Document:

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                              EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement") is executed on this 5th day of
October, 1999 by and between RESOURCE AMERICA, INC., a Delaware corporation
having its principal place of business at 1521 Locust Street, Philadelphia,
Pennsylvania 19102 ("RAI") and JONATHAN Z. COHEN ("Cohen").

                                   BACKGROUND

         A. Since 1998, Cohen has been an officer of RAI and currently he serves
as Senior Vice President of RAI.

         B. Cohen and RAI desire to formally set forth the terms, conditions and
agreements regarding Cohen's employment as Senior Vice President of RAI.

                                      TERMS

         NOW, THEREFORE, in consideration of the mutual promises set forth
herein, and intending to be legally bound hereby, RAI and Cohen agree as
follows:

         1. Employment. During the term of this Agreement, Cohen shall be
employed as Senior Vice President of RAI.

         2. Duties. Cohen shall report to and accept direction from the Chairman
of the Board of Directors of RAI and from the Board. Cohen shall serve RAI
diligently and to the best of his abilities, but Cohen shall be required to
devote only so much of his time and attention to the business of RAI as may be
required to fulfill his duties. It is recognized that Cohen in the past has
participated, and it is agreed that Cohen in the future may participate in
business endeavors separate and apart from RAI.

         3. Term. Cohen's employment hereunder shall continue in full force and
effect for a period of three (3) years, unless sooner terminated in accordance
with the provisions hereof. Such term shall automatically extend so that on any
day that this Agreement is in effect, it shall have a then current term of three
(3) years. Such automatic extensions shall cease upon RAI's written notice to
Cohen of its election to terminate this Agreement at the end of the three (3)
year period then in effect.

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         4. Compensation.

              (a) Base Compensation. During the period of employment, RAI shall
pay to Cohen "Base Compensation" to be established by the Board, initially in an
amount equal to Two Hundred Thousand Dollars ($200,000.00) per annum base
compensation which Cohen, under existing arrangements approved by the Board, is
to receive during calendar 1999 (the "Initial Level"). The Base Compensation
will be payable in accordance with the general payroll practices by which RAI
pays its executive officers, and the historical practice of RAI's compensation
of Cohen. It is understood that RAI, through the compensation committee of the
Board, will review Cohen's performance on an annual basis and increase or
decrease (but in no event below the Initial Level) such Base Compensation, based
upon Cohen's performance.

              (b) Incentive Compensation. During the period of employment Cohen
may receive incentive compensation in the form of cash bonus payments, stock
option grants and other forms of incentive compensation, based upon Cohen's
performance.

              (c) Reimbursement of Expenses. RAI shall reimburse Cohen for all
reasonable expenses incurred by Cohen in the performance of his duties,
including (without limitation) expenses incurred during business-related travel.

         5. Benefits.

              Cohen shall be entitled to receive the following benefits from RAI
independent of any other benefits which Cohen may receive from RAI or otherwise:

              (a) Participation in Benefit Plans. Cohen will participate in all
employee benefit plans in effect during the term of Cohen's employment
hereunder.

              (b) Temporary Disability. During any period that Cohen fails to
perform his duties hereunder as a result of incapacity due to physical or mental
illness Cohen shall continue to receive his full compensation at the rate then
in effect for such period until his employment is terminated pursuant to
paragraph 6(b) hereof.

         6. Termination.

              Cohen's employment hereunder shall terminate as follows:

              (a) Death. Cohen's employment shall terminate automatically upon
the death of Cohen.

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              (b) Disability. RAI may terminate this Agreement if Cohen becomes
disabled by reason of any physical or mental disability whatsoever for more than
two hundred forty (240) days in the aggregate during any calendar year and the
Board determines, that Cohen, by reason of such physical or mental disability,
is rendered unable to perform his duties and services hereunder (a
"Disability");

              (c) Termination by Cohen for Cause. Cohen may terminate his
employment for cause upon thirty (30) days' prior written notice to RAI, with
opportunity to cure any condition reasonably susceptible of cure. For the
purposes of this paragraph 6(c), cause shall be deemed to exist if any of the
following shall occur: (i) without the written consent of Cohen, a substantial
change in the services or duties required of Cohen hereunder or the imposition
of any services or duties substantially inconsistent with, or in diminution of
Cohen's current position, services or duties, or status with RAI; (ii) failure
to continue Cohen's coverage under any RAI benefit plan as required under
paragraph 5(a) except pursuant to a change to a benefit plan that applies to
senior executives of RAI generally or is required by law or regulation; or (iii)
any material breach by RAI of any provision of this Agreement;

              (d) Termination by Cohen Without Cause. Cohen may terminate this
Agreement without cause upon one hundred eighty (180) days prior written notice
to RAI.

              (e) Change of Control. Cohen may, in his discretion, terminate his
employment upon a Change in Control or Potential Change in Control by sending a
Notice of Termination.

              (f) Termination by RAI. In accordance with paragraph 3 hereof, RAI
may terminate this Agreement at the end of the then current three (3) year term.

         7. Effect of Termination.

              (a) Death. Upon the termination of Cohen's employment pursuant to
paragraph 6(a) hereof due to Cohen's death, a death benefit shall be paid to
Cohen's estate equal to the total amount payable to Cohen under this Agreement
until expiration of the term then in effect, assuming that Cohen's total
compensation for each year would be equal to the Average Compensation. The death
benefit shall be paid in thirty-six (36) equal, consecutive monthly
installments, beginning the first month following the month in which Cohen shall
have died.

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              (b) Disability. Upon the termination of Cohen's employment
pursuant to paragraph 6(b) hereof due to Cohen's disability, Cohen shall be
entitled to receive a monthly disability benefit equal to one twelfth (1/12) of
the product of (i) the Average Compensation, multiplied by (ii) seventy-five
percent (75%). The disability benefit described above shall be paid to Cohen,
beginning the first month following the termination pursuant to paragraph 6(b).
Cohen's disability benefit shall cease if he resumes his employment with RAI on
the terms provided in this Agreement. Disability payments made under this
paragraph shall not be reduced by any payments made directly to Cohen by an
insurance company.

              (c) For Cause; Change of Control. Upon the termination of this
Agreement either (i) by Cohen for cause pursuant to paragraph 6(c) hereof, (ii)
by Cohen pursuant to paragraph 6(e) after a Change in Control or Potential
Change of Control or (iii) by RAI pursuant to section 6(f) hereof, then RAI
shall provide to Cohen the benefits described in Section 7(c)(1) and 7(c)(2)
below (the "Severance Benefits").

                   (1) Lump-Sum Severance Payment. In lieu of any further
compensation payments to Cohen for periods subsequent to the Date of
Termination, RAI shall pay to Cohen a lump sum severance payment, in cash,
without discount, equal to the sum of the total amount payable to Cohen under
this Agreement until expiration of the term then in effect, assuming that
Cohen's total compensation for each year would be equal to the Average
Compensation.

