Document:

ex4_1.htm

    
      

    

     

    Exhibit
      4.1

    

    

    BANK
      OF
      MARIN BANCORP

     

    2007
      EMPLOYEE STOCK PURCHASE PLAN

     

    The
      following constitute the provisions of the 2007 Employee Stock Purchase Plan
      of
      Bank of Marin Bancorp.  The Plan was originally adopted by the Board
      of Bank of Marin (the “Bank”) on October 20, 2005 effective as of
      January 1, 2006 and by the Bank’s shareholders on July 18, 2006, subject to
      obtaining a permit for the issuance of shares under the Plan from the Department
      of Financial Institutions.  The Plan was assumed by the Bank of Marin
      Bancorp pursuant to that certain Plan of Reorganization and Agreement of Merger,
      dated March 8, 2007, (the “Reorganization”) adopted by Bank of Marin Bancorp as
      part of the holding company reorganization in which the Bank became a
      wholly-owned subsidiary of Bank of Marin Bancorp. The Reorganization became
      effective on July 1, 2007 (the "Effective Date").

     

    1.           Purpose.  The
      purpose of the Plan is to provide employees of the Company with an opportunity
      to purchase Common Stock of the Company through accumulated payroll
      deductions.  It is the intention of the Company to have the Plan
      qualify as an "Employee Stock Purchase Plan" under Section 423 of the
      Internal Revenue Code of 1986, as amended.  The provisions of the
      Plan, accordingly, shall be construed so as to extend and limit participation
      in
      a manner consistent with the requirements of that section of the
      Code.

     

    2.           Definitions.

     

    (a)           "Board"
      shall mean the Board of Directors of the Bank of Marin Bancorp.

     

    (b)           "Code"
      shall mean the Internal Revenue Code of 1986, as amended.

     

    (c)           "Common
      Stock" shall mean the common stock of Bank of Marin Bancorp.

     

    (d)           "Company"
      shall mean Bank of Marin Bancorp and any of its consolidated subsidiaries,
      including the Bank.

     

    (e)           "Compensation"
      shall mean all base straight time gross earnings, but exclusive of payments
      for
      overtime, incentive compensation, incentive payments, bonuses and other
      compensation.

     

    (f)           "Employee"
      shall mean any individual who is an Employee of the Company, whose customary
      employment with the Company is at least twenty (20) hours per
      week.  For purposes of the Plan, the employment relationship shall be
      treated as continuing intact while the individual is on sick leave or other
      leave of absence approved by the Company.  Where the period of leave
      exceeds 90 days and the individual's right to re-employment is not
      guaranteed either by statute or by contract, the employment relationship shall
      be deemed to have terminated on the 91st day of such
      leave.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g)           "Enrollment
      Date" shall mean the first Trading Day of each Offering Period.

     

    (h)           "Exercise
      Date" shall mean the last Trading Day of each Purchase Period.

     

    (i)           "Fair
      Market Value" shall mean, as of any date, the value of Common Stock determined
      by the closing sales price for such stock (or the closing bid, if no sales
      were
      reported) as quoted on such exchange or system on the date of such
      determination, as reported in The Wall Street Journal or such other source
      as
      the Board deems reliable;

     

    (j)           "Offering
      Periods" shall mean the periods of approximately three (3) months during which
      an option granted pursuant to the Plan may be exercised, commencing on the
      first
      Trading Day on or after the first day of a calendar quarterly period of each
      year and terminating on the last Trading Day in the quarterly period except
      that
      if an Offering Period  would otherwise end before the date of approval
      of the Plan by the Shareholders of the Company then that Offering Period will
      be
      extended to the date five days after such Shareholder approval.  The
      duration and timing of Offering Periods may be changed pursuant to
      Section 4 of this Plan.

     

    (k)           "Plan"
      shall mean this 2007 Employee Stock Purchase Plan.

     

    (l)           "Purchase
      Period" shall mean the approximately three-month period commencing after one
      Exercise Date and ending with the next Exercise Date, except that the first
      Purchase Period of any Offering Period shall commence on the Enrollment Date
      and
      end with the next Exercise Date and except that if a Purchase Period would
      otherwise end before the date of approval of the Plan by the Shareholders of
      the
      Company, then that Purchase Period will be extended to the date five days after
      such Shareholder approval.

     

    (m)           "Purchase
      Price" shall mean 95% of the Fair Market Value of a share of Common Stock on
      the
      Exercise Date.

     

    (n)           "Reserves"
      shall mean the number of shares of Common Stock covered by each option under
      the
      Plan which have not yet been exercised and the number of shares of Common Stock
      which have been authorized for issuance under the Plan but not yet placed under
      option.

     

    (o)           "Trading
      Day" shall mean a day on which national stock exchanges and the Nasdaq System
      are open for trading.

     

    3.           Eligibility.

     

    (a)           Any
      Employee who shall be employed by the Company shall be eligible to participate
      in the Plan.

     

    (b)           Any
      provisions of the Plan to the contrary notwithstanding, no Employee shall be
      granted an option under the Plan (i) to the extent that, immediately after
      the grant, such Employee (or any other person whose stock would be attributed
      to
      such Employee pursuant to Section 424(d) of the Code) would own capital stock
      of
      the Company and/or hold outstanding options to purchase such stock possessing
      five percent (5%) or more of the total combined voting power or value of all
      classes of the capital stock of the Company or of any Subsidiary, or
      (ii) to the extent that his or her rights to purchase stock under all
      employee stock purchase plans of the Company and its subsidiaries accrues at
      a
      rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of stock
      (determined at the fair market value of the shares at the time such option
      is
      granted) for each calendar year in which such option is outstanding at any
      time.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.           Offering
      Periods.  The Plan shall be implemented by consecutive,
      overlapping Offering Periods with a new Offering Period commencing on the first
      Trading Day on or after the first day of each calendar quarter each year, or
      on
      such other date as the Board shall determine, and continuing thereafter until
      terminated in accordance with Section 20 hereof.  The Board shall
      have the power to change the duration of Offering Periods (including the
      commencement dates thereof) with respect to future offerings without shareholder
      approval if such change is announced at least five (5) days prior to the
      scheduled beginning of the first Offering Period to be affected
      thereafter.

     

    5.           Participation.  An
      eligible Employee may become a participant in the Plan by completing a
      subscription agreement authorizing payroll deductions in the form of
      Exhibit A to this Plan and filing it with the Human Resources Benefits
      Administrator prior to the applicable Enrollment
      Date.  Notwithstanding the foregoing, all eligible Employees shall be
      automatically enrolled as a participant in the Plan in the first Offering
      Period.

     

    6.           Payroll
      Deductions.

     

    (a)           A
      participant may purchase shares of Common Stock under the Plan solely by means
      of payroll deductions:  provided, however, that in the first Offering
      Period, participants may also purchase shares of Common Stock by making a lump
      sum cash payment at the end of the Offering Period.  At the time a
      participant files his or her subscription agreement, he or she shall elect
      to
      have payroll deductions made on each pay day during the Offering Period in
      increments of not less than one percent (1%) or greater than fifteen percent
      (15%) of the Compensation which he or she receives on each pay day during the
      Offering Period.  Payroll deductions for a participant shall commence
      on the first payroll following the Enrollment Date and shall end on the last
      payroll in the Offering Period to which such authorization is applicable, unless
      sooner terminated by the participant as provided in Section 10
      hereof.

     

    (b)           All
      payroll deductions made for a participant shall be credited to his or her
      account under the Plan and shall be withheld in whole percentages
      only.  A participant may not make any additional payments into such
      account.

     

    (c)           A
      participant may discontinue his or her participation in the Plan as provided
      in
      Section 10 hereof, or may increase or decrease the rate of his or her
      payroll deductions during the Offering Period by completing or filing with
      the
      Company's Benefits Administration a new subscription agreement authorizing
      a
      change in payroll deduction rate.  The Board may, in its discretion,
      limit the number of participation rate changes during any Offering
      Period.  The change in rate shall be effective with the first full
      payroll period following five (5) business days after the Company's receipt
      of
      the new subscription agreement unless the Company elects to process a given
      change in participation more quickly.  A participant's subscription
      agreement shall remain in effect for successive Offering Periods unless
      terminated as provided in Section 10 hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)           Notwithstanding
      the foregoing, to the extent necessary to comply with Section 3(b) hereof,
      a participant's payroll deductions may be decreased to zero percent (0%) at
      any
      time during a Purchase Period.  Payroll deductions shall recommence at
      the rate provided in such participant's subscription agreement at the beginning
      of the first Purchase Period which is scheduled to end in the following calendar
      year, unless terminated by the participant as provided in Section 10
      hereof.

