evidenced by this Right
Certificate are not beneficially owned by an Acquiring Person or an Affiliate or
Associate thereof (as defined in the Rights Agreement) and that after due
inquiry and to the best of the knowledge of the undersigned, it did not acquire
the Rights evidenced by this Rights Certificate for any Person who is, was or
subsequently became an Acquiring Person or an Affiliate or Associate of such
Person.


                                              _________________________________
                                                         Signature

            FORM OF REVERSE SIDE OF RIGHT CERTIFICATE -- CONTINUED


                          FORM OF ELECTION TO PURCHASE

                      (To be executed if holder desires to
                        exercise the Right Certificate.)


To:  The Meridian Resource Corporation

      The undersigned hereby irrevocably elects to exercise Rights represented
by this Right Certificate to purchase the interests in Preferred Shares issuable
upon the exercise of such Rights and requests that certificates for such
interests in Preferred Shares be issued in the name of:


________________________________________________________________________________
                        (Please print name and address)

________________________________________________________________________________
          (Please insert social security or other identifying number)

If such number of Rights shall not be all the Rights evidenced by this Right
Certificate, a new Right Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to:


________________________________________________________________________________
                        (Please print name and address)

________________________________________________________________________________
          (Please insert social security or other identifying number)

Dated: ________________, ________.


                                                 _______________________________
                                                         Signature

Signature Guarantee:

      Signatures must be guaranteed by an "eligible guarantor institution" (such
as a bank, stockbroker, credit union or savings association) pursuant to Rule
17Ad-15 of the Rules and Regulations of the Securities Exchange Act of 1934.

            FORM OF REVERSE SIDE OF RIGHT CERTIFICATE -- CONTINUED

      The undersigned hereby certifies that the Rights evidenced by this Right
Certificate are not beneficially owned by an Acquiring Person or an Affiliate or
Associate thereof (as defined in the Rights Agreement) and that after due
inquiry and to the best of the knowledge of the undersigned, it did not acquire
the Rights evidenced by this Rights Certificate for any Person who is, was or
subsequently became an Acquiring Person or an Affiliate or Associate of such
Person.



                                                 _______________________________
                                                         Signature

                                    NOTICE

      The signature in the foregoing Forms of Assignment and Election must
conform to the name as written upon the face of this Right Certificate in every
particular, without alteration or enlargement or any change whatsoever.

      In the event the certification set forth above in the Form of Assignment
or the Form of Election to Purchase, as the case may be, is not completed, the
Company and the Rights Agent will deem the beneficial owner of the Rights
evidenced by this Right Certificate to be an Acquiring Person or an Affiliate or
Associate thereof (as defined in the Rights Agreement) and such Assignment or
Election to Purchase will not be honored.

EX-4.4

                                                                     EXHIBIT 4.4

                                                                     EXHIBIT C

                SUMMARY OF RIGHTS TO PURCHASE PREFERRED SHARES


      On May 5, 1999, the Board of Directors of The Meridian Resource
Corporation (the "Company") declared a dividend of one Preferred Share purchase
right (a "Right") for each outstanding share of common stock, par value $0.01
per share (the "Common Shares"), of the Company and authorized the issuance of
one Right for each Common Share which shall become outstanding between the
Record Date and the earlier of the Distribution Date (as hereinafter defined) or
the final expiration date of the Rights. The dividend is payable on May 17, 1999
(the "Record Date") to the shareholders of record on that date. Each Right
entitles the registered holder to purchase from the Company one share of Series
B Preferred Stock, par value $1.00 per share (the "Preferred Shares"), of the
Company at a price of $30.00 per one one-thousandth interest in a Preferred
Share (the "Purchase Price"), subject to adjustment. The description and terms
of the Rights are set forth in a Rights Agreement (the "Rights Agreement")
between the Company and American Stock Transfer & Trust Company, as Rights Agent
(the "Rights Agent").

