Document:

Exhibit
      10(z)

     

    CREDIT
      AGREEMENT DATED AS OF JUNE 29, 2007 AMONG ATLAS ENERGY RESOURCES, LLC, AS PARENT
      GUARANTOR, ATLAS ENERGY OPERATING COMPANY, LLC, AS BORROWER, JPMORGAN CHASE
      BANK, N.A., AS ADMINISTRATIVE AGENT, WACHOVIA BANK, NATIONAL ASSOCIATION, AS
      SYNDICATION AGENT, AND BANK OF AMERICA, N.A., BNP PARIBAS, ROYAL BANK OF CANADA,
      AND UBS LOAN FINANCE LLC, AS CO-DOCUMENTATION AGENTS, AND THE LENDERS PARTY
      HERETO SOLE LEAD ARRANGER AND SOLE BOOKRUNNER J.P. MORGAN SECURITIES
      INC.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF
      CONTENTS

     

    
      	 	 	 	 	
              Page

            
	 	 	 	 	 
	 	 	
              ARTICLE
                I

            	 	 
	 	 	
              Definitions
                and Accounting Matters

            	 	 
	 	 	 	 	 
	
              Section
                1.01

            	 	
              Terms
                Defined Above

            	 	
              1

            
	
              Section
                1.02

            	 	
              Certain
                Defined Terms

            	 	
              1

            
	
              Section
                1.03

            	 	
              Types
                of Loans and Borrowings

            	 	
              19

            
	
              Section
                1.04

            	 	
              Terms
                Generally; Rules of Construction

            	 	
              19

            
	
              Section
                1.05

            	 	
              Accounting
                Terms and Determinations

            	 	
              20

            
	 	 	 	 	 
	 	 	
              ARTICLE
                II

            	 	 
	 	 	
              The
                Credits

            	 	 
	 	 	 	 	 
	
              Section
                2.01

            	 	
              Commitments

            	 	
              20

            
	
              Section
                2.02

            	 	
              Loans
                and Borrowings.

            	 	
              20

            
	
              Section
                2.03

            	 	
              Requests
                for Borrowings

            	 	
              21

            
	
              Section
                2.04

            	 	
              Interest
                Elections.

            	 	
              22

            
	
              Section
                2.05

            	 	
              Funding
                of Borrowings.

            	 	
              23

            
	
              Section
                2.06

            	 	
              Termination,
                Reduction and Increase of Aggregate Maximum Credit
                Amounts.

            	 	
              23

            
	
              Section
                2.07

            	 	
              Borrowing
                Base.

            	 	
              25

            
	
              Section
                2.08

            	 	
              Letters
                of Credit.

            	 	
              27

            
	 	 	 	 	 
	 	 	
              ARTICLE
                III

            	 	 
	 	 	
              Payments
                of Principal and Interest; Prepayments; Fees

            	 	 
	 	 	 	 	 
	
              Section
                3.01

            	 	
              Repayment
                of Loans

            	 	
              31

            
	
              Section
                3.02

            	 	
              Interest.

            	 	
              31

            
	
              Section
                3.03

            	 	
              Alternate
                Rate of Interest

            	 	
              32

            
	
              Section
                3.04

            	 	
              Prepayments.

            	 	
              32

            
	
              Section
                3.05

            	 	
              Fees.

            	 	
              33

            
	 	 	 	 	 
	 	 	
              ARTICLE
                IV

            	 	 
	 	 	
              Payments;
                Pro Rata Treatment; Sharing of Set-offs.

            	 	 
	 	 	 	 	 
	
              Section
                4.01

            	 	
              Payments
                Generally; Pro Rata Treatment; Sharing of Set-offs.

            	 	
              34

            
	
              Section
                4.02

            	 	
              Presumption
                of Payment by the Borrower

            	 	
              35

            
	
              Section
                4.03

            	 	
              Certain
                Deductions by the Administrative Agent

            	 	
              35

            
	
              Section
                4.04

            	 	
              Disposition
                of Proceeds

            	 	
              35

            
	 	 	 	 	 
	 	 	
              ARTICLE
                V

            	 	 
	 	 	
              Increased
                Costs; Break Funding Payments; Taxes

            	 	 
	 	 	 	 	 
	
              Section
                5.01

            	 	
              Increased
                Costs.

            	 	
              36

            
	
              Section
                5.02

            	 	
              Break
                Funding Payments

            	 	
              37

            
	
              Section
                5.03

            	 	
              Taxes.