     

    (e)           At
      the time the option is exercised, in whole or in part, or at the time some
      or
      all of the Company's Common Stock issued under the Plan is disposed of, the
      participant must make adequate provision for the Company's federal, state,
      or
      other tax withholding obligations, if any, which arise upon the exercise of
      the
      option or the disposition of the Common Stock.  At any time, the
      Company may, but shall not be obligated to, withhold from the participant's
      compensation the amount necessary for the Company to meet applicable withholding
      obligations, including any withholding required to make available to the Company
      any tax deductions or benefits attributable to sale or early disposition of
      Common Stock by the Employee.

     

    7.           Grant
      of Option.  On the Enrollment Date of each Offering Period, each
      eligible Employee participating in such Offering Period shall be granted an
      option to purchase on each Exercise Date during such Offering Period (at the
      applicable Purchase Price) up to a number of shares of the Company's Common
      Stock determined by dividing such Employees payroll deductions accumulated
      prior
      to such Exercise Date and retained in the Participant's account as of the
      Exercise Date by the applicable Purchase Price; provided that in no event shall
      an Employee be permitted to purchase during each Purchase Period shares with
      a
      Fair Market Value greater than $5000 (subject to any adjustment pursuant to
      Section 19), and provided further that such purchase shall be subject to the
      limitations set forth in Sections 3(b), 8(a) and 8(b)
      hereof.  The Board may, for future Offering Periods, increase or
      decrease, in its absolute discretion, the maximum number of shares of the
      Company's Common Stock an Employee may purchase during each Purchase Period
      of
      such Offering Period.  Exercise of the option shall occur as provided
      in Section 8 hereof, unless the participant has withdrawn pursuant to
      Section 10 hereof.  The option shall expire on the last day of
      the Offering Period.

     

    8.           Exercise
      of Option.

     

    (a)           Unless
      a participant withdraws from the Plan as provided in Section 10 hereof, his
      or her option for the purchase of shares shall be exercised automatically on
      the
      Exercise Date, and the maximum number of full shares subject to option shall
      be
      purchased for such participant at the applicable Purchase Price with the
      accumulated payroll deductions in his or her account.  No fractional
      shares shall be purchased; any payroll deductions accumulated in a participant's
      account which are not sufficient to purchase a full share shall be retained
      in
      the participant's account for the subsequent Purchase Period or Offering Period,
      subject to earlier withdrawal by the participant as provided in Section 10
      hereof.  Any other monies leftover in a participant's account after
      the Exercise Date shall be returned to the participant.  During a
      participant's lifetime, a participant's option to purchase shares hereunder
      is
      exercisable only by him or her.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)           If
      the Board determines that, on a given Exercise Date, the number of shares with
      respect to which options are to be exercised may exceed (i) the number of
      shares of Common Stock that were available for sale under the Plan on the
      Enrollment Date of the applicable Offering Period, or (ii) the number of
      shares available for sale under the Plan on such Exercise Date, the Board may
      in
      its sole discretion (x) provide that the Company shall make a pro rata
      allocation of the shares of Common Stock available for purchase on such
      Enrollment Date or Exercise Date, as applicable, in as uniform a manner as
      shall
      be practicable and as it shall determine in its sole discretion to be equitable
      among all participants exercising options to purchase Common Stock on such
      Exercise Date, and continue all Offering Periods then in effect, or
      (y) provide that the Company shall make a pro rata allocation of the shares
      available for purchase on such Enrollment Date or Exercise Date, as applicable,
      in as uniform a manner as shall be practicable and as it shall determine in
      its
      sole discretion to be equitable among all participants exercising options to
      purchase Common Stock on such Exercise Date, and terminate any or all Offering
      Periods then in effect pursuant to Section 20 hereof.  The
      Company may make pro rata allocation of the shares available on the Enrollment
      Date of any applicable Offering Period pursuant to the preceding sentence,
      notwithstanding any authorization of additional shares for issuance under the
      Plan by the Company's shareholders subsequent to such Enrollment
      Date.

     

    9.           Confirmation.  As
      promptly as practicable after each Exercise Date on which a purchase of shares
      occurs, the Company shall adjust its records to reflect the purchase of shares
      purchased upon exercise of his or her option and forward confirmation of such
      purchase to each participant.

     

    10.           Withdrawal.

     

    (a)           A
      participant may withdraw all but not less than all the payroll deductions
      credited to his or her account and not yet used to exercise his or her option
      under the Plan at any time by giving written notice to the Company in the form
      of Exhibit B to this Plan.  All of the participant's payroll
      deductions credited to his or her account shall be paid to such participant
      promptly after receipt of notice of withdrawal and such participant's option
      for
      the Offering Period shall be automatically terminated, and no further payroll
      deductions for the purchase of shares shall be made for such Offering
      Period.  If a participant withdraws from an Offering Period, payroll
      deductions shall not resume at the beginning of the succeeding Offering Period
      unless the participant delivers to the Company a new subscription
      agreement.

     

    (b)           A
      participant's withdrawal from an Offering Period shall not have any effect
      upon
      his or her eligibility to participate in any similar plan which may hereafter
      be
      adopted by the Company or in succeeding Offering Periods which commence after
      the termination of the Offering Period from which the participant
      withdraws.

     

    11.           Termination
      of Employment.  Upon a participant's ceasing to be an Employee,
      for any reason, he or she shall be deemed to have elected to withdraw from
      the
      Plan and the payroll deductions credited to such participant's account during
      the Offering Period but not yet used to exercise the option shall be returned
      to
      such participant or, in the case of his or her death, to the person or persons
      entitled thereto under Section 15 hereof, and such participant's option
      shall be automatically terminated.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    12.           Interest.  No
      interest shall accrue on the payroll deductions of a participant in the
      Plan.

     

    13.           Stock.

     

    (a)           Subject
      to adjustment upon changes in capitalization of the Company as provided in
      Section 19 hereof, the maximum number of shares of the Company's Common
      Stock which shall be made available for sale under the Plan shall be 200,000
      shares.

     

    (b)           The
      participant shall have no interest or voting right in shares covered by his
      option until such option has been exercised.

     

    (c)           Shares
      to be delivered to a participant under the Plan shall be registered in the
      name
      of the participant or in the name of the participant and his or her
      spouse.

     

    14.           Administration.  The
      Plan shall be administered by the  Compensation Committee of the
      Board.  The Committee shall have full and exclusive discretionary
      authority to construe, interpret and apply the terms of the Plan, to determine
      eligibility and to adjudicate all disputed claim filed under the
      Plan.  Every finding, decision and determination made by the Committee
      shall to the full extent permitted by law, be final and binding upon all
      parties.  In the event for any reason there is no Compensation
      Committee the Plan shall be administered by the Board or such other committee
      of
      the Board as the Board may select.

     

    15.           Designation
      of Beneficiary.

     

    (a)           A
      participant may file a written designation of a beneficiary who is to receive
      any shares and cash, if any, from the participant’s account under the Plan in
      the event of such participant's death subsequent to an Exercise Date on which
      the option is exercised but prior to delivery to such participant of such
      cash.  In addition, a participant may file a written designation of a
      beneficiary who is to receive any cash from the participant's account under
      the
      Plan in the event of such participant's death prior to exercise of the
      option.  If a participant is married and the designated beneficiary is
      not the spouse, spousal consent shall be required for such designation to be
      effective.

     

    (b)           Such
      designation of beneficiary may be changed by the participant at any time by
      written notice.  In the event of the death of a participant and in the
      absence of a beneficiary validly designated under the Plan who is living at
      the
      time of such participant's death, the Company shall deliver such shares and/or
      cash to the executor or administrator of the estate of the participant, or
      if no
      such executor or administrator has been appointed (to the knowledge of the
      Company), the Company, in its discretion, may deliver such shares and/or cash
      to
      the spouse or to any one or more dependents or relatives of the participant
      or
      if no spouse, dependent or relative is known to the Company, then to such other
      person as the Company may designate.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    16.           Transferability.  Neither
      payroll deductions credited to a participant's account nor any rights with
      regard to the exercise of an option or to receive shares under the Plan may
      be
      assigned, transferred, pledged or otherwise disposed of in any way (other than
      by will, the laws of descent and distribution or as provided in Section 15
      hereof) by the participant.  Any such attempt at assignment, transfer,
      pledge or other disposition shall be without effect except that the Company
      may
      treat such act as an election to withdraw funds from an Offering Period in
      accordance with Section 10 hereof.

     

    17.           Use
      of Funds.  All payroll deductions received or held by the Company
      under the Plan may be used by the Company for any corporate purpose, and the
      Company shall not be obligated to segregate such payroll
      deductions.

     

    18.           Reports.  Individual
      accounts shall be maintained for each participant in the
      Plan.  Statements of account shall be given to participating Employees
      at least annually, which statements shall set forth the amounts of payroll
      deductions, the Purchase Price, the number of shares purchased and the remaining
      cash balance, if any.