                   (2) Continued Benefits. For a thirty-six (36) month period
after the Date of Termination (the "Benefits Period"), RAI shall provide Cohen
with group term life insurance, health insurance, accident and long-term
disability insurance benefits (collectively, "Welfare Benefits") substantially
similar in all respects to those that Cohen was receiving immediately prior to
the Date of Termination (without giving effect to any reduction in such benefits
subsequent to a Change in Control). During the Benefits Period, Cohen shall be
entitled to elect to change his level of coverage and/or his choice of coverage
options with respect to the Welfare Benefits to be provided by RAI to Cohen to
the same extent that actively employed senior executives of RAI are permitted to
make such changes.

                   (3) Vesting of Options. Upon any termination of this
Agreement, the vesting of all options to purchase securities of RAI granted to
Cohen during his employment with RAI shall be accelerated to the later of the
effective date of termination of this Agreement, or six months after the date
such option was granted, and any provision contained in the agreements under
which such options were granted that is inconsistent with such acceleration is
hereby modified to the extent necessary to provide for such acceleration; such
acceleration shall not apply to any option that by its terms would vest prior to
the date provided for in this paragraph 7(d).

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         8. Gross-Up Payment.

              (a) In the event that (i) Cohen becomes entitled to any benefits
or payments in connection with the termination of Cohen's employment, whether
pursuant to the terms of this Agreement or otherwise, including without
limitation the Severance Benefits (collectively, the "Total Benefits"), and (ii)
any of the Total Benefits will be subject to the Excise Tax, RAI shall pay to
Cohen an additional amount (the "Gross-Up Payment") such that the net amount
retained by Cohen, after deduction of any Excise Tax on the Total Benefits and
any federal, state and local income taxes, Excise Tax, and FICA and Medicare
withholding taxes upon the payment provided for by this paragraph 8(a), shall be
equal to the Total Benefits. For purposes of determining whether any of the
Total Benefits will be subject to the Excise Tax and the amount of such Excise
Tax, the amount of the Total Benefits that shall be treated as subject to the
Excise Tax shall be equal to the amount of the Total Benefits reduced by the
amount of such Total Benefits that, in the opinion of tax counsel selected by
Cohen, at RAI's expense and reasonably acceptable to RAI ("Tax Counsel"), are
not excess parachute payments (within the meaning of Section 28OG(b)(1) of the
Code).

              (b) For purposes of this Section 8, Cohen shall be deemed to pay
federal income taxes at the highest marginal rate of federal income taxation in
the calendar year in which the Excise Tax is (or would be) payable and state and
local income taxes at the highest marginal rate of taxation in the state and
locality of Cohen's residence on the Date of Termination, net of the reduction
in federal income taxes which could be obtained from deduction of such state and
local taxes (calculated by assuming that any reduction under Section 68 of the
Code in the amount of itemized deductions allowable to Cohen applies first to
reduce the amount of such state and local income taxes that would otherwise be
deductible by Cohen). Except as otherwise provided herein, all determinations
required to be made under this Section 8 shall be made by Tax Counsel.

              (c) In the event that the Excise Tax is subsequently determined to
be less than the amount taken into account hereunder at the time of termination
of Cohen's employment, Cohen shall repay to RAI, at the time that the amount of
such reduction in Excise Tax is finally determined, the portion of the Gross-Up
Payment attributable to such reduction (plus that portion of the Gross-Up
Payment attributable to the Excise Tax, federal, state and local income taxes
and FICA and Medicare withholding taxes imposed on the Gross-Up Payment being

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repaid by Cohen to the extent that such repayment results in a reduction in
Excise Tax, FICA and Medicare withholding taxes and/or a federal, state or local
income tax deduction) plus interest on the amount of such repayment at the rate
provided in Section 1274(b)(2)(B) of the Code. In the event that the Excise Tax
is determined to exceed the amount taken into account hereunder at the time of
the termination of Cohen's employment (including by reason of any payment the
existence or amount of which cannot be determined at the time of the Gross-Up
Payment), RAI shall make an additional Gross-Up Payment to Cohen in respect of
such excess (plus any interest, penalties or additions payable by Cohen with
respect to such excess) at the time that the amount of such excess is finally
determined.

         9. Indemnification.

              (a) If Cohen is made a party or is threatened to be made a party
to or is involved in any action, suit or proceeding, whether civil, criminal,
administrative or investigative (herein a "proceeding"), by reason of the fact
that he is or was an employee (which term includes officer, director, agent and
any other capacity) of RAI or is or was serving at the request of RAI as an
employee or agent of another corporation or of a partnership, joint venture,
trust or other enterprise, including service with respect to employee benefit
plans, whether the basis of such proceeding is alleged action in an official
capacity as an employee or agent or in any other capacity while serving as an
employee or agent, Cohen shall be indemnified and held harmless by RAI to the
fullest extent authorized by applicable law, against all expense, liability and
loss (including, but not limited to, attorneys' fees, judgments, fines, ERISA
excise taxes and penalties and amounts paid or to be paid in settlement)
incurred or suffered by Cohen in connection therewith and such indemnification
shall continue as to Cohen after he has ceased to be a director, officer,
employee or agent and shall inure to the benefit of Cohen's heir, executors, and
administrators; provided, however, that RAI shall indemnify any such person
seeking indemnification in connection with a proceeding (or part thereof)
initiated by Cohen (other than a proceeding to enforce this paragraph 9) only if
such proceeding (or part thereof) was authorized directly or indirectly by the
Board of RAI. The right to indemnification conferred in this paragraph shall be
a contract right and shall include the right to be, promptly upon request, paid
by RAI the expenses incurred in defending any such proceeding in advance of its
final disposition; provided, however, that if the Business Corporation Law of
the Commonwealth of Pennsylvania requires the payment of such expenses incurred
by an employee in his capacity as an employee (and not in any other capacity in
which service was or is rendered by such person while a director or officer,
including, without limitation, service to an employee benefit plan) in advance
of the final disposition of a proceeding, payment shall be made only upon
delivery to RAI of an undertaking, by or on behalf of Cohen, to repay all
amounts so advanced if it shall ultimately be determined that such employee is
not entitled to be indemnified under this paragraph or otherwise.

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              (b) The indemnification provided by this paragraph shall not be
limited or exclude any rights, indemnities or limitations of liability to which
Cohen may be entitled, whether as a matter of law, under the Certificate of
Incorporation, By-laws of RAI, by agreement, vote of the stockholders or
disinterested directors of RAI or otherwise.