      Until the earlier to occur of (i) ten business days following a public
announcement that a person or group of affiliated or associated persons (an
"Acquiring Person") have acquired beneficial ownership of 15% or more of the
outstanding Common Shares and (ii) ten business days following the commencement
of, or announcement of an intention to make, a tender offer or exchange offer
the consummation of which would result in the beneficial ownership by a person
or group of 15% or more of such outstanding Common Shares (the earlier of such
dates being called the "Distribution Date"), the Rights will be evidenced, with
respect to any Common Share certificate outstanding as of the Record Date, by
such Common Share certificate together with a copy of this Summary of Rights
attached thereto. The Rights Agreement provides that, until the Distribution
Date, the Rights will be transferred with and only with the Common Shares.

      Until the Distribution Date (or earlier redemption, exchange or expiration
of the Rights), new Common Share certificates issued after the Record Date, upon
transfer or new issuance of Common Shares will contain a notation incorporating
the Rights Agreement by reference.

      Until the Distribution Date (or earlier redemption, exchange or expiration
of the Rights), the surrender for transfer of any certificates for Common Shares
outstanding as of the Record Date, even without such notation or copy of this
Summary of Rights being attached thereto, will also constitute the transfer of
the Rights associated with the Common Shares represented by such certificate. As
soon as practicable following the Distribution Date, separate certificates
evidencing the Rights ("Right Certificates") will be mailed to holders of record
of the Common Shares as of the close of business on the Distribution Date and
such separate Right Certificates alone will evidence the Rights.

      The Rights are not exercisable until the Distribution Date. The Rights
will expire on May 5, 2009 (the "Final Expiration Date"), unless the Final
Expiration Date is extended or unless the Rights are earlier redeemed or
exchanged by the Company, in each case, as described below.

      The Purchase Price payable, and the number of interests in Preferred
Shares or other securities or property issuable, upon exercise of the Rights are
subject to adjustment from time to time to prevent dilution (i) in the event of
a stock dividend on, or a subdivision, combination or reclassification of, the
Preferred Shares, (ii) upon the grant to holders of the Preferred Shares of
certain rights, options or warrants to subscribe for or purchase Preferred
Shares at a price, or securities convertible into Preferred Shares with a
conversion price, less than the then current market price of the Preferred
Shares or (iii) upon the distribution to holders of the Preferred Shares of
evidences of indebtedness or assets (excluding regular periodic cash dividends
paid out of earnings or retained earnings or dividends payable in Preferred
Shares) or of subscription rights or warrants (other than those referred to
above).

      The number of outstanding Rights and the number of one one-thousandth
interests in a Preferred Share issuable upon exercise of each Right are also
subject to adjustment in the event of a stock split of the Preferred Shares or a
stock dividend on the Preferred Shares payable in Preferred Shares or
subdivisions, consolidations or combinations of the Preferred Shares occurring,
in any such case, prior to the Distribution Date.

      Interests in Preferred Shares purchasable upon exercise of the Rights will
not be redeemable. Each Preferred Share will be entitled to a minimum
preferential quarterly dividend payment of $1 per share but will be entitled to
an aggregate dividend of 1000 times the dividend declared per Common Share. In
the event of a liquidation, the holders of the interests in Preferred Shares
will be entitled to a minimum preferential liquidation payment of $100 per share
but will be entitled to an aggregate payment of 1000 times the payment made per
Common Share. Each Preferred Share will have 1000 votes, voting together with
the Common Shares. Finally, in the event of any merger, consolidation or other
transaction in which Common Shares are exchanged, each Preferred Share will be
entitled to receive 1000 times the amount received per Common Share. These
rights are protected by customary antidilution provisions.

      Because of the nature of the Preferred Shares' dividend, liquidation and
voting rights, the value of the one one-thousandth interest in a Preferred Share
purchasable upon exercise of each Right should approximate the value of one
Common Share.