     

    19.           Adjustments
      Upon Changes in Capitalization, Dissolution, Liquidation, Merger of Asset
      Sale.

     

    (a)           Changes
      in Capitalization.  Subject to any required action by the
      shareholders of the Company, the Reserves, the maximum number of shares each
      participant may purchase each Purchase Period pursuant to Section 7, as well
      as
      the price per share and the number of shares of Common Stock covered by each
      option under the Plan which has not yet been exercised shall be proportionately
      adjusted for any increase or decrease in the number of issued shares of Common
      Stock resulting from a stock split, reverse stock split, stock dividend,
      combination or reclassification of the Common Stock, or any other increase
      or
      decrease in the number of shares of Common Stock effected without receipt of
      consideration by the Company, provided, however, that conversion of any
      convertible securities of the Company shall not be deemed to have been "effected
      without receipt of consideration." Such adjustment shall be made by the Board,
      whose determination in that respect shall be final, binding and
      conclusive.  Except as expressly provided herein, no issuance by the
      Company of shares of stock of any class, or securities convertible into shares
      of stock of any class, shall affect, and no adjustment by reason thereof shall
      be made with respect to, the number or price of shares of Common Stock subject
      to an option.

     

    (b)           Dissolution
      or Liquidation.  In the event of the proposed dissolution or
      liquidation of the Company, the Offering Period then in progress shall be
      shortened by setting a new Exercise Date (the "New Exercise Date"), and shall
      terminate immediately prior to the consummation of such proposed dissolution
      or
      liquidation, unless provided otherwise by the Board.  The New Exercise
      Date shall be before the date of the Company's proposed dissolution or
      liquidation.  The Board shall notify each participant in writing, at
      least ten (10) business days prior to the New Exercise Date, that the Exercise
      Date for the participant's option has been changed to the New Exercise Date
      and
      that the participant's option shall be exercised automatically on the New
      Exercise Date, unless prior to such date the participant has withdrawn from
      the
      Offering Period as provided in Section 10 hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)           Merger
      or Asset Sale.  In the event of a proposed sale of all or
      substantially all of the assets of the Company, or the merger of the Company
      with or into another corporation, each outstanding option shall be assumed
      or an
      equivalent option substituted by the successor corporation or a Parent or
      Subsidiary of the successor corporation, if possible.  In the event
      that the successor corporation refuses to assume or substitute for the option,
      any Purchase Periods then in progress shall be shortened by setting a new
      Exercise Date (the "New Exercise Date") and any Offering Periods then in
      progress shall end on the New Exercise Date.  The New Exercise Date
      shall be before the date of the Company's proposed sale or
      merger.  The Board shall notify each participant in writing, at least
      ten (10) business days prior to the New Exercise Date, that the Exercise Date
      for the participant's option has been changed to the New Exercise Date and
      that
      the participant's option shall be exercised automatically on the New Exercise
      Date, unless prior to such date the participant has withdrawn from the Offering
      Period as provided in Section 10 hereof.

     

    20.           Amendment
      or Termination.

     

    (a)           The
      Board of Directors of the Company may at any time and for any reason terminate
      or amend the Plan.  Except as provided in Section 19 hereof, no
      such termination can affect options previously granted, provided that an
      Offering Period may be terminated by the Board of Directors on any Exercise
      Date
      if the Board determines that the termination of the Offering Period or the
      Plan
      is in the best interests of the Company and its shareholders.  Except
      as provided in Section 19 and this Section 20 hereof, no amendment may
      make any change in any option theretofore granted which adversely affects the
      rights of any participant.  To the extent necessary to comply with
      Section 423 of the Code (or any successor rule or provision or any other
      applicable law, regulation or stock exchange rule), the Company shall obtain
      shareholder approval in such a manner and to such a degree as
      required.

     

    (b)           Without
      shareholder consent and without regard to whether any participant rights may
      be
      considered to have been "adversely affected," the Board (or its committee)
      shall
      be entitled to change the Offering Periods, limit the frequency and/or number
      of
      changes in the amount withheld during an Offering Period, permit payroll
      withholding in excess of the amount designated by a participant in order to
      adjust for delays or mistakes in the Company's processing of properly completed
      withholding elections, establish reasonable waiting and adjustment periods
      and/or accounting and crediting procedures to ensure that amounts applied toward
      the purchase of Common Stock for each participant properly correspond with
      amounts withheld from the participant's Compensation, and establish such other
      limitations or procedures as the Board (or its committee) determines in its
      sole
      discretion advisable which are consistent with the Plan.

     

    (c)           In
      the event the Board determines that the ongoing operation of the Plan may result
      in unfavorable financial accounting consequences, the Board may, in its
      discretion and, to the extent necessary or desirable, modify or amend the Plan
      to reduce or eliminate such accounting consequence including, but not limited
      to:

     

    (1)           shortening
      any Offering Period so that Offering Period ends on a new Exercise Date,
      including an Offering Period underway at the time of the Board action;
      and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (2)           allocating
      shares.

     

    Such
      modifications or amendments shall not require stockholder approval or the
      consent of any Plan participants.

     

    21.           Notices.  All
      notices or other communications by a participant to the Company under or in
      connection with the Plan shall be deemed to have been duly given when received
      in the form specified by the Company at the location, or by the person,
      designated by the Company for the receipt thereof.

     

    22.           Conditions
      Upon Issuance of Shares.  Shares shall not be issued with respect
      to an option unless the exercise of such option and the issuance and delivery
      of
      such shares pursuant thereto shall comply with all applicable provisions of
      law,
      domestic or foreign, including, without limitation, the Rules and Regulations
      of
      the Federal Deposit Insurance Corporation, The California Department of
      Financial Institutions, the Securities Act of 1933, as amended and the
      Securities Exchange Act of 1934, as amended, if applicable, and the requirements
      of any stock exchange upon which the shares may then be listed.

     

    As
      a
      condition to the exercise of an option, the Company may require the person
      exercising such option to represent and warrant at the time of any such exercise
      that the shares are being purchased only for investment and without any present
      intention to sell or distribute such shares if, in the opinion of counsel for
      the Company, such a representation is required by any of the aforementioned
      applicable provisions of law.

     

    23.           Term
      of Plan.  The Plan shall become effective upon the Effective Date
      and shall continue in effect for a term of ten years unless sooner terminated
      under Section 20 hereof or because the maximum number of shares made
      available under Section 13(a) of the Plan have been issued.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    BANK
      OF
      MARIN BANCORP

     

    2007
      EMPLOYEE STOCK PURCHASE PLAN

     

    SUBSCRIPTION
      AGREEMENT

     

    Original
      Application Enrollment Date:

     

    Change
      in
      Payroll Deduction Rate

     

    Change
      of
      Beneficiary(ies)

     

    1.           I,
      ___________________________________, hereby elect to participate in the Bank
      of
      Marin Bancorp 2007 Employee Stock Purchase Plan (the "Plan") for the Offering
      Period, to _________________________, and subscribe to purchase shares of the
      Company's Common Stock in accordance with this Subscription Agreement and the
      Plan.

     

    2.           I
      hereby authorize payroll deductions from each paycheck in the amount of _____%
      of my Compensation on each payday during the Offering Period in accordance
      with
      the Plan.  I understand that this amount must not be less than 1% and
      not more than 15% of my Compensation during the Offering
      Period.  (Please note that no fractional percentages are
      permitted.)

     

    3.           I
      understand that said payroll deductions shall be accumulated for the purchase
      of
      shares of Common Stock at the applicable Purchase Price determined in accordance
      with the Plan.  I understand that if I do not withdraw from an
      Offering Period, any accumulated payroll deductions will be used to
      automatically exercise my option.

     

    4.           I
      understand that I may discontinue at any time prior to the Purchase Date my
      participation in the Plan as provided in Section 10 of the
      Plan.  I also understand that I can increase or decrease the rate of
      my payroll deductions on one occasion only with respect to any increase and
      one
      occasion only with respect to any decrease during any Purchase Period by
      completing and filing a new Subscription Agreement with such increase or
      decrease taking effect as of the beginning of the calendar month following
      the
      date of filing of the new Subscription Agreement, if filed at least ten (10)
      business days prior to the beginning of such month.  Further, I may
      change the rate of my payroll deductions for future Offering Periods by filing
      a
      new Subscription Agreement, and any such change will be effective as of the
      beginning of the next Offering Period.  In addition, I acknowledge
      that, unless I discontinue my participation in the Plan as provided in Section
      10 of the Plan, my election will continue to be effective for each successive
      Offering Period.

     

    5.           I
      have received a copy of the complete "Bank of Marin Bancorp 2007 Employee Stock
      Purchase Plan" and a copy of the prospectus related to the Plan. I understand
      that my participation in the Plan is in all respects subject to the terms of
      the
      Plan.

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    6.           Shares
      purchased for me under the Plan should be reflected as owned in the name(s)
      of
      (Employee or Employee and Spouse
      only):  _______________________________.