              (c) Cohen, in seeking indemnification under this Agreement (an
"Indemnitee"), shall give the other party or parties (the "Indemnitor") prompt
written notice of any claim, suit or demand that the Indemnitee believes will
give rise to indemnification under this Agreement; provided, however, that the
failure to give such notice shall not affect the liability of the Indemnitor
under this Agreement unless the failure to give such notice materially and
adversely affects the ability of the Indemnitor to defend itself against or to
cure or mitigate the damages. Except as hereinafter provided, the Indemnitor
shall have the right (without prejudice to the right of the Indemnitee to
participate at its expense through counsel of its own choosing) to defend and to
direct the defense against any such claim, suit or demand, at the Indemnitor's
expense and with counsel chosen jointly by Indemnitor and Indemnitee, and the
right to settle or compromise any such claim, suit or demand; provided, however,
that the Indemnitor shall not, without the Indemnitee's written consent, which
shall not be unreasonably withheld, settle or compromise any claim or consent to
any entry of judgment. The Indemnitee shall, at the Indemnitor's expense,
cooperate in the defense of any such claim, suit or demand. If the Indemnitor,
within a reasonable time after notice of a claim fails to defend the Indemnitee,
the Indemnitee shall be entitled to undertake the defense, compromise or
settlement of such claim at the expense of and for the account and risk of the
Indemnitor.

              (d) Cohen will be covered during the entire term of this Agreement
by Officer and Director liability insurance in amounts and on terms similar to
that afforded to other executives and/or directors of RAI or its affiliates,
which such insurance shall be paid by RAI.

         10. Definitions. Any terms not otherwise defined herein shall have the
following meaning:

              (a) "Average Compensation" means the average of the three highest
amounts of annual total compensation received by Cohen during any of the then
current calendar year (on an annualized basis) and the then preceding eight (8)
calendar years.

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              (b) "Board" means the Board of Directors of RAI.

              (c) A "Change in Control" means the occurrence of any of the
following events:

                   (1) RAI's shareholders approve (or, in the event no approval
of RAI's shareholders is required, RAI consummates) a merger, consolidation,
share exchange, division or other reorganization or transaction of RAI (a
"Fundamental Transaction") with any other corporation, other than a Fundamental
Transaction which would result in the voting securities of RAI outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving
entity) at least sixty percent (60%) of the combined voting power immediately
after such Fundamental Transaction of (i) RAI's outstanding securities, (ii) the
surviving entity's outstanding securities, or (iii) in the case of a division,
the outstanding securities of each entity resulting from the division;

                   (2) the shareholders of RAI approve a plan of complete,
liquidation or winding-up of RAI or an agreement for the sale or disposition (in
one transaction or a series of transactions) of all or substantially all of
RAI's assets; or

                   (3) during any period of twenty-four consecutive months,
individuals who at the beginning of such period constituted the Board (including
for this purpose any new director whose election or nomination for election by
RAI's shareholders was approved by a vote of at least two-thirds (2/3) of the
directors then still in office who were directors at the beginning of such
period) cease for any reason to constitute at least a majority of the Board.

              (d) "Code" means the Internal Revenue Code of 1986, as amended
from time to time.

              (e) "Control Effort" means any acting together or undertaking
efforts to act together by any Person or Persons, excluding employee benefit
plans of RAI, who are, or seek in any direct or indirect manner to become, the
"beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act
or any successor provisions thereto), directly or indirectly, of securities of
RAI representing twenty-five percent (25%) or more of the combined voting power
of RAI's then outstanding securities.

              (f) "Exchange Act" means the Securities Exchange Act of 1934, as
amended from time to time.

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              (g) "Excise Tax" means any excise tax imposed under Section 4999
of the Code or a similar provision that may later be enacted.

              (h) "Notice of Termination" After a Potential Change in Control or
a Change in Control, Cohen may terminate this Agreement by sending a written
notice to RAI that shall (i) specify the date of termination (the "Date of
Termination") which shall not be more than sixty (60) days from the date such
Notice of Termination is given, (ii) indicate the specific provisions of this
Agreement that will apply upon such termination and (iii) set forth in
reasonable detail the facts and circumstances for the application of the
provisions indicated.

              (i) "Person" shall have the meaning given in Section 3(a)(9) of
the Exchange Act and shall also include any syndicate or group deemed to be a
"person" under Section 13(d)(3) of the Exchange Act.

              (j) "Potential Change in Control" means the occurrence of any of
the following:

                   (1) the Board approves a transaction described in Subsection
(2) of the definition of Change in Control contained in paragraph 10(c) hereof;

                   (2) the commencement of a proxy or other contest or effort to
effectuate a Change in Control; or

                   (3) a Control Effort.

              (k) "RAI" means Resource America, Inc., a Delaware corporation and
any direct or indirect subsidiary of RAI by which Cohen is employed. References
to payments, benefits, privileges or other rights to be provided by RAI or such
subsidiary by which Cohen is employed, as the case may be, will correspond to
the corporate entity obligated to make payments or provide benefits, privileges
or other rights pursuant to employee benefit plans affected by the provisions
hereof, and in the absence of any such existing plans or provisions, such
reference shall be deemed to be to RAI. RAI shall also mean any successor by
merger or other business combination to more than one-half of the assets or
ownership of RAI.

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         11. Miscellaneous.

              (a) Severability. In case any one or more of the provisions
contained herein shall, for any reason, be held to be invalid, illegal, or
unenforceable in any respect such validity, illegality or unenforceability shall
not affect any other provisions of this Agreement, and this Agreement shall be
construed as if such invalid, illegal or unenforceable provision(s) had never
been contained herein, provided that such invalid, illegal or unenforceable
provision(s) shall first be curtailed, limited or eliminated only to the extent
necessary to remove such invalidity, illegality or unenforceability with respect
to the applicable law as it shall then be applied.

              (b) Modification of Agreement. This Agreement shall not be
modified by any oral agreement, either expressed or implied, and all
modifications thereof shall be in writing and signed by the parties hereto.

              (c) Waiver. The waiver of any right under this Agreement by any of
the parties hereto shall not be construed as a waiver of the same right at a
future time or as a waiver of any other rights under this Agreement.

              (d) Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Delaware, without
giving affect to the principles of conflicts of laws.

              (e) Notices. Any notice to be given pursuant to this Agreement
shall be sufficient if in writing and mailed by certified or registered mail,
postage-prepaid, to the addresses listed below, or to such other address as
either party may notify the other of in accordance with this section.

                  If to RAI:

                  Resource America, Inc.
                  1521 Locust Street
                  Suite 400
                  Philadelphia, PA  19102

                  If to Cohen:

                  Jonathan Z. Cohen
                  1521 Locust Street; Ste. 400
                  Philadelphia, PA 19102

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              (f) Duplicate Originals and Counterparts. This Agreement may be
executed in any number of duplicate originals or counterparts or facsimile
counterparts, each of such duplicate original or counterpart or facsimile
counterpart shall be deemed to be an original and all taken together shall
constitute but one and the same instrument.