      In the event the Company is, in effect, acquired in a merger or other
business combination transaction or 50% or more of its consolidated assets or
earning power is sold, proper provision will be made so that each holder of a
Right will thereafter generally have the right to receive, upon the exercise
thereof at the then current exercise price of the Right, that number of shares
of common stock of the acquiring company which at the time of such transaction
will have a market value of two times the exercise price of the Right. In the
event any person becomes an Acquiring Person, proper provision shall be made so
that each holder of a Right, other than Rights beneficially owned by the
Acquiring Person (which will thereafter be null and void for all purposes of the
Rights Agreement and the holder thereof shall thereafter have no rights with
respect to such Rights, whether under the Rights Agreement or otherwise), will
thereafter have the right to receive upon exercise that number of Preferred
Shares having a market value of two times the exercise price of the Right. Under
some circumstances, in lieu of Preferred Shares, other equity and debt
securities, property, cash or combinations thereof, including combinations with
Preferred Shares, may be issued upon payment

of the exercise price if of equal value to the number of Preferred Shares for
which the Right is exercisable.

      Under certain circumstances, after a Person has become an Acquiring
Person, the Board of Directors of the Company may exchange the Rights (other
than Rights that were or are beneficially owned by an Acquiring Person), in
whole or in part, at an exchange ratio of one Preferred Share per Right (subject
to adjustment).

      With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments require an adjustment of at least 1% in
such Purchase Price. No fractional Preferred Shares (other than fractions which
are integral multiples of one one-thousandth of a Preferred Share, which may, at
the election of the Company be evidenced by depositary receipts) will be issued,
and in lieu thereof, an adjustment in cash will be made based on the market
price of the Preferred Shares on the last trading day prior to the date of
exercise.

      At any time prior to the close of business on the tenth business day after
the first date of public announcement by the Company or an Acquiring Person that
an Acquiring Person has become such (a "Shares Acquisition Date"), the Board of
Directors of the Company may redeem the Rights in whole, but not in part, at a
price of $.001 per right (the "Redemption Price"), which may be paid in cash or
with Preferred Shares or other consideration deemed appropriate by the Board of
Directors of the Company. Immediately upon any redemption of the Rights, the
right to exercise the Rights will terminate and the only right of the holders of
Rights will be to receive the Redemption Price.

      Until a Right is exercised, the holder thereof, as such, will have no
rights as a stockholder of the Company, including, without limitation, the right
to vote or to receive dividends.

      The terms of the Rights may be amended by the Board of Directors of the
Company without the consent of the holders of the Rights at any time to cure any
ambiguity or to correct or supplement any defective or inconsistent provisions
and may, prior to the Distribution Date, be amended to change or supplement any
other provision in any manner which the Company may deem necessary or desirable.
After the Distribution Date, the terms of the Rights may be amended (other than
to cure ambiguities or correct or supplement defective or inconsistent
provisions) only so long as such amendment shall not adversely affect the
interests of the holders of the Rights (which may not be an Acquiring Person in
whose hands Rights are void).

      A copy of the Rights Agreement has been filed with the Securities and
Exchange Commission as an Exhibit to a Registration Statement on Form 8-A dated
May __, 1999. A copy of the Rights Agreement is available free of charge from
the Company. This summary description of the Rights does not purport to be
complete and is qualified in its entirety by reference to the Rights Agreement,
which is hereby incorporated herein by reference.

EX-99.1

                                                                    EXHIBIT 99.1

THE MERIDIAN RESOURCE CORPORATION ANNOUNCES FIRST QUARTER
FINANCIAL RESULTS AND SHAREHOLDER RIGHTS PLAN

HOUSTON--(BUSINESS WIRE)--May 6, 1999--The Meridian Resource Corporation
(NYSE:TMR) today announced record production and revenues for the first quarter
1999 period. Production increased 142% to 12.4 Bcfe from 5.1 Bcfe during the
first quarter of 1998. The increase is mainly attributable to the acquisition
and the successful development of the Shell properties. Despite the low
commodity price environment, revenues increased 96% to $23.3 million from $11.9
million during the first quarter of 1998, again primarily a result of the
acquisition and development of the Shell properties. Operating cash flow
increased 37% to $7.7 million from $5.6 when compared to the same period.