     

    7.           I
      understand that if I dispose of any shares received by me pursuant to the Plan
      within two years after the Enrollment Date (the first day of the Offering Period
      during which I purchased such shares) or one year after the Exercise Date,
      I
      will be treated for federal income tax purposes as having received ordinary
      income at the time of such disposition in an amount equal to the excess of
      the
      fair market value of the shares at the time such shares were purchased by me
      over the price which I paid for the shares.  I agree to notify the
      Company in writing within 30 days after the date of any disposition of my
      shares and I will make adequate provision for Federal, state or other tax
      withholding obligations, if any, which arise upon the disposition of the Common
      Stock.  The Company may, but will not be obligated to, withhold from
      my compensation the amount necessary to meet any applicable withholding
      obligation including any withholding necessary to make available to the Company
      any tax deductions or benefits attributable to sale or early disposition of
      Common Stock by me.  If I dispose of such shares at any time after the
      expiration of the 2-year and 1-year holding periods, I understand that I will
      be
      treated for federal income tax purposes as having received income only at the
      time of such disposition, and that such income will be taxed as ordinary income
      only to the extent of an amount equal to the lesser of (1) the excess of
      the fair market value of the shares at the time of such disposition over the
      purchase price which I paid for the shares, or (2) 15% of the fair market
      value of the shares on the first day of the Offering Period.  The
      remainder of the gain, if any, recognized on such disposition will be taxed
      as
      capital gain.

     

    8.           I
      hereby agree to be bound by the terms of the Plan.  The effectiveness
      of this Subscription Agreement is dependent upon my eligibility to participate
      in the Plan.

     

    9.           In
      the event of my death, I hereby designate the following as my beneficiary(ies)
      to receive all payments and shares due me under the Plan:

     

    
      	
              NAME:  (Please
                print)

            	 	 
	 	 	 
	
              (First)

            	
              (Middle)

            	
              (Last)

            
	 	 	 
	
              Relationship

            	 	 
	 	 	 
	
              (Address)

            	 	 

    

    

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    I
      UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT
      SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.

     

    Dated:

     

    Signature
      of Employee:

     

    Spouse's
      Signature (If beneficiary other than spouse):

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    BANK
      OF
      MARIN BANCORP

     

    2007
      EMPLOYEE STOCK PURCHASE PLAN

     

    NOTICE
      OF
      WITHDRAWAL

     

    I,
      ______________________________, hereby elect to withdraw my participation in
      the
      Bank of Marin Bancorp 2007 Employee Stock Purchase Plan for the Offering Period
      that began on _______________, 20___.  This withdrawal covers all
      payroll deductions credited to my account and is effective on the date
      designated below.

     

    I
      understand that all payroll deductions credited to my account will be paid
      to me
      as promptly as practicable and that my option for the current Offering Period
      will automatically terminate.  I further understand that no further
      payroll deductions will be made for the purchase of shares in the current
      Offering Period and I shall be eligible to participate in succeeding Offering
      Periods only by delivering to the Company a new Subscription
      Agreement.

     

    
      	
              Name
                and Address of Participant:

            	 
	 	 
	
              Signature:

            	 
	 	 
	
              Date:

            	 

    

     

     

    A-4Exhibit
      10(x)

    CLASS
      D AMENDMENT

    AMENDMENT
      NO. 1 TO AMENDED
      AND RESTATED OPERATING AGREEMENT OF ATLAS ENERGY RESOURCES, LLC

    THIS
      AMENDMENT NO. 1 TO AMENDED AND
      RESTATED OPERATING AGREEMENT OF ATLAS ENERGY RESOURCES, LLC (this
“Amendment”), dated as of June 29, 2007, is entered into and
      effectuated by the Board of Directors (the “Board”) of Atlas Energy
      Resources, LLC, a Delaware limited liability company (the “Company”),
      pursuant to authority granted to it in Sections 5.5 and 11.1 of the Amended
      and
      Restated Operating Agreement of the Company, dated as of December 18, 2006
      (the “Limited Liability Company Agreement”). Capitalized terms used
      but not defined herein are used as defined in the Limited Liability Company
      Agreement. 

    WHEREAS,
      Section 5.5(a) of the
      Limited Liability Company Agreement provides that the Company may issue
      additional Company Securities for any Company purpose at any time and from
      time
      to time for such consideration and on such terms and conditions as the Board
      shall determine, all without the approval of any Members (subject to the
      provisions of Section 5.6 of the Limited Liability Company Agreement);

    WHEREAS,
      Section 5.5(b) of the
      Limited Liability Company Agreement provides that the Company Securities
      authorized to be issued by the Company pursuant to Section 5.5(a) of the
      Limited Liability Company Agreement may be issued in one or more classes, or
      one
      or more series of any such classes, with such designations, preferences, rights,
      powers and duties (which may be senior to existing classes and series of Company
      Securities) as shall be fixed by the Board; 

    WHEREAS,
      Section 11.1(c)(vii)
      of the Limited Liability Company Agreement provides that the Board, without
      the
      approval of any Member (subject to the provisions of Section 5.6 of the
      Limited Liability Company Agreement), may amend any provision of the Limited
      Liability Company Agreement that the Board determines to be necessary or
      appropriate in connection with the authorization of issuance of any class or
      series of Company Securities pursuant to Section 5.5 of the Limited
      Liability Company Agreement, and the Board has determined that the amendments
      contemplated hereby are necessary or appropriate in connection therewith;

    WHEREAS,
      the Board has determined
      that the issuance of the Class D Units provided for in this Amendment is
      permitted by Section 5.6 of the Limited Liability Company Agreement;

    WHEREAS,
      Section 11.1(c)(iv) of
      the Limited Liability Company Agreement provides that the Board, without the
      approval of any Member, may amend any provision of the Limited Liability Company
      Agreement to reflect a change that the Board determines does not adversely
      affect the Members (including any particular class of Interests as compared
      to
      other classes of Interests) in any material respect, and the Board has
      determined that such amendments contemplated hereby do not adversely affect
      the
      Members in any material respect; and 

    

    
    

    WHEREAS,
      the Board deems it in the
      best interest of the Company to effect this Amendment to provide for
      (i) the issuance of the Class D Units, (ii) the conversion of the
      Class D Units into Common Units in accordance with the terms described herein
      and (iii) such other matters as are provided herein. 

    NOW,
      THEREFORE, it is hereby agreed
      as follows: 

     

    
      	A.	Amendment. The
              Limited Liability Company Agreement is
              hereby amended as follows: 

    

    1.
      Section 1.1 of the Limited
      Liability Company Agreement is hereby amended to add or amend and restate the
      following definitions in the appropriate alphabetical order: 

    “Capital
      Account True-Up
      Election” has the meaning assigned to such term in
      Section 6.1(d)(xii)(C). 

    “Class
      D Distribution Increase
      Date” has the meaning assigned to such term in Section 5.11(h).

    “Class
      D Member Interests”
means the Member Interests represented by the Class D Units. 

    “Class
      D Unit Arrearage”
means, with respect to any Class D Unit, whenever issued, as to any Quarter,
      the
      amount, if any, by which (a) the Initial Quarterly Distribution in respect
      of such Quarter (or, for the period from the Class D Distribution Increase
      Date
      through the Conversion Approval, 115% of the Initial Quarterly Distribution)
      exceeds (b) the sum of all Available Cash distributed with respect to a
      Class D Unit in respect of such Quarter pursuant to Sections 6.4(a)(iii)(x)
      and
      6.4(b)(iii)(x). 

    “Class
      D Unit” means a Unit
      representing a fractional part of the Member Interests of all Members and,
      to
      the extent they are treated as Members hereunder, Assignees, and having the
      rights and obligations specified with respect to Class D Units in this
      Agreement. A “Class D Unit” shall not constitute a Common Unit until such time
      as such Class D Unit is converted into a Common Unit pursuant to the terms
      hereof. 

    “Common
      Unit Arrearage” means, with
      respect to any Common Unit, whenever issued, as to any Quarter during which
      Class D Units are Outstanding, the excess, if any, of (a) the Initial
      Quarterly Distribution with respect to a Common Unit in respect of such Quarter
      over (b) the sum of all Available Cash distributed with respect to a Common
      Unit in respect of such Quarter pursuant to Sections 6.4(a)(i) and 6.4(b)(i).
      

    “Conversion
      Approval” has the
      meaning assigned to such term in Section 5.11(d). 

     

    2

    

    
    

    “Cumulative
      Class D Unit
      Arrearage” means, with respect to any Class D Unit, whenever issued, as of
      the end of any Quarter, the excess, if any, by which (a) the sum resulting
      from adding together the Class D Unit Arrearages for each of the Quarters during
      which any Class D Unit has been Outstanding exceeds (b) the sum of any
      distributions theretofore made to a Class D Unit pursuant to Sections
      6.4(a)(iii)(y), 6.4(b)(iii)(y) and 6.6(d) (including any distributions to be
      made in respect of the last of such Quarters). 