            	 	
              37

            
	
              Section
                5.04

            	 	
              Designation
                of Different Lending Office

            	 	
              39

            
	
              Section
                5.05

            	 	
              Replacement
                of Lenders

            	 	
              39

            
	 	 	 	 	 
	 	 	
              ARTICLE
                VI

            	 	 
	 	 	
              Conditions
                Precedent

            	 	 
	 	 	 	 	 
	
              Section
                6.01

            	 	
              Effective
                Date

            	 	
              40

            
	
              Section
                6.02

            	 	
              Each
                Credit Event

            	 	
              43

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              ARTICLE
                VII

            	 	 
	 	 	
              Representations
                and Warranties

            	 	 
	 	 	 	 	 
	
              Section
                7.01

            	 	
              Organization;
                Powers

            	 	
              43

            
	
              Section
                7.02

            	 	
              Authority;
                Enforceability

            	 	
              44

            
	
              Section
                7.03

            	 	
              Approvals;
                No Conflicts

            	 	
              44

            
	
              Section
                7.04

            	 	
              Financial
                Condition; No Material Adverse Change.

            	 	
              44

            
	
              Section
                7.05

            	 	
              Litigation.

            	 	
              45

            
	
              Section
                7.06

            	 	
              Environmental
                Matters

            	 	
              45

            
	
              Section
                7.07

            	 	
              Compliance
                with the Laws and Agreements; No Defaults.

            	 	
              46

            
	
              Section
                7.08

            	 	
              Investment
                Company Act

            	 	
              46

            
	
              Section
                7.09

            	 	
              Use
                of Loans and Letters of Credit

            	 	
              46

            
	
              Section
                7.10

            	 	
              Taxes

            	 	
              47

            
	
              Section
                7.11

            	 	
              ERISA

            	 	
              47

            
	
              Section
                7.12

            	 	
              Disclosure;
                No Material Misstatements

            	 	
              48

            
	
              Section
                7.13

            	 	
              Insurance

            	 	
              48

            
	
              Section
                7.14

            	 	
              Restriction
                on Liens

            	 	
              48

            
	
              Section
                7.15

            	 	
              Subsidiaries.

            	 	
              48

            
	
              Section
                7.16

            	 	
              Location
                of Business and Offices

            	 	
              49

            
	
              Section
                7.17

            	 	
              Properties;
                Titles, Etc.

            	 	
              49

            
	
              Section
                7.18

            	 	
              Maintenance
                of Properties

            	 	
              50

            
	
              Section
                7.19

            	 	
              Gas
                Imbalances, Prepayments

            	 	
              51

            
	
              Section
                7.20

            	 	
              Marketing
                of Production

            	 	
              51

            
	
              Section
                7.21

            	 	
              Swap
                Agreements

            	 	
              51

            
	
              Section
                7.22

            	 	
              Solvency

            	 	
              51

            
	
              Section
                7.23

            	 	
              Acquisition

            	 	
              51

            
	 	 	 	 	 
	 	 	
              ARTICLE
                VIII

            	 	 
	 	 	
              Affirmative
                Covenants

            	 	 
	 	 	 	 	 
	
              Section
                8.01

            	 	
              Financial
                Statements; Other Information

            	 	
              51

            
	
              Section
                8.02

            	 	
              Notices
                of Material Events

            	 	
              54

            
	
              Section
                8.03

            	 	
              Existence;
                Conduct of Business

            	 	
              54

            
	
              Section
                8.04

            	 	
              Payment
                of Obligations

            	 	
              55

            
	
              Section
                8.05

            	 	
              Performance
                of Obligations under Loan Documents

            	 	
              55

            
	
              Section
                8.06

            	 	
              Operation
                and Maintenance of Properties

            	 	
              55

            
	
              Section
                8.07

            	 	
              Insurance

            	 	
              56

            
	
              Section
                8.08

            	 	
              Books
                and Records; Inspection Rights

            	 	
              56

            
	
              Section
                8.09

            	 	
              Compliance
                with Laws

            	 	
              56

            
	
              Section
                8.10

            	 	
              Environmental
                Matters.

            	 	
              56

            
	
              Section
                8.11

            	 	
              Further
                Assurances.

            	 	
              57

            
	
              Section
                8.12

            	 	
              Reserve
                Reports.

            	 	
              57

            
	
              Section
                8.13

            	 	
              Title
                Information.

            	 	
              58

            
	
              Section
                8.14

            	 	
              Additional
                Collateral; Additional Guarantors.

            	 	
              59

            
	
              Section
                8.15

            	 	
              ERISA
                Compliance

            	 	
              60

            
	
              Section
                8.16

            	 	
              Swap
                Agreements

            	 	
              60

            
	
              Section
                8.17

            	 	
              Unrestricted
                Subsidiaries

            	 	
              60

            
	 	 	 	 	 
	 	 	
              ARTICLE
                IX

            	 	 
	 	 	
              Negative
                Covenants

            	 	 
	 	 	 	 	 
	
              Section
                9.01

            	 	
              Financial
                Covenants

            	 	
              61

            
	
              Section
                9.02

            	 	
              Debt

            	 	
              61

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                9.03

            	 	
              Liens

            	 	
              62

            
	
              Section
                9.04

            	 	
              Restricted
                Payments; Redemption of Subordinated Debt.