                           [INTENTIONALLY LEFT BLANK]

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         IN WITNESS WHEREOF, the parties hereto have executed or caused to be
executed this Agreement on the date first above written.

                                           RESOURCE AMERICA, INC.

                                           By:
                                              -----------------------------

                                           JONATHAN Z. COHEN

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

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STATE OF PENNSYLVANIA   :
                        :
COUNTY OF PHILADELPHIA  :

         On this ___ day of October, 1999, before me, the undersigned, a Notary
Public in and for said state personally appeared Edward E. Cohen and Jonathan Z.
Cohen, on behalf of Resource America, Inc., a Delaware corporation, known to me
or proved to me to be the persons who executed the within instrument of behalf
of said corporation and acknowledged to me that they executed the same for the
purposes therein stated.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal, the day and year last above written.

                                            ------------------------------
                                                     Notary Public

My Commission Expires:<PAGE>
                               FIRST AMENDMENT TO
                                 LOAN AGREEMENT

                                      Among

                               ATLAS AMERICA, INC.

                              RESOURCE ENERGY, INC.

                          VIKING RESOURCES CORPORATION

                                as the Borrowers

                         PNC BANK, NATIONAL ASSOCIATION

                        as the Agent and the Issuing Bank

                            FIRST UNION NATIONAL BANK

                            as the Syndication Agent

                                       and

                             THE BANKS PARTY HERETO

                          Dated as of January 24, 2000

<PAGE>

                               FIRST AMENDMENT TO
                                 LOAN AGREEMENT

         THIS FIRST AMENDMENT TO LOAN AGREEMENT (the "First Amendment") made as
of January 24, 2000, to that certain Loan Agreement dated as of September 28,
1999 (the Loan Agreement, together with the exhibits and schedules thereto, the
"Existing Agreement") among ATLAS AMERICA, INC., a Pennsylvania corporation
("Atlas"), RESOURCE ENERGY, INC., a Delaware corporation ("REI") and VIKING
RESOURCES CORPORATION, a Pennsylvania corporation ("Viking"; Atlas, REI and
Viking, each, individually a "Borrower" and collectively the "Borrowers"), the
financial institutions listed on the signature pages thereto (collectively, the
"Banks", and each individually, a "Bank"), PNC BANK, NATIONAL ASSOCIATION as the
issuer of the Letters of Credit (in such capacity, the "Issuing Bank") and PNC
BANK, NATIONAL ASSOCIATION, in its capacity as Agent for the Banks (in such
capacity, the "Agent") and FIRST UNION NATIONAL BANK, in its capacity as
Syndication Agent.

                                   WITNESSETH:

         WHEREAS, the Borrowers, the Banks, and the Agent entered into the
Existing Agreement pursuant to which the Banks made certain financial
accommodations available to the Borrowers, including a revolving credit facility
in an aggregate principal amount not to exceed $45,000,000, with a subfacility
for the issuance of letters of credit in an aggregate principal amount not to
exceed $14,000,000, subject to certain individual and aggregate borrowing
limitations as more specifically described therein; and

         WHEREAS, to induce the Banks to enter into the Existing Agreement and
to make available to the Borrowers the credit accommodations thereunder, the
Borrowers executed and delivered (or caused certain direct or indirect
Subsidiaries of the Borrowers to execute and deliver) to the Agent (for the
benefit of the Banks) certain mortgages, security agreements and other Security
Documents; and

         WHEREAS, the Borrowers and certain of their direct and indirect
subsidiaries intend to enter into various agreements and to execute a number of
actions designed to convey certain of their natural gas gathering system assets
(as more fully defined below, the "Pipeline Assets") to a limited partnership
(as more fully defined below, the "Atlas Pipeline LP") in consideration of (i)
the issuance and transfer of certain ownership interests in the general partner
of the Atlas Pipeline LP, (ii) the assumption and repayment of certain
indebtedness of the Borrowers to the Banks, and (iii) the payment of certain
amounts to the Borrowers (all of the foregoing, the "MLP Transactions"); and

         WHEREAS, the Borrowers have requested that the Banks consent to the MLP
Transactions, and to (i) waive certain provisions of the Existing Agreement,
(ii) amend certain provisions of the Existing Agreement, and (iii) agree to
release the Liens on the Pipeline Assets granted to or created in favor of the
Agent (for the benefit of the Banks) pursuant to the Security Documents, all as
more particularly set forth below.

         NOW THEREFORE, in consideration of the mutual promises contained herein
and other good and valuable consideration, and with the intent to be legally
bound hereby, the parties hereto agree as follows:
<PAGE>
                                    ARTICLE I

                        AMENDMENTS TO EXISTING AGREEMENT
                        --------------------------------

         Section 1.1 Amended Definitions. On and after the First Amendment
Effective Date, Section 1.1 of the Existing Agreement is hereby amended such
that the following definitions shall be amended and restated in their entirety:

                           "Letter(s) of Credit" means any standby letter(s) of
         credit as to which the account party, the Issuing Bank and the
         beneficiary contemplate that the beneficiary will receive a direct
         payment from the account party and that the beneficiary shall draw upon
         the Letter of Credit only if the account party fails to honor its
         obligation to the beneficiary, including, but not limited to, standby
         letters of credit issued by the Issuing Bank in accordance with Section
         2.9 hereof, the Existing Letters of Credit and the MLP Letter of
         Credit.

                           "Partnership" and "Partnerships" shall have the
         meaning ascribed to each term in Section 2.3, and shall specifically
         exclude Atlas Pipeline LP and Atlas Pipeline Operating Partnership,
         L.P.

                           "Termination Date" shall mean June 1, 2003, or, if
         such day is not a Business Day, the Business Day next preceding such
         date.

         Section 1.2 Additional Definitions. On and after the First Amendment
Effective Date, Section 1.1 of the Existing Agreement is hereby amended such
that the following definitions shall be added thereto in the appropriate
alphabetical order:

                  "Atlas Pipeline LP" shall mean Atlas Pipeline Partners, L.P.,
         a Delaware limited partnership.

                  "Construction Financing Commitment" shall mean the commitments
         of Atlas and REI pursuant to the Omnibus Agreement to provide
         construction financing to Atlas Pipeline LP through the purchase from
         time to time of its common units, in an amount not to exceed $1,500,000
         in the aggregate during each 12 month period commencing on the date of
         the Omnibus Agreement and on each of the first four anniversaries of
         such date.