    “Cumulative
      Common Unit
      Arrearage” means, with respect to any Common Unit, whenever issued, and as
      of the end of any Quarter, the excess, if any, of (a) the sum resulting
      from adding together the Common Unit Arrearage as to an Initial Common Unit
      for
      each of the Quarters during which Class D Units are Outstanding ending on or
      before the last day of such Quarter over (b) the sum of any distributions
      theretofore made pursuant to Sections 6.4(a)(ii), 6.4(b)(ii) and 6.6(b).

    “Issue
      Price” means the price
      at which a Unit is purchased from the Company, after taking into account any
      sales commission or underwriting discount charged to the Company and after
      taking into account any other form of discount with respect to the price at
      which a Unit is purchased from the Company. In the case of the Class D Units,
      the Issue Price shall be deemed to be $24.78 per Unit and in the case of the
      Privately Placed Common Units, $25.50 per Unit. 

    “Percentage
      Interest” means,
      as of any date of determination (a) as to any Unitholder holding
      Class A Units, the product obtained by multiplying (i) 2% by
      (ii) the quotient obtained by dividing (A) the number of Class A
      Units held by such Unitholder by (B) the total number of Outstanding
      Class A Units; (b) as to any Unitholder holding Common Units or Class
      D Units, the product obtained by multiplying (i) 98% by (ii) the
      quotient obtained by dividing (A) the number of Common Units and/or Class D
      Units held by such Unitholder by (B) the total number of all Outstanding
      Common Units and Class D Units, and (c) as to the holders of other Company
      Securities issued by the Company in accordance with Section 5.5, the
      percentage established as a part of such issuance. 

    “Per
      Unit Capital Amount”
means, as of any date of determination, the Capital Account, stated on
      a per
      Unit basis, as the case may be, underlying any Common Unit (other than a
      Privately Placed Common Unit), Class A Unit, Class D Unit or Privately
      Placed Common Unit, as the case may be, held by a Person. 

    “Private
      Placement Value”
means with respect to the Class D Units and the Privately Placed Common
      Units,
      $34.19 per Unit. 

     

    3

    

    
    

    “Privately
      Placed Common
      Units” means the Common Units issued pursuant to the Unit Purchase
      Agreement. 

    “Unit”
means
      a Company
      Security that is designated as a “Unit” and shall include Class A Units,
      Class D Units and Common Units, but shall not include the Management Incentive
      Interests. 

    “Unit
      Purchase Agreement”
means the Class D Unit and Common Unit Purchase Agreement dated as of
      May 18, 2007 between the Company and the purchasers named therein.

    2.
      Section 1.1 of the Limited
      Liability Company Agreement is hereby further amended to add a new sentence
      at
      the end of the definition of “Common Unit” as follows: 

    The
      term “Common Unit” does not
      include a Class D Unit prior to its conversion into a Common Unit pursuant
      to
      this Agreement. 

    3.
      Article IV of the Limited
      Liability Company Agreement is hereby amended to add a new Section 4.6(e)
      as follows: 

    (e)
      The transfer of (1) a Class
      D Unit that has been converted into a Common Unit pursuant to Section 5.11
      or (2) a Privately Placed Common Unit shall be subject to the restrictions
      imposed by Section 6.9. 

    4.
      Section 5.4(a) of the
      Limited Liability Company Agreement is hereby amended to add the following
      at
      the end of such section: 

    The
      initial Capital Account balance
      in respect of each Class D Unit shall be the Private Placement Value for such
      Class D Unit, and the initial Capital Account balance of each holder of Class
      D
      Units in respect of all Class D Units held shall be the product of such initial
      balance for a Class D Unit multiplied by the number of Class D Units held by
      such holder. The initial Capital Account balance in respect of each
      Privately Placed Common Unit shall be the Private Placement Value for such
      Privately Placed Common Unit, and the initial Capital Account balance of each
      holder of Privately Placed Common Units in respect of all Privately Placed
      Common Units held shall be the product of such initial balance for a Privately
      Placed Common Unit multiplied by the number of Privately Placed Common Units
      held by such holder. Immediately following the creation of a Capital
      Account balance in respect of each Class D Unit, each holder acquiring a Class
      D
      Unit at original issuance shall be deemed to have received a cash distribution
      in respect of such Class D Units in an amount equal to the product of
      (x) the total number of Class D Units so acquired by such holder multiplied
      by (y) the difference between the Private Placement Value and the Issue
      Price of a Class D Unit. Immediately following the creation of a Capital
      Account balance in respect of each Privately Placed Common Unit, each Unitholder
      acquiring a Privately Placed Common Unit at original issuance shall be deemed
      to
      have received a cash distribution in respect of such Privately Placed Common
      Units in an amount equal to the product of (x) the total number of

     

    4

    

    
    

    Privately
      Placed Common Units so
      acquired by such Unitholder multiplied by (y) the difference between the
      Private Placement Value and the Issue Price of a Privately Placed Common
      Unit. The purpose of the four preceding sentences is to provide the initial
      purchasers of Class D Units and Privately Placed Common Units with a net Capital
      Account in the Class D Units and Privately Placed Common Units on the date
      of
      purchase equal to the Issue Price paid by those purchasers for the Class D
      Units
      and Privately Placed Common Units. 

    5.
      Section 5.4(c)(i) of the
      Limited Liability Company Agreement is hereby amended to add the following
      at
      the end of such section: 

    Any
      adjustments that are made under
      this paragraph in connection with the issuance of the Class D Units or the
      Privately Placed Common Units shall be based on the Private Placement Value
      of
      the Class D Units and the Privately Placed Common Units. 

    6.
      Article V of the Limited
      Liability Company Agreement is hereby amended to add a new Section 5.11
      creating a new series of Company Securities as follows: 

    Section 5.11
Establishment
      of Class D Units. 

    (a)
General. The
      Board
      hereby designates and creates a series of Company Securities to be designated
      as
“Class D Units” and consisting of a total of 16,702,828 Class D Units, and fixes
      the designations, preferences and relative, participating, optional or other
      special rights, powers and duties of holders of the Class D Units as set forth
      in this Section 5.11. A form of Certificate Evidencing Class D Units is
      attached as Exhibit 4.2. 

    (b)
Rights
      of Class D Units.
During the period commencing upon issuance of the Class D Units and ending
      on the upon Conversion Approval (or that later time specified in this
      Section 5.11(b)), unless amended pursuant to Section 5.11(h) hereof:

    (i)
Allocations.
Except
      as
      otherwise provided in this Agreement, all items of Company income, gain, loss,
      deduction and credit shall be allocated to the Class D Units to the same extent
      as such items would be so allocated if such Class D Units were Common Units
      (other than Privately Placed Common Units) that were then Outstanding.

    (ii)
Distributions.
Except
      as
      otherwise specified in this Agreement, Class D Units shall have the right to
      the
      distributions specified in Article VI of this Agreement. 

    (iii)
Elimination
      of Cumulative
      Class D Unit Arrearages Upon Conversion. If a Cumulative Class D Unit
      Arrearage

     

    5

    

    
    

    exists
      at the time of Conversion
      Approval, Available Cash shall be distributed 98% to the Unitholders holding
      Class D Units, Pro Rata, and 2% to the holders of Class A Units, Pro Rata,
      until there has been distributed in respect of each Class D Unit then
      Outstanding an amount equal to the Cumulative Class D Unit Arrearage as of
      such
      date. This distribution shall not be deemed a distribution on a Common Unit,
      but
      the satisfaction of prior entitlements of the holders of Class D Units as of
      Conversion Approval. For the taxable year in which the distribution is made,
      if
      not previously allocated, each Person receiving such distribution shall be
      allocated items of gross income in an amount equal to such distribution as
      provided in Section 6.1(d)(iii)(C). 

    (c)
      [Reserved] 

    (d)
Vote
      of
      Unitholders. Except as provided in this Section 5.11, the Class D
      Units are not convertible into Common Units. The Board shall, as promptly
      as practicable following the issuance of the Class D Units, but in any event
      not
      later than 135 days after the date hereof, take such actions as
      may be necessary or appropriate to submit to a vote or consent of the holders
      of
      the Units the approval of a change in the terms of the Class D Units to provide
      that each Class D Unit will automatically convert into one Common Unit (subject
      to appropriate adjustment in the event of any split-up, combination or similar
      event affecting the Common Units that occurs prior to the conversion of the
      Class D Units), except that for purposes of this Section 5.11(d) the term
“Unitholders” shall not include the holders of Class D Units (the “Conversion
      Approval”). Effective immediately upon the Conversion Approval by the
      Unitholders, the issuance of additional Common Units to be issued upon such
      automatic conversion shall be approved without any further action by the holders
      thereof. The vote or consent required for such approval will be the
      requisite vote required under this Agreement and under the rules or staff
      interpretations of the National Securities Exchange on which the Common Units
      are listed or admitted to trading for the listing or admission to trading of
      the
      Common Units that would be issued upon any such conversion. Upon receipt of
      such approval and compliance with Section 5.11(f), the terms of the Class D
      Units will be changed, automatically and without further action, so that each
      Class D Unit is converted into one Common Unit and, immediately thereafter,
      none
      of the Class D Units shall be Outstanding. 