            	 	
              63

            
	
              Section
                9.05

            	 	
              Investments,
                Loans and Advances

            	 	
              63

            
	
              Section
                9.06

            	 	
              Nature
                of Business; International Operations; Foreign
                Subsidiaries

            	 	
              64

            
	
              Section
                9.07

            	 	
              Proceeds
                of Loans and Letters of Credit

            	 	
              64

            
	
              Section
                9.08

            	 	
              ERISA
                Compliance

            	 	
              65

            
	
              Section
                9.09

            	 	
              Sale
                or Discount of Receivables

            	 	
              66

            
	
              Section
                9.10

            	 	
              Mergers,
                Etc

            	 	
              66

            
	
              Section
                9.11

            	 	
              Sale
                of Properties

            	 	
              66

            
	
              Section
                9.12

            	 	
              Environmental
                Matters

            	 	
              67

            
	
              Section
                9.13

            	 	
              Transactions
                with Affiliates

            	 	
              67

            
	
              Section
                9.14

            	 	
              Subsidiaries

            	 	
              67

            
	
              Section
                9.15

            	 	
              Negative
                Pledge Agreements; Dividend Restrictions

            	 	
              67

            
	
              Section
                9.16

            	 	
              Gas
                Imbalances, Take-or-Pay or Other Prepayments

            	 	
              67

            
	
              Section
                9.17

            	 	
              Swap
                Agreements

            	 	
              68

            
	
              Section
                9.18

            	 	
              Tax
                Status as Partnership; Partnership Agreement

            	 	
              68

            
	
              Section
                9.19

            	 	
              Designation
                and Conversion of Restricted and Unrestricted Subsidiaries; Debt
                of
                Unrestricted Subsidiaries.

            	 	
              68

            
	 	 	 	 	 
	 	 	
              ARTICLE
                X

            	 	 
	 	 	
              Events
                of Default; Remedies

            	 	 
	 	 	 	 	 
	
              Section
                10.01

            	 	
              Events
                of Default

            	 	
              69

            
	
              Section
                10.02

            	 	
              Remedies.

            	 	
              71

            
	 	 	 	 	 
	 	 	
              ARTICLE
                XI

            	 	 
	 	 	
              The
                Agents

            	 	 
	 	 	 	 	 
	
              Section
                11.01

            	 	
              Appointment;
                Powers

            	 	
              71

            
	
              Section
                11.02

            	 	
              Duties
                and Obligations of Administrative Agent

            	 	
              72

            
	
              Section
                11.03

            	 	
              Action
                by Administrative Agent

            	 	
              72

            
	
              Section
                11.04

            	 	
              Reliance
                by Administrative Agent

            	 	
              73

            
	
              Section
                11.05

            	 	
              Subagents

            	 	
              73

            
	
              Section
                11.06

            	 	
              Resignation
                of Agents

            	 	
              73

            
	
              Section
                11.07

            	 	
              Agents
                as Lenders

            	 	
              74

            
	
              Section
                11.08

            	 	
              No
                Reliance

            	 	
              74

            
	
              Section
                11.09

            	 	
              Authority
                of Administrative Agent to Release Collateral and Liens

            	 	
              74

            
	
              Section
                11.10

            	 	
              Administrative
                Agent May File Proofs of Claim.

            	 	
              74

            
	
              Section
                11.11

            	 	
              The
                Arranger, the Syndication Agent and the Documentation
                Agents

            	 	
              75

            
	 	 	 	 	 
	 	 	
              ARTICLE
                XII

            	 	 
	 	 	
              Miscellaneous

            	 	 
	 	 	 	 	 
	
              Section
                12.01

            	 	
              Notices.

            	 	
              75

            
	
              Section
                12.02

            	 	
              Waivers;
                Amendments.

            	 	
              76

            
	
              Section
                12.03

            	 	
              Expenses,
                Indemnity; Damage Waiver.

            	 	
              77

            
	
              Section
                12.04

            	 	
              Successors
                and Assigns.

            	 	
              79

            
	
              Section
                12.05

            	 	
              Survival;
                Revival; Reinstatement.

            	 	
              81

            
	
              Section
                12.06

            	 	
              Counterparts;
                Integration; Effectiveness.

            	 	
              82

            
	
              Section
                12.07

            	 	
              Severability

            	 	
              82

            
	
              Section
                12.08

            	 	
              Right
                of Setoff

            	 	
              82

            
	
              Section
                12.09

            	 	
              GOVERNING
                LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS.