For the quarter, the Company reported a net loss applicable to common
shareholders of $5.0 million, or $0.11 per share, compared to a net loss of
$40.9 million, or $1.22 per share, during the first quarter of 1998. The current
quarter net loss was a result of lower average commodity prices of $11.44 per
barrel of oil and $1.83 per MCF of natural gas, 16% and 20% decreases,
respectively, compared to realized prices during the same quarter of 1998. Oil
and gas operating expenses for the first quarter were $4.2 million up from $1.5
million for the first quarter 1998. This was due to the addition of the Shell
properties as well as the addition of new wells brought on production during the
last twelve months. On an Mcfe basis, oil and gas operating expenses were
$0.34/Mcfe compared to $0.30/Mcfe during the same period last year. The
$0.04/Mcfe increase was primarily attributable to the increases in the number of
producing wells combined with a shift in the production mix because of the
increased oil production. Severance and ad valorem taxes for the first quarter
of 1999 totaled $2.2 million, an increase of $1.8 million from the same period
in 1998, again as a result of an increase in production and reflecting 84% of
production onshore in the 1999 period (and subject to severance taxes) compared
to 35% onshore production during the same period in 1998. Unit costs per Mcfe
for depletion and depreciation and amortization (D, D&A) have declined to
$1.03/Mcfe, compared to $1.22/Mcfe for the same period in 1998 and $1.31/Mcf for
the fourth quarter of 1998, primarily a result of reserve additions on the Shell
properties and Meridian's Lily Boom prospect in Louisiana.

General and administrative expenses during the first quarter of 1999 totaled
$2.8 million, an increase of $0.8 million over the first quarter of 1998,
related to the increased volume of seismic assets, leases and properties. On a
cost per Mcfe basis, the Company recognized a significant reduction in general
and administrative expenses from $0.39/Mcfe to $0.22/Mcfe compared to the same
quarter a year ago.

Capital expenditures during the first quarter of 1999 totaled $21.9 million and
primarily consisted of exploration and development expenditures at the Company's
North Turtle Bayou/Ramos Field, Weeks Island Field, Thornwell Field, Rockefeller
Refuge prospect, South Timbalier Block 290-291 and Eugene Island Block 304.
These costs were financed primarily by a combination of cash flow from
operations and borrowings under the Company's credit facility. For the balance
of 1999, Meridian's capital budget is focused on low risk development and
exploitation projects, concentrating at the Company's Weeks Island, North Turtle
Bayou/Ramos, Thornwell, Kings Bayou and Rockefeller projects. Since year-end,
the Company has increased its proved reserve position from 304 BCFEq to 358
BCFEq at March 31, 1999, after deducting 12.3 BCFEq of production during the
first quarter.

The Company further announced that its board of directors has adopted a
shareholders rights plan designed to provide additional negotiating leverage to
the Company's board of directors in the event of a unsolicited takeover bid and
to protect the Company's shareholders against inadequate offers. Under the terms
of the rights plan, the Company will distribute one right for each outstanding
share of common stock to holders of record at the close of business on May 17,
1999. The rights plan would be triggered if an acquiring party accumulates 15%
or more of the Company's common stock.

The rights are not being distributed in response to any specific effort to
acquire the Company but to protect the interests of its shareholders in the
event that the Company and its shareholders are confronted with coercive or
unfair takeover tactics. The rights plan is similar to those adopted by numerous
other companies, the details of which will be outlined in a letter that will be
mailed to shareholders.