    (e)
Change
      in Rules of National
      Securities Exchange. If at any time (i) the rules of the National
      Securities Exchange on which the Common Units are listed or admitted to trading
      or the staff interpretations of such rules are changed or (ii) facts or
      circumstances arise so that no vote or consent of Unitholders (except that
      for
      purposes of this Section 5.11(e) the term “Unitholders” shall not include
      the holders of the Class D Units) is required as a condition to the listing
      or
      admission to trading of the Common Units that would be issued upon any
      conversion of any Class D Units into Common Units as provided in
      Section 5.11(d), the terms of such Class D Units will be changed so that
      each Class D Unit is converted (without further action or any vote of any
      Unitholders other than 

     

    6

    

    
    

    compliance
      with
      Section 5.11(f)) into one Common Unit (subject to appropriate adjustment in
      the event of any split-up, combination or similar event affecting the Common
      Units that occurs prior to the conversion of the Class D Units) and, immediately
      thereafter, none of the Class D Units shall be Outstanding. 

    (f)
Surrender
      of
      Certificates. Upon receipt of the approval of the holders of the Units
      (other than holders of the Class D Units, who do not vote as part of the
      Conversion Approval) to convert the Class D Units into Common Units in
      accordance with Section 5.11(d) or a change in rules of the National
      Securities Exchange or a change in facts and circumstances as described in
      Section 5.11(e), the Board shall give the holders of the Class D Units
      prompt notice of such approval or change and, subject to Section 6.9, each
      holder of Class D Units shall promptly surrender the Class D Unit Certificates
      therefor, duly endorsed, at the office of the Company or of any transfer agent
      for the Class D Units. In the case of any such conversion, the Company
      shall, as soon as practicable thereafter, issue and deliver at such office
      to
      such holder of Class D Units one or more Unit Certificates, registered in the
      name of such holder, for the number of Common Units to which such holder shall
      be entitled as aforesaid. Such conversion shall be deemed to have been made
      as of the date of the event specified in Section 5.11(d) or
      Section 5.11(e), as the case may be, and the Person entitled to receive the
      Common Units issuable upon such conversion shall be treated for all purposes
      as
      the record holder of such Units on said date. 

    (g)
Voting
      Rights. The
      Class D Units are non-voting, except that the Class D Units shall be entitled
      to
      vote as a separate class on any matter that adversely affects the rights or
      preferences of the Class D Units in relation to other classes of Interests
      (including as a result of a merger or consolidation) or as required by
      law. The approval of a majority of the Class D Units shall be required to
      approve any matter for which the holders of the Class D Units are entitled
      to
      vote. 

    (h)
Automatic
      Provisions. If
      the Conversion Approval has not occurred within 135 days after the date hereof,
      then, effective as of the next succeeding day (the “Class D Distribution
      Increase Date”) until the Conversion Approval is obtained, Section 5.11(b)
      will be deemed to be amended in its entirety, automatically and without further
      action, as follows: 

    (b)
Rights
      of Class D Units.
Prior to the Conversion Approval (or the later date specified in this
      Section 5.11(b)): 

    (i)
Allocations.
Except
      as
      otherwise provided in this Agreement, all items of Company income, gain, loss,
      deduction and credit shall be allocated to the Class D Units to the same extent
      as such items would be so allocated if such Class D Units were Common Units
      (other than Privately Placed Common Units) that were then Outstanding.

    (ii)
Distributions.
Except
      as
      otherwise specified in this Agreement, Class D Units shall have the right to
      the
      distributions specified in Article VI of this Agreement. Notwithstanding the
      provisions of Article VI: 

     

    7

    

    
    

    (A)
      Sections 6.4(a)(iii) and
      6.4(b)(iii) shall be applied by substituting “115%” for “100%”. 

    (B)
      Each Class D Unit shall be
      entitled to 115% of the amount distributed per Common Unit pursuant to Sections
      6.4(a)(iv), 6.4(b)(iv), 6.4(b)(v) and 6.4(b)(vi). 

    (iii)
Elimination
      of Cumulative
      Class D Unit Arrearages Upon Conversion. If a Cumulative Class D Unit
      Arrearage exists at the time of Conversion Approval, Available Cash shall be
      distributed 98% to the Unitholders holding Class D Units, Pro Rata, and 2%
      to
      the holders of Class A Units, Pro Rata, until there has been distributed in
      respect of each Class D Unit then Outstanding an amount equal to the Cumulative
      Class D Unit Arrearage as of such date. This distribution shall not be deemed
      a
      distribution on a Common Unit, but the satisfaction of prior entitlements of
      the
      holders of Class D Units as of Conversion Approval. For the taxable year in
      which the distribution is made, if not previously allocated, each Person
      receiving such distribution shall be allocated items of gross income in an
      amount equal to such distribution as provided in Section 6.1(d)(iii)(C).

    7.
      Section 6.1(c)(ii) of the
      Limited Liability Company Agreement is hereby amended and restated as follows:
      

    (ii)
      If a Net Termination Loss is
      recognized (or deemed recognized pursuant to Section 5.4(c)), such Net
      Termination Loss shall be allocated among the Members in the following manner:
      

    (A)
      First, 2% to the holders of
      Class A Units, Pro Rata, and 98% to the holders of Class D Units, Pro Rata,
      until the Capital Account in respect to each Class D Unit then Outstanding
      has
      been reduced to zero; 

    (B)
      Second, 2% to the holders of
      Class A Units, Pro Rata, and 98% to the holders of Common Units, Pro Rata,
      until the Capital Account in respect to each Common Unit then Outstanding has
      been reduced to zero; and 

    (C)
      Third, the balance, if any, to
      all Unitholders in accordance with their respective Percentage Interests.

     

    8

    

    
    

    8.
      Article VI of the Limited
      Liability Company Agreement is hereby amended to add a new
      Section 6.1(d)(iii)(C) as follows: 

    (C)
      After the application of
      Sections 6.1(d)(iii)(A) and (B), if the amount of cash or the Net Agreed Value
      of any property distributed (except cash or property distributed or deemed
      distributed pursuant to Section 5.4(a) of this Agreement with respect to
      Class D Units or Privately Placed Common Units, or Section 10.3 of this
      Agreement) to any Unitholder with respect to its Units for a taxable year is
      greater (on a per Unit basis) than the amount of cash or the Net Agreed Value
      of
      property distributed to the other Unitholders with respect to their Units (on
      a
      per Unit basis), then each Unitholder receiving such greater cash or property
      distribution shall be allocated gross income in an amount equal to the product
      of (a) the amount by which the distribution (on a per Unit basis) to such
      Unitholder exceeds the distribution (on a per Unit basis) to the Unitholders
      receiving the smallest distribution and (b) the number of Units owned by
      the Unitholder receiving the greater distribution. 

    9.
      Article VI of the Limited
      Liability Company Agreement is hereby amended to add a new
      Section 6.1(d)(xii) as follows: 

    (xii)
Allocations
      for Class D
      Units and Privately Placed Common Units. 

    (A)
      With respect to any taxable
      period of the Company ending upon, or after, a Book-Up Event, a Book-Down Event
      or a sale of all or substantially all of the assets of the Company occurring
      after the date of issuance of the Class D Units and the Privately Placed Common
      Units, Company items of income or gain for such taxable period shall be
      allocated 100% (1) to the Members holding Class D Units or converted Class
      D Units that are Outstanding as of the time of such event in proportion to
      the
      number of Class D Units or converted Class D Units held by such Members, until
      each such Member has been allocated the amount that increases the Capital
      Account of such Class D Unit or converted Class D Unit to the Per Unit Capital
      Amount for a then outstanding Common Unit (other than a converted Class D Unit
      or a Privately Placed Common Unit) and (2) to the Members holding Privately
      Placed Common Units that are Outstanding as of the time of such event in
      proportion to the number of Privately Placed Common Units held by such Members,
      until each such Member has been allocated the amount that increases the Capital
      Account of such Privately Placed Common Unit to the Per Unit Capital Amount
      for
      a then outstanding Common Unit (other than a Privately Placed Common Unit or
      a
      Class D Unit). 