                  "Distribution Agreement" shall mean that certain Distribution
         Support Agreement to be entered into by and among Atlas Pipeline LP and
         Atlas Pipeline Partners GP, LLC, in substantially the form attached to
         the Form S-1 Registration Statement No. 333-85193, as amended, filed
         with respect to the public offering of the common units of Atlas
         Pipeline LP, as such agreement may be amended, extended, renewed or
         replaced from time to time.

                  "First Amendment Effective Date" shall mean January 24, 2000.

                  "Master Natural Gas Agreement" shall mean that certain Master
         Natural Gas Gathering Agreement to be entered into by and among the
         Borrowers and certain Restricted Subsidiaries, Atlas Pipeline LP and
         Atlas Pipeline Operating Partnership, L.P. relating to the
         transportation of gas and oil produced by the Borrowers and the

                                      -2-
<PAGE>
         Restricted Subsidiaries and in substantially the form attached to the
         Form S-1 Registration Statement No. 333-85193, as amended, filed with
         respect to the public offering of the common units of Atlas Pipeline
         LP, as such agreement may be amended, extended, renewed or replaced
         from time to time.

                  "MLP Letter of Credit" shall mean that certain standby letter
         of credit issued by the Issuing Bank for the account of Atlas Pipeline
         Partners GP, LLC and for the benefit of Atlas Pipeline LP in an initial
         stated amount not to exceed $8,694,000, and having an expiration date
         of June 1, 2003, together with all extensions, renewals and amendments
         thereto and thereof.

                  "MLP Transactions" shall mean, collectively (i) the formation,
         mergers, divisions, contributions and other transfers of interests in
         certain corporations, limited liability companies and partnerships,
         (ii) the conveyances of Pipeline Assets, (iii) the sale to the public
         of common units in Atlas Pipeline LP, (iv) the disposition of the
         proceeds of such sale, and (v) certain other actions, all as more fully
         described on Schedule 1 to the First Amendment.

                  "Omnibus Agreement" shall mean that certain Omnibus Agreement
         to be entered into by and among the Borrowers, Atlas Pipeline LP and
         Atlas Pipeline Operating Partnership, L.P., in substantially the form
         attached to the Form S-1 Registration Statement No. 333-85193, as
         amended, filed with respect to the public offering of the common units
         of Atlas Pipeline LP, as such agreement may be amended, extended,
         renewed or replaced from time to time.

                  "Pipeline Assets" shall mean those assets comprising the
         natural gas gathering system to be conveyed by the Borrowers and
         certain Restricted Subsidiaries to Atlas Pipeline LP through Atlas
         Pipeline Operating Partnership, L.P. as such assets are further
         described on Schedule 2 to the First Amendment.

         Section 1.3 Deleted Definition. On and after the First Amendment
Effective Date, Section 1.1 of the Existing Agreement is amended by deleting the
following defined term:

                           Individual Collateral Value Reduction Amount

         Section 1.4 Amendments to Section 2.2. On and after the First Amendment
Effective Date, Section 2.2 of the Existing Agreement is amended as follows:

                           (i) Section 2.2 of the Existing Agreement is hereby
         amended to delete therefrom each reference to the "Individual
         Collateral Value Reduction Amounts".

                           (ii) Section 2.2 of the Existing Agreement is hereby
         amended to delete therefrom clause (iii) of Subsection 2.2(d).

         Section 1.5 Amendments to Section 2.9 . On and after the First
Amendment Effective Date, Section 2.9 of the Existing Agreement is amended as
follows:

                  (i) Clause (i) of Subsection 2.9(a) of the Existing Agreement
is hereby amended and restated to read as follows:

                                      -3-
<PAGE>

                           (i) With the exception of the MLP Letter of Credit,
         no Letter of Credit shall be issued hereunder which has an expiry date
         later than the earlier of (x) one (1) year from the date of issuance
         thereof or (y) five (5) Business Days prior to the Termination Date;
         provided, however, that any Letter of Credit with a one (1) year
         maturity may provide for the renewal thereof for an additional one (1)
         year period, which shall in no event extend beyond five (5) Business
         Days prior to the Termination Date. The MLP Letter of Credit shall not
         have an expiry date later than the Termination Date.

                  (ii) Clause (iii) of Subsection 2.9(a) of the Existing
Agreement is hereby amended to delete therefrom the reference to "Fourteen
Million ($14,000,000) Dollars" contained therein, and to substitute therefor a
reference to "Ten Million ($10,000,000) Dollars".

         Section 1.6 Amendment to Section 4.1. On and after the First Amendment
Effective Date, Section 4.1 of the Existing Agreement is amended to insert at
the end thereof the following new paragraphs F, G and H:

                           F. One or more Pledge Agreements (or amendments
         thereto) in form and substance satisfactory to the Banks, which shall
         assign to Agent, and grant to Agent, on behalf of the Banks, a lien on
         and security interest in, all right, title and interest of the
         Borrowers and the Restricted Subsidiaries in and to (i) the membership
         units of Atlas Pipeline Partners GP, LLC, and (ii) the common units of
         Atlas Pipeline LP, together, with undated stock powers executed in
         blank.

                           G. One or more collateral assignments of contract
         rights in form and substance satisfactory to the Banks, which shall
         collaterally assign to Agent, and grant to Agent on behalf of the
         Banks, a security interest in and to all right, title, interest of the
         Borrowers and the Restricted Subsidiaries pursuant to the Master
         Natural Gas Agreement, together with the written consent of Atlas
         Pipeline LP to such collateral assignment.

                           H. One or more Pledge Agreements in form and
         substance satisfactory to the Banks, which shall assign to Agent, and
         grant to Agent, on behalf of the Banks, a lien on and security interest
         in, all right, title and interest of Atlas Pipeline Partners GP, LLC in
         and to common units (subordinated or otherwise) of Atlas Pipeline LP,
         together with undated stock powers executed in blank.

         Section 1.7 Amendment to Section 5.17. On and after the First Amendment
Effective Date, Section 5.17 of the Existing Agreement is amended to amend and
restate clause (ii) of the second paragraph thereof, which sets forth the
definition of the term "EBITDA", to read as follows:

                           (ii) the term "EBITDA" shall mean the sum (determined
         in accordance with GAAP) of the Borrowers' Combined net income plus
         interest expense plus tax expense plus depreciation plus amortization
         plus other noncash charges to income minus noncash credits to income
         minus any equity in earnings attributable to Atlas Pipeline LP plus any
         distributions received by the Borrowers from Atlas Pipeline LP;
         provided, however, that for the purposes of this Section 5.17 only, any
         of the foregoing items earned from or expensed with respect to the
         Pipeline Assets shall be excluded from the calculation of EBITDA.