Certain of the foregoing statements may be deemed "forward-looking statements"
within the meaning of the Securities Exchange Act of 1934. Although Meridian
believes that the expectations reflected in such forward-looking statements are
reasonable; there can be no assurance that such expectations will prove to have
been correct. Certain risks and uncertainties inherent in Meridian's business
are set forth in Meridian's filings with the Securities and Exchange Commission.
These risks include (i) the continued production from existing wells at their
current or projected levels, (ii) price changes for oil and gas, (iii) the
ability of the Company to successfully complete those wells that have been
logged and reflect potential production, (iv) the ability of the Company to
successfully complete and produce those reserves classified as "non-producing"
or "undeveloped", (v) the ability of the Company to acquire leases and timely
drill its exploratory prospects, (vi) risks regarding estimates of reserves,
(vii) production risks, (viii) governmental regulations and (ix) general risks
regarding the exploration for, and production of, oil and gas reserves.

The Meridian Resource Corporation is an independent oil and natural gas company
engaged in the exploration for and development of oil and natural gas properties
utilizing 3-D seismic technology, primarily in south Louisiana, southeast Texas
and offshore Gulf of Mexico. Meridian's office is located in Houston, and the
stock is traded on the New York Stock Exchange under the symbol "TMR."

                   THE MERIDIAN RESOURCE CORPORATION
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (UNAUDITED)

                                                          Three months ended
                                                               March 31,
                                                       -------------------------
                                                        1999              1998
                                                       -------           -------
Revenues:
 Oil and natural gas .......................           $23,104           $11,766
 Interest and other ........................               202               131
                                                       -------           -------
                                                        23,306            11,897

Costs and expenses:
 Oil and natural gas operating ...............           4,170            1,518
 Severance and ad valorem taxes ..............           2,239              460
 Depletion and depreciation ..................          12,687            6,259
 General and administrative ..................           2,794            1,977
 Interest ....................................           5,055            2,332
 Impairment of long-lived assets .............            --             40,278
                                                      --------         --------
                                                        26,945           52,824
                                                      --------         --------
Net loss .....................................          (3,639)         (40,927)

Preferred stock dividend .....................          (1,350)            --
                                                      --------         --------
Net loss applicable to
 common stockholders .........................        ($ 4,989)        ($40,927)
                                                      ========         ========
Net loss per share ...........................        ($   .11)        ($  1.22)
                                                      ========         ========
Weighted average common shares
 Outstanding .................................          45,817           33,451


                        THE MERIDIAN RESOURCE CORPORATION
                        FINANCIAL AND OTHER DATA SUMMARY
                                   (UNAUDITED)

                                                                       1999
                                Three months ended      1999        Percentage
                                     March 31,         Increase      Increase
                                 1999        1998      Decrease      Decrease
                               --------    --------    ---------    ----------
                                     (in thousands, except per share data)
Production:
 Oil (MBbls) ................     1,044         210          834           397%
 Natural gas (MMcf) .........     6,109       3,858        2,251            58%
 Natural gas
  equivalent (Mmcfe) ........    12,373       5,118        7,255           142%

Average sales prices:
 Oil ($/Bbl) ................  $  11.44    $  13.65    ($   2.21)          (16%)
 Natural gas ($/Mcf) ........  $   1.83    $   2.29    ($   0.46)          (20%)
 Natural gas
  equivalent ($/Mcfe) .......  $   1.87    $   2.29    ($   0.42)          (18%)

Net loss(a) .................  ($ 4,989)   ($40,927)        --            --
Net loss per share(a) .......  ($   .11)   ($  1.22)        --            --
Cash flow(b) ................  $  7,698    $  5,610         --            --

(a) Applicable to common stockholders.

(b) Cash flow includes net loss plus impairment charges, depletion and 
    depreciation.

     CONTACT: Meridian Resource Corporation, Houston
              Joseph A. Reeves Jr., Michael J. Mayell, or
              P. Richard "Dick"Gessinger, 281/558-8080