    (B)
      With respect to any taxable
      period of the Company ending upon, or after, the transfer of converted Class
      D
      Units or Privately Placed Common Units to a Person that is not an Affiliate
      of
      the holder, Company items of income or gain for such taxable period shall be
      allocated 100% (1) to the Members transferring such converted Class D Units
      in proportion to 

     

    9

    

    
    

    the
      number of converted Class D
      Units transferred by such Members, until each such Member has been allocated
      the
      amount that increases the Capital Account of such converted Class D Unit to
      the
      Per Unit Capital Amount for a then outstanding Common Unit (other than a
      converted Class D Unit or a Privately Placed Common Unit) and (2) to the
      Members transferring such Privately Placed Common Units in proportion to the
      number of Privately Placed Common Units transferred by such Members, until
      each
      such Member has been allocated the amount that increases the Capital Account
      of
      such Privately Placed Common Unit to the Per Unit Capital Amount for a then
      outstanding Common Unit (other than a Privately Placed Common Unit or a
      converted Class D Unit). 

    (C)
      With respect to the first
      taxable period of the Company ending upon, or after, the date of issuance of
      the
      Class D Units or the Privately Placed Common Units, at the election of a Member
      holding Class D Units or Privately Placed Common Units (the “Capital Account
      True-Up Election”), items of income or gain for such taxable period shall be
      allocated 100% to the Members making such Capital Account True-Up Election
      with
      respect to Class D Units or Privately Placed Common Units held by such Members,
      until each such Member has been allocated the amount that increases the Capital
      Account of such Class D Unit or Privately Placed Common Unit to the Per Unit
      Capital Amount for a then outstanding Common Unit (other than a Class D Unit
      or
      a Privately Placed Common Unit). 

    10.
      Section 6.4 of the Limited
      Liability Company Agreement is amended to read as follows: 

    Section 6.4
      Distributions of
      Available Cash from Operating Surplus. 

    (a)
During
      the MII Vesting
      Period. Available Cash with respect to any Quarter ending prior to or on the
      date of the end of the MII Vesting Period that is deemed to be Operating Surplus
      pursuant to the provisions of Section 6.3 or Section 6.6 shall,
      subject to Section 8-607 of the Delaware Act, be distributed, except as
      otherwise required by Section 5.5(b) in respect of other Company Securities
      issued pursuant thereto, as follows: 

    (i)
      First, (A) 2% to the
      holder(s) of the Class A Units, Pro Rata and (B) 98% to the holders of
      the Common Units, Pro Rata until there has been distributed in respect of each
      Common Unit then Outstanding an amount equal to the Initial Quarterly
      Distribution for such Quarter; 

    (ii)
      Second, (A) 2% to the
      holder(s) of the Class A Units, Pro Rata and (B) 98% to the holders of
      the Common Units, Pro Rata until there has been distributed in respect of each
      Common Unit then Outstanding an amount equal to the Cumulative Common Unit
      Arrearage existing with respect to such Quarter; 

     

    10

    

    
    

    (iii)
      Third, (x) (A) 2% to
      the holder(s) of the Class A Units, Pro Rata and (B) 98% to the
      holders of the Class D Units, Pro Rata, until there has been distributed in
      respect of each Class D Unit then Outstanding an amount equal to 100% of the
      Initial Quarterly Distribution for such Quarter; and (y) (A) 2% to the
      holder(s) of the Class A Units, Pro Rata and (B) 98% to the holders of
      the Class D Units, Pro Rata, until there has been distributed in respect of
      each
      Class D Unit then Outstanding an amount equal to the Cumulative Class D Unit
      Arrearage, if any, existing with respect to such Quarter; 

    (iv)
      Fourth, (A) 2% to the
      holder(s) of the Class A Units, Pro Rata and (B) 98% to the holders of
      the Common Units and Class D Units, Pro Rata. 

    (b)
After
      the MII Vesting
      Period. Available Cash with respect to each Quarter after the MII Vesting
      Period that is deemed to be Operating Surplus pursuant to the provisions of
      Section 6.3 or Section 6.6 shall, subject to
      Section 18-607 of the Delaware Act, be distributed, except as otherwise
      required by Section 5.5(b) in respect of additional Company
      Securities issued pursuant thereto, as follows: 

    (i)
      First, (A) 2% to the
      holder(s) of the Class A Units, Pro Rata and (B) 98% to the holders of
      the Common Units, Pro Rata until there has been distributed in respect of each
      Common Unit then Outstanding an amount equal to the Initial Quarterly
      Distribution for such Quarter; 

    (ii)
      Second, (A) 2% to the
      holder(s) of the Class A Units, Pro Rata and (B) 98% to the holders of
      the Common Units, Pro Rata until there has been distributed in respect of each
      Common Unit then Outstanding an amount equal to the Cumulative Common Unit
      Arrearage existing with respect to such Quarter; 

    (iii)
      Third, (x) (A) 2% to
      the holder(s) of the Class A Units, Pro Rata and (B) 98% to the
      holders of the Class D Units, Pro Rata, until there has been distributed in
      respect of each Class D Unit then Outstanding an amount equal to 100% of the
      Initial Quarterly Distribution for such Quarter; and (y) (A) 2% to the
      holder(s) of the Class A Units, Pro Rata and (B) 98% to the holders of
      the Class D Units, Pro Rata, until there has been distributed in respect of
      each
      Class D Unit then Outstanding an amount equal to the Cumulative Class D Unit
      Arrearage, if any, existing with respect to such Quarter; 

     

    11

    

    
    

    (iv)
      Fourth, (A) 2% to the
      holders of Class A Units, Pro Rata, and (B) 98% to the holders of
      Common Units and Class D Units, Pro Rata, until there has been distributed
      in
      respect of each Class A Unit, each Class D Unit and each Common Unit then
      Outstanding an amount equal to the Initial Quarterly Distribution for such
      Quarter plus $0.06 (the “First Target Distribution”); 

    (v)
      Fifth, (A) 2% to the
      holders of the Class A Units, Pro Rata, (B) 83% to the holders of the
      Common Units and Class D Units, Pro Rata, and (C) 15% to the holders of the
      Management Incentive Interests, Pro Rata, until there has been distributed
      in
      respect of each Class A Unit, each Class D Unit and each Common Unit then
      Outstanding an amount equal to the Initial Quarterly Distribution for such
      Quarter plus $0.17 (the “Second Target Distribution); and 

    (vi)
      Thereafter, (A) 2% to the
      holders of the Class A Units, Pro Rata, (B) 73% to the holders of the
      Common Units and Class D Units, Pro Rata, and (C) 25% to the holders of the
      Management Incentive Interests, Pro Rata. 

    11.
      Section 6.6 of the Limited
      Liability Company Agreement is amended to read as follows: 

    Section 6.6
Distributions
      of
      Available Cash from Capital Surplus

    Available
      Cash that is deemed to be
      Capital Surplus pursuant to the provisions of Section 6.3(a) shall,
      subject to Section 18-607 of the Delaware Act, be distributed, unless the
      provisions of Section 6.3 require otherwise, be distributed as
      follows: 

    (a)
      100% to the holders of Common
      Units, Pro Rata, until a hypothetical holder of a Common Unit acquired on the
      Closing Date has received with respect to such Common Unit, during the period
      since the Closing Date through such date, distributions of Available Cash that
      are deemed to be Capital Surplus in an aggregate amount equal to the Initial
      Unit Price; 

    (b)
      100% to the holders of Common
      Units, Pro Rata, until there has been distributed in respect of each Common
      Unit
      then Outstanding an amount equal to the Cumulative Common Unit Arrearage.
      Thereafter, all Available Cash shall be distributed as if it were Operating
      Surplus and shall be distributed in accordance with Section 6.4.

     

    12

    

    
    

    (c)
      100% to the holders of Class D
      Units, Pro Rata, until a hypothetical holder of a Class D Unit acquired on
      the
      Closing Date has received with respect to such Class D Unit, during the period
      since the date Class D Units were originally issued through such date,
      distributions of Available Cash that are deemed to be Capital Surplus in an
      aggregate amount equal to the Initial Unit Price; 

    (d)
      100% to the holders of Class D
      Units, Pro Rata, until there has been distributed in respect of each Class
      D
      Unit then Outstanding an amount equal to the Cumulative Class D Unit Arrearage;
      and 

    (e)
      Thereafter, all Available Cash
      shall be distributed as if it were Operating Surplus and shall be distributed
      in
      accordance with Section 6.4. 