                                      -4-
<PAGE>

         Section 1.8 Amendment to Section 5.18. On and after the First Amendment
Effective Date, Section 5.18 of the Existing Agreement is hereby amended and
restated to read as follows:

                           5.18 Fixed Charge Coverage Ratio. The EBITDA of the
         Borrowers on a Combined basis (calculated for the four most recently
         completed fiscal quarters) divided by the sum of (i) the interest
         expense of Borrowers on a Combined basis (calculated for the four most
         recently completed fiscal quarters) plus (ii) Current Maturities of
         Long Term Debt of Borrowers on a Combined basis plus (iii) the
         aggregate amount of cash payments of contingent consideration made by
         or on behalf of Viking pursuant to Section 3.3c of the Acquisition
         Agreement during the four most recently completed fiscal quarters plus
         (iv) any payments made by the Borrowers to purchase common units in
         Atlas Pipeline LP pursuant to the Construction Financing Commitment,
         must not be less than the following ratios for the fiscal periods
         ending on the following dates (inclusive):

                           Fiscal Periods Ending:            Minimum Ratio:
                           ----------------------            -------------

                           9/30/99 through 6/30/00            1.50 to 1.00
                           9/30/01 through 12/31/01           2.00 to 1.00
                           3/31/02 and each fiscal            2.50 to 1.00
                             period ending thereafter

                           For the purposes of this Section 4.18, the term
         "Current Maturities of Long Term Debt" shall mean that portion of the
         Borrowers' total indebtedness for money borrowed or credit advanced
         (other than (i) trade credit incurred in the ordinary course of
         business and (ii) indebtedness to the Banks under the Revolving
         Credit), however evidenced, which had a scheduled maturity during the
         preceding four fiscal quarters.

         Section 1.9 Amendment to Section 5.19. On and after the First Amendment
Effective Date, Section 5.19 of the Existing Agreement is hereby amended and
restated to read as follows:

                           5.19 Minimum Combined Tangible Net Worth. The
         Combined Tangible Net Worth of the Borrowers shall at all times exceed
         the sum of (i) eighty-five (85%) percent of the Combined Tangible Net
         Worth of the Borrowers as of December 31, 1999 (provided that the
         Combined Tangible Net Worth of the Borrowers on such date shall not be
         less than $27,000,000), plus (ii) an amount equal to fifty percent
         (50%) of the cumulative positive Combined net income of the Borrowers
         earned after December 31, 1999, plus (iii) any gain recognized by the
         Borrowers on the sale of the Pipeline Assets minus (iv) the amount of
         any permitted distribution made by the Borrowers to Resource America,
         Inc. from the proceeds of the sale of the Pipeline Assets.

         Section 1.10 Amendment to Section 6.3. On and after the First Amendment
Effective Date, Section 6.3 of the Existing Agreement is amended to insert at
the end thereof the following language: "and (v) except for the obligations of
Atlas Pipeline Partners GP, LLC to Atlas Pipeline LP under the Distribution
Support Agreement."

         Section 1.11 Amendment to Section 6.4. On and after the First Amendment
Effective Date, Section 6.4 of the Existing Agreement is amended to insert at

                                      -5-
<PAGE>
the end thereof the following language: "and (iv) the obligations to make
certain payments under the Master Natural Gas Agreement, the Distribution
Support Agreement and the Omnibus Agreement, including without limitation the
Construction Financing Commitment."

         Section 1.12 Amendment to Section 6.5. On and after the First Amendment
Effective Date, Section 6.5 of the Existing Agreement is amended to insert at
the end thereof the following language: ", (ix) purchases of common units of
Atlas Pipeline LP pursuant to the Construction Financing Commitment, provided
that such common units be pledged to the Agent (for the benefit of the Banks) in
accordance with Section 4.1F hereof, and (x) payments by or on behalf of Atlas
Pipeline Partners GP, LLC to Atlas Pipeline LP under the Distribution Support
Agreement."

         Section 1.13 Amendment to Section 6.6(b). On and after the First
Amendment Effective Date, Section 6.6(b) of the Existing Agreement is amended to
insert at the end thereof the following language: "and perform certain
administrative and management services on behalf of Atlas Pipeline LP and Atlas
Pipeline Operating Partnership, L.P. pursuant to the Omnibus Agreement."

         Section 1.14 Amendment to Section 8.2. On and after the First Amendment
Effective Date, Section 8.2 of the Existing Agreement is amended to insert at
the end of the first sentence thereof the following language: ", (vii) for the
purpose of purchasing common units of Atlas Pipeline LP pursuant to the
Construction Financing Commitment, provided that at the time of purchase such
common units do not constitute margin stock within the meaning of Regulation U
of the Board of Governors of the Federal Reserve System, and (viii) with respect
to the issuance of the MLP Letter of Credit only, to secure the obligations of
Atlas Pipeline Partners GP, LLC under the Distribution Support Agreement."

         Section 1.15 Amendment to Section 9. On and after the First Amendment
Effective Date, Section 9 of the Existing Agreement is amended to insert after
Paragraph M thereof the following new Paragraphs N and O:

                           N. Any default occurs under the Distribution
         Agreement, the Master Gas Gathering Agreement or the Omnibus Agreement
         which gives any party thereto the right to terminate such agreement, or
         any such agreement is amended, modified or terminated without the prior
         written consent of the Banks;

                           O. Atlas Pipeline LP or Atlas Pipeline Operating
         Partnership, L.P. becomes insolvent, becomes the subject of any action
         in bankruptcy, dissolves or terminates its existence, or Atlas Pipeline
         Partners GP, LLC withdraws or is removed as the general partner of
         either such partnership, without the prior written consent of the
         Banks.

         Section 1.16 Amendments re: Exhibits, Schedules and Annex. On and after
the First Amendment Effective Date, the Existing Agreement is further amended to
delete therefrom Schedule 3.2 thereto, and to substitute therefor Schedule 3.2
attached hereto and made a part hereof.

         Section 1.17 No Other Amendments or Waivers. The amendments to the
Existing Agreement set forth in Sections 1.1 through 1.16 inclusive above do not
either implicitly or explicitly alter, waive or amend, except as expressly
provided in this First Amendment, the provisions of the Existing Agreement. The
amendments set forth in Sections 1.1 through 1.16 inclusive hereof do not waive,

                                      -6-
<PAGE>
now or in the future, compliance with any other covenant, term or condition to
be performed or complied with nor do they impair any rights or remedies of the
Banks or the Agent under the Existing Agreement with respect to any such
violation. Nothing in this First Amendment shall be deemed or construed to be a
waiver or release of, or a limitation upon, the Agent's or any Bank's exercise
of any of its rights and remedies under the Existing Agreement and the other
Loan Documents, whether arising as a consequence of any Events of Default which
may now exist or otherwise, and all such rights and remedies are hereby
expressly reserved.