    12.
      Article VI is hereby amended to
      add a new Section 6.9 as follows: 

    Section 6.9
Special
      Provisions Relating to Holders of Converted Class D Units and Privately Placed
      Common Units. A holder of (1) a Privately Placed Common Unit or
      (2) a Class D Unit that has converted into a Common Unit pursuant to
      Section 5.11 shall be required to provide notice to the Board of the number
      of Privately Placed Common Units or converted Class D Units transferred by
      such
      holder no later than the last Business Day of the calendar year during which
      such transfer occurred, unless (x) the transfer is to an Affiliate of the
      holder or (y) by virtue of the application of Section 6.1(d)(xii)(B)
      to a prior transfer of the Common Unit or the application of
      Section 6.1(d)(xii)(A) or Section 6.1(d)(xii)(C), the Board has
      previously determined, based on advice of counsel, that the Privately Placed
      Common Unit or converted Class D Unit should have, as a substantive matter,
      like
      intrinsic economic and federal income tax characteristics of an Initial Common
      Unit; provided, that such holder may cure any failure to provide such notice
      by
      providing such notice within 20 days of the last Business Day of such calendar
      year. The sole and exclusive remedy for any holder’s failure to provide any
      such notice shall be the enforcement of the remedy of specific performance
      against such holder and there will be no monetary damages. In connection
      with the condition imposed by this Section 6.9, the Board shall take
      whatever steps are required to provide economic uniformity to the Privately
      Placed Common Units and converted Class D Units in preparation for a transfer
      thereof, including the application of Section 6.1(d)(xii)(B); provided,
      however, that no such steps 

     

    13

    

    
    

    may
      be taken that would have a
      material adverse effect on the Unitholders holding Common Units represented
      by
      Certificates. 

    B.
Agreement
      in
      Effect. Except as hereby amended, the Limited Liability Company
      Agreement shall remain in full force and effect. 

    C.
Applicable
      Law. This
      Amendment shall be construed in accordance with and governed by the laws of
      the
      State of Delaware, without regard to principles of conflicts of laws.

    D.
Invalidity
      of
      Provisions. If any provision of this Amendment is or becomes invalid,
      illegal or unenforceable in any respect, the validity, legality and
      enforceability of the remaining provisions contained herein shall not be
      affected thereby. 

     

    14

    

    
    

    IN
      WITNESS WHEREOF, this Amendment
      has been executed as of the date first written above. 

     

    
      	
            	
            	
            
	ATLAS
              ENERGY RESOURCES, LLC
	
            	
            
	
              By:

            	 	
              /s/
                Matthew A.
                Jones

            
	Name:	 	Matthew
              A. Jones
	Title:	 	CFO

    

    [Signature
      Page to Form of Class D
      Amendment] 

     

    15

    

    
    

    Exhibit
      4.2

     

    
      	
            	
            	
            	
            	
            
	
            	  	Certificate
              Evidencing Class D Units	  	
            
	Certificate No.         	  	Representing
              Limited Liability Company Interests
              in	  	Class D Units
	
            	  	Atlas
              Energy Resources, LLC	  	
            

    

    In
      accordance with
      Section 4.1 of the Amended and Restated Operating Agreement of Atlas Energy
      Resources, LLC, as amended, supplemented or restated from time to time (the
      “Company Agreement”), Atlas Energy Resources, LLC, a Delaware limited liability
      company (the “Company”), hereby certifies that
                                        
         (the “Holder”) is the
      registered owner of
            
      CLASS D UNITS representing limited liability company interests in the
      Company (the “Class D Units”) transferable on the books of the Company,
      in person or by duly authorized attorney, upon surrender of this Certificate
      properly endorsed. The rights, preferences and limitations of the Class D
      Units are set forth in, and this Certificate and the Class D Units represented
      hereby are issued and shall in all respects be subject to the terms and
      provisions of, the Company Agreement. Copies of the Company Agreement are
      on file at, and will be furnished without charge on delivery of written request
      to the Company at, the principal office of the Company located at 311 Rouser
      Road, Moon Township, PA 15108. Capitalized terms used herein but not
      defined shall have the meanings given them in the Company Agreement.

    The
      Holder, by accepting this
      Certificate, is deemed to have (i) requested admission as, and agreed to
      become, a Member and to have agreed to comply with and be bound by and to have
      executed the Company Agreement, (ii) represented and warranted that the
      Holder has all right, power and authority and, if an individual, the capacity
      necessary to enter into the Company Agreement, (iii) granted the powers of
      attorney provided for in the Company Agreement and (iv) made the waivers
      and given the consents and approvals contained in the Company Agreement.

    This
      Certificate shall not be valid
      for any purpose unless it has been signed by duly authorized officers of the
      Company. 

     

    
      	
            	
            	
            	
            	
            
	
              Dated: _____________,
                2007

            	 	ATLAS
              ENERGY RESOURCES, LLC
	
            	
            	
            
	
            	 	By:	 	
               

            
	
            	 	
            	 	
              Chairman,
                President and
                Chief

              Executive
                Officer

            
	
            	
            	
            
	
            	 	By:	 	
               

            
	
            	 	
            	 	Secretary

    

    “THESE
      SECURITIES HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE SECURITIES MAY
      NOT BE SOLD, OFFERED FOR SALE, PLEDGED (EXCEPT IN CONNECTION WITH A BONA FIDE
      MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THESE
      SECURITIES) OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT
      WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION FROM
      REGISTRATION THEREUNDER AND, IN THE CASE OF A TRANSACTION EXEMPT FROM
      REGISTRATION, UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT OR THE ISSUER
      HAS
      RECEIVED DOCUMENTATION REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION
      DOES
      NOT REQUIRE REGISTRATION UNDER SUCH ACT.” FOR THE AVOIDANCE OF DOUBT, THE
      PURCHASED UNITS AND THE PURCHASED CLASS D UNITS MAY BE PLEDGED IN CONNECTION
      WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED
      BY SUCH PURCHASED UNITS OR PURCHASED CLASS D UNITS AND SUCH PLEDGE SHALL NOT
      BE
      DEEMED TO BE A TRANSFER, SALE OR ASSIGNMENT OF SUCH PURCHASED UNITS OR PURCHASED
      CLASS D UNITS, AND NO BUYER EFFECTING SUCH A PLEDGE SHALL BE REQUIRED TO PROVIDE
      ATLAS ENERGY WITH ANY NOTICE THEREOF OR OTHERWISE MAKE ANY DELIVERY TO ATLAS
      ENERGY PURSUANT TO THIS AGREEMENT OR ANY OTHER BASIC
      DOCUMENT. 

     

    16

    

    
    

    Atlas
      Energy Resources, LLC

    [Reverse
      of Certificate]

    ABBREVIATIONS
      

    The
      following abbreviations, when
      used in the inscription on the face of this Certificate, shall be construed
      as
      follows according to applicable laws or regulations: 

     

    
      	
            	
            	
            	
            	
            	
            	
            	
            	
            	
            	
            	
            	
            
	TEN COM	 	–	 	as tenants in common	  	UNIF GIFT MIN ACT–	  	
               

            	  	Custodian	  	
               

            
	TEN
              ENT	 	–	 	as
              tenants by the entireties	  	
            	  	(Cust)	  	
            	  	(Minor)
	JT
              TEN	 	–	 	as joint tenants with right of
              survivorship and not as tenants in common	  	
              under Uniform Gifts to Minors

              Act

            	  	
               

            	  	
            	  	
            
	
            	 	
            	 	
            	  	
            	  	(State)	  	
            	  	
            
	
            	 	
            	 	
            	  	
            	  	
            	  	
            	  	
            
	Additional
              abbreviations, though not in the above list, may also be
              used.	  	
            	  	
            

    

    ASSIGNMENT
      OF CLASS D UNITS

    In

    Atlas
      Energy Resources, LLC

     

    
      	
            	
            	
            	
            	
            
	FOR
              VALUE
              RECEIVED,	 	
               

            	 	hereby
              assigns, conveys, sells and transfers unto
	
               

               

            
	(Please
              print or typewrite name and address of Assignee)	 	
            

    

     

    
      	
            	
            	
            
	
               

            	 	
               

            
	
            	
            
	
            	 	(Please
              insert Social Security or other identifying number of
              Assignee)

    

     

    
      	
            	
            	
            	
            	
            
	
            
	                                
              Class D Units representing limited liability company interests evidenced
              by this Certificate, subject to the Company Agreement, and does hereby
              irrevocably constitute and appoint
                                                      
                   as its attorney-in-fact with full power of
              substitution to transfer the same on the books of Atlas Energy Resources,
              LLC.
	
            	
            
	Date:                                     
                                                 	 	NOTE:
              The signature to any endorsement hereon must correspond with
              the name as written upon the face of this Certificate in every particular,
              without alteration, enlargement or change.
	
            	
            	
            
	
            	 	
            	 	
               

            
	The
              signature(s) should be guaranteed by an “eligible guarantor
              institution” as defined in Rule 17Ad-15 under the Securities and Exchange
              Act of 1934, as amended	 	(Signature)
	
            	
            
	
            	 	
               

            
	
            	 	
            	 	(Signature)

    

    SIGNATURE(S)
      GUARANTEED:

    No
      assignment or transfer of the
      Class D Units evidenced hereby will be registered on the books of the Company
      unless the Certificate evidencing the Class D Units to be transferred is
      surrendered for registration or transfer. 

     

    17

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