                                   ARTICLE II

                          CERTAIN CONSENTS, WAIVERS AND
                    AGREEMENTS REGARDING THE MLP TRANSACTIONS
                    -----------------------------------------

         Section 2.1 Consents and Waivers Regarding the MLP Transactions.
Subject to the terms and conditions of this First Amendment, the Banks hereby
(i) consent to the consummation and completion of the MLP Transactions, and (ii)
waive any violation of Sections 5.7, 6.1, 6.5, 6.7 or 6.8 of the Agreement which
would otherwise be caused by the consummation or completion of the MLP
Transactions. The foregoing consent and waiver is conditioned upon the
completion of the public offering of the common units of Atlas Pipeline LP and
the satisfaction of the other conditions precedent to the release of Liens by
the Banks in connection therewith set forth in Section 2.2 of this First
Amendment within thirty (30) days of the First Amendment Effective Date; in the
event that these conditions subsequent to the foregoing consent and waiver is
not satisfied, then the Borrowers shall take, or cause to be taken, such actions
as the Banks may require, which may include, but shall not be limited to,
unwinding (to the extent practicable) the MLP Transactions or delivering, or
causing to be delivered, to the Banks additional or amended Security Documents
or other further assurances. The assumption by any third party of any portion of
the Obligations in connection with or pursuant to the MLP Transactions shall in
no way release or relieve the Borrowers or Restricted Subsidiaries from
liability to the Banks with respect to such portion of the Obligations.

         Section 2.2 Conditions Precedent to Release of Liens on Pipeline
Assets. Subject to the terms and conditions of this First Amendment, the Banks
hereby agree to release their Liens on the Pipeline Assets. Each of the
following shall be a condition precedent to the release by the Banks of their
Liens upon the Pipeline Assets and to the delivery by the Agent of appropriate
documentation to evidence such release, including partial releases of mortgages
and Uniform Commercial Code Form UCC-3 Financing Statement partial releases:

                  (i) The conditions precedent to the effectiveness of this
         First Amendment set forth in Article IV hereof shall be satisfied.

                  (ii) The Agent shall have received (for the ratable benefit of
         the Banks) a payment in the amount necessary to reduce the then current
         Aggregate Outstandings (after giving effect to the issuance of the MLP
         Letter of Credit) to the Aggregate Collateral Value as set forth in
         Section 2.3 below.

                  (iii) The Banks shall have received satisfactory evidence that
         the MLP Transactions have been completed, and the Distribution Support
         Agreement, the Master Gas Gathering Agreement and the Omnibus Agreement
         have been executed by the respective parties thereto.

                                      -7-
<PAGE>

                  (iv) The Agent shall have received true and correct copies of
         the executed Distribution Support Agreement, the Master Gas Gathering
         Agreement and the Omnibus Agreement.

                  (v) The Agent shall have received a certification from each
         Borrower that its articles or certificate of incorporation and its
         respective bylaws which were previously delivered to the Agent continue
         to remain complete and correct and in full force and have not been
         further amended, supplemented or otherwise modified (except as set
         forth in such certificate).

                  (vi) The Banks shall have received satisfactory evidence that
         the Borrowers and Restricted Subsidiaries shall have received cash from
         the proceeds of the MLP Transactions in an amount at least equal to
         $14,000,000, net of transaction costs associated with the MLP
         Transactions and including any amounts paid to the Agent (for the
         benefit of the Banks) from the proceeds of the MLP Transaction.

                  (vii) The Agent shall have received duly executed copies of
         the following documents:

                           (a) A Guaranty Agreement executed by Atlas Pipeline
         Partners GP, LLC, whereby such entity shall guarantee, and be surety
         for, the payment and performance of the obligations of the Borrowers to
         the Banks under and with respect to the MLP Letter of Credit, together
         with certified copies of its organizational documents and authorizing
         resolutions, an incumbency certificate and recent good standing or
         subsistence certificate;

                           (b) One or more Pledge Agreements securing the
         Indebtedness and executed by the Borrowers and the Restricted
         Subsidiaries with respect to (x) any common units of Atlas Pipeline LP
         now owned or hereafter acquired by such entities and (y) any membership
         units of Atlas Pipeline Partners GP, LLC now owned or hereafter
         acquired by such entities;

                           (c) A collateral assignment securing the Indebtedness
         and executed by the Borrowers and the Restricted Subsidiaries which are
         party to the Master Gas Gathering Agreement with respect to their
         rights under such agreement, together with a consent to such collateral
         assignment executed by Atlas Pipeline LP and Atlas Pipeline Operating
         Partnership, LP;

                           (d) One or more Pledge Agreements securing the
         Guaranty Agreement referred to in item (a) above and executed by Atlas
         Pipeline Partners GP, LLC with respect to any common units
         (subordinated or otherwise) of Atlas Pipeline LP now owned or hereafter
         acquired by such entity.

                  (viii) The Agent shall have received such assumption
         agreements, amendments or acknowledgments to Loan Documents as
         requested by Agent and executed by the entity which is the successor by
         division to St. Julien III Corporation, and which succeeds to the
         ownership of St. Julien III Corporation's assets other than Pipeline
         Assets.

                                      -8-
<PAGE>

         The Agent and the Banks hereby agree to deliver to the Borrowers such
further release documentation reasonably requested by the Borrowers to give
effect to the terms of this Section 2.2, all at the sole cost and expense of the
Borrowers.

         Section 2.3 Reduction of Collateral Values; Designated Borrower Re: MLP
Letter of Credit. Notwithstanding any provision of the Agreement to the
contrary, effective upon the consummation of the MLP Transactions, (i) the
Individual Collateral Values with respect to each Borrower, until such amounts
are redetermined pursuant to Section 2.4 of this First Amendment, shall be as
follows: (x) the Individual Collateral Value for Atlas shall be $18,000,000, (y)
the Individual Collateral Value for Viking shall be $12,000,000, and (z) the
Individual Collateral Value for REI shall be $5,000,000, and (ii) therefore, the
Aggregate Collateral Value (the sum of the foregoing Individual Collateral
Values) shall be $35,000,000. Notwithstanding any provision of the Agreement to
the contrary, the Stated Amount of the MLP Letter of Credit at any time during
the term thereof shall, unless and until the Borrowers give notice to the Agent
to the contrary, be allocated among Viking, REI and Atlas pro rata on the
following basis: (x) Viking, 35%; (y) Atlas, 50%, and (z) REI, 15%.

         Section 2.4 Individual Collateral Value Redetermination.
Notwithstanding any provision contained in the Agreement to the contrary, the
Borrowers shall, within thirty (30) days of the First Amendment Effective Date,
deliver to the Agent such Engineering Reports and other information meeting the
requirements of Section 2.3 of the Agreement to permit the Banks to make a
special redetermination of the Individual Collateral Values in accordance with
Sections 2.2 and 2.3 of the Agreement. This special redetermination is in lieu
of the scheduled annual determination which was to have been made on the basis
of Engineering Reports to be dated as of September 30, 1999, which annual
determination is hereby specifically waived by the Banks.

         Section 2.5 Consent to Distribution to Resource America, Inc. To the
extent that the Borrowers and Restricted Subsidiaries receive payments of
proceeds of the MLP Transactions in excess of the amount required in Section
2.2(vi) of this First Amendment, (i) the Banks hereby consent to the Borrowers
making a distribution of such excess (in an aggregate amount not to exceed
$1,000,000) to Resource America, Inc., and (ii) the Banks hereby waive any
violation of Section 6.10 of the Agreement which would otherwise result from the
Borrowers making such distribution.

         Section 2.6 Consent to Sale of Office Buildings. The Borrowers have
requested that the Banks consent to (i) the sale by REI of its office building
located in Akron, Ohio, and (ii) the sale by Viking of its office building
located in Canton, Ohio. The Banks hereby (x) consent to each of these
transactions and (y) waive any violation of Section 6.1 of the Agreement which
would otherwise be caused by the consummation of such transactions.

                                   ARTICLE III

                     BORROWERS' SUPPLEMENTAL REPRESENTATIONS

         Section 3.1 Incorporation by Reference. As an inducement to the Agent
and the Banks to enter into this First Amendment, the Borrowers hereby repeat
herein for the benefit of the Agent and the Banks the representations and
warranties made by the Borrowers in Sections 3.1 through 3.22, inclusive, of the
Existing Agreement, as amended hereby, except that for purposes hereof such
representations and warranties shall be deemed to extend to and cover this First
Amendment.

                                      -9-
<PAGE>

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

         Section 4.1 Conditions Precedent. Each of the following shall be a
condition precedent to the effectiveness of this First Amendment:

                           (i) The Agent shall have received, on or before the
         First Amendment Effective Date, duly executed counterpart originals of
         this First Amendment; and

                           (ii) The following statements shall be true and
         correct on the First Amendment Effective Date and the Agent shall have
         received a certificate signed by an authorized officer of each
         Borrower, dated the First Amendment Effective Date, stating that:

                                    (A) except to the extent modified in
                  connection with this First Amendment, the representations and
                  warranties made pursuant to Section 3.1 of this First
                  Amendment and in the other Loan Documents are true and correct
                  in all material respects on and as of the First Amendment
                  Effective Date as though made on and as of such date;

                                    (B) no default under Section 9 of the
                  Agreement or event which, with the giving of notice or passage
                  of time or both, would become a default under Section 9 of the
                  Agreement has occurred and is continuing, or would result from
                  the execution of or performance under this First Amendment;
                  and

                                    (C) the Borrowers have in all material
                  respects performed all agreements, covenants and conditions
                  required to be performed on or prior to the date hereof under
                  the Existing Agreement and the other Loan Documents.

                           (iii) The Agent shall have received on or before the
         First Amendment Effective Date copies of board of directors or
         shareholder action of the Borrowers authorizing the execution and
         delivery of this First Amendment.

                           (iv) The Agent shall have received on or before the
         First Amendment Effective Date, a certificate signed by an authorized
         officer of each Borrower with respect to incumbency and the articles or
         certificate of incorporation and bylaws of each such entity.

                                      -10-
<PAGE>

                                    ARTICLE V

                               GENERAL PROVISIONS

         Section 5.1 Ratification of Terms. Except as expressly amended by this
First Amendment, the Existing Agreement and each and every representation,
warranty, covenant, term and condition contained therein is specifically
ratified and confirmed in all material respects.

         Section 5.2 References. All notices, communications, agreements,
certificates, documents or other instruments executed and delivered after the
execution and delivery of this First Amendment in connection with the Agreement,
any of the other Loan Documents or the transactions contemplated thereby may
refer to the Existing Agreement without making specific reference to this First
Amendment, but nevertheless all such references shall include this First
Amendment unless the context requires otherwise. On and after the First
Amendment Effective Date, all references in the Existing Agreement and each of
the other Loan Documents to the "Agreement" shall be deemed to be references to
the Existing Agreement as amended hereby.

         Section 5.3 Counterparts. This First Amendment may be executed in
different counterparts, each of which when executed by a Borrower, a Bank and
the Agent shall be regarded as an original, and all such counterparts shall
constitute one First Amendment.

         Section 5.4 Capitalized Terms. Except for proper nouns and as otherwise
defined herein, capitalized terms used herein as defined terms shall have the
meanings ascribed to them in the Existing Agreement, as amended hereby.

         Section 5.5 Governing Law. THIS FIRST AMENDMENT AND THE RIGHTS AND
OBLIGATIONS HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS OF THE COMMONWEALTH OF PENNSYLVANIA WITHOUT REGARD TO THE PROVISIONS
THEREOF REGARDING CONFLICTS OF LAW.

         Section 5.6 Headings. The headings of the sections in this First
Amendment are for purposes of reference only and shall not be deemed to be a
part hereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -11-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto, intending to be legally bound
hereby, have caused this First Amendment to be duly executed by their proper and
duly authorized officers the day first above written.
<TABLE>
<S>                                                           <C>
WITNESS:                                                      ATLAS AMERICA, INC.

                                                              By:                                            (SEAL)
-----------------------------------------------------             -------------------------------------------
                                                              Name
                                                                   ------------------------------------------------
                                                              Title
                                                                    -----------------------------------------------

WITNESS:                                                      RESOURCE ENERGY, INC.

                                                              By:                                            (SEAL)
-----------------------------------------------------             -------------------------------------------
                                                              Name
                                                                   ------------------------------------------------
                                                              Title
                                                                    -----------------------------------------------

WITNESS:                                                      VIKING RESOURCES CORPORATION

                                                              By:                                            (SEAL)
-----------------------------------------------------             -------------------------------------------
                                                              Name
                                                                   ------------------------------------------------
                                                              Title
                                                                    -----------------------------------------------

                                                              PNC BANK, NATIONAL ASSOCIATION,
                                                              as a Bank and as Agent

                                                              By:
                                                                  -------------------------------------------------
                                                              Name
                                                                   ------------------------------------------------
                                                              Title
                                                                    -----------------------------------------------

                                                              FIRST UNION NATIONAL BANK, as a Bank

                                                              By:
                                                                  -------------------------------------------------
                                                              Name
                                                                   ------------------------------------------------
                                                              Title
                                                                    -----------------------------------------------

                                                              KEYBANK NATIONAL ASSOCIATION, as a Bank

                                                              By
                                                                 --------------------------------------------------
                                                              Name
                                                                   ------------------------------------------------
                                                              Title
                                                                    -----------------------------------------------
</TABLE>
                                      -12-

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