            	 	
              83

            
	
              Section
                12.10

            	 	
              Headings

            	 	
              84

            
	
              Section
                12.11

            	 	
              Confidentiality

            	 	
              84

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                12.12

            	 	
              Interest
                Rate Limitation

            	 	
              84

            
	
              Section
                12.13

            	 	
              No
                Third Party Beneficiaries

            	 	
              85

            
	
              Section
                12.14

            	 	
              Collateral
                Matters; Swap Agreements

            	 	
              85

            
	
              Section
                12.15

            	 	
              Acknowledgements

            	 	
              85

            
	
              Section
                12.16

            	 	
              USA
                Patriot Act Notice

            	 	
              85

            

    

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    Annexes,
      Exhibits and Schedules

     

    
      
        	
                Annex
                  I

              	 	
                List
                  of Maximum Credit Amounts

              
	
                Annex
                  II

              	 	
                Sources
                  and Uses Table

              
	 	 	 
	
                Exhibit
                  A

              	 	
                Form
                  of Note

              
	
                Exhibit
                  B

              	 	
                Form
                  of Borrowing Request

              
	
                Exhibit
                  C

              	 	
                Form
                  of Interest Election Request

              
	
                Exhibit
                  D

              	 	
                Form
                  of Compliance Certificate

              
	
                Exhibit
                  E-1

              	 	
                Form
                  of Legal Opinion of Ledgewood, special counsel to the
                  Parent Guarantor and the Borrower

              
	
                Exhibit
                  E-2

              	 	
                Form
                  of Legal Opinion of Local Counsel

              
	
                Exhibit
                  F-1

              	 	
                Security
                  Instruments

              
	
                Exhibit
                  F-2

              	 	
                Form
                  of Guaranty and Collateral Agreement

              
	
                Exhibit
                  G

              	 	
                Form
                  of Assignment and Assumption

              
	
                Exhibit
                  H-1

              	 	
                Form
                  of Maximum Credit Amount Increase Certificate

              
	
                Exhibit
                  H-2

              	 	
                Form
                  of Additional Lender Certificate

              
	
                Exhibit
                  I

              	 	
                Form
                  of Reserve Report Certificate

              
	 	 	 
	 	 	 
	
                Schedule
                  1.02(a)

              	 	
                Approved
                  Counterparties

              
	
                Schedule
                  1.02(b)

              	 	
                Existing
                  Letters of Credit

              
	
                Schedule
                  7.05

              	 	
                Litigation

              
	
                Schedule
                  7.11

              	 	
                ERISA

              
	
                Schedule
                  7.15

              	 	
                Subsidiaries
                  and Partnerships; Unrestricted Subsidiaries

              
	
                Schedule
                  7.19

              	 	
                Gas
                  Imbalances

              
	
                Schedule
                  7.20

              	 	
                Marketing
                  Contracts

              
	
                Schedule
                  7.21

              	 	
                Swap
                  Agreements

              
	
                Schedule
                  9.02

              	 	
                Existing
                  Debt

              
	
                Schedule
                  9.05

              	 	
                Investments

              

      

    

     

    
      
        
        

      

      
        v

        
          

        

      

       

    

    THIS
      CREDIT AGREEMENT, dated as of June 29, 2007, is among: ATLAS ENERGY RESOURCES,
      LLC, a limited liability company duly formed and existing under the laws of
      the
      State of Delaware (the “Parent
      Guarantor”);
      ATLAS
      ENERGY OPERATING COMPANY, LLC, a limited liability company duly formed and
      existing under the laws of the State of Delaware (the “Borrower”);
      each
      of the Lenders from time to time party hereto; JPMORGAN CHASE BANK, N.A. (in
      its
      individual capacity, “JPMorgan”),
      as
      administrative agent for the Lenders (in such capacity, together with its
      successors in such capacity, the “Administrative
      Agent”);
      WACHOVIA BANK, NATIONAL ASSOCIATION, as syndication agent for the Lenders (in
      such capacity, together with its successors in such capacity, the “Syndication
      Agent”);
      and
BANK
      OF
      AMERICA, N.A., BNP PARIBAS, ROYAL BANK OF CANADA
      and
UBS
      LOAN
      FINANCE LLC,
      as
      co-documentation agents for the Lenders (each, in such capacity, together with
      its successors in such capacity, the “Documentation
      Agent”).

     

    RECITALS

     

    A. The
      Parent Guarantor and the Borrower have requested that the Lenders extend credit
      to, and on behalf of, the Borrower; and the Agents and the Lenders have agreed
      to extend credit to, and on behalf of, the Borrower, subject to the terms and
      conditions of this Agreement.

     

    B. Now,
      therefore, in consideration of the mutual covenants and agreements herein
      contained and of the loans, extensions of credit and commitments hereinafter
      referred to, the parties hereto agree as follows:

     

    ARTICLE
      I

    Definitions
      and Accounting Matters

     

    Section
      1.01 Terms
      Defined Above.
      As used
      in this Agreement, each term defined above has the meaning indicated
      above.

     

    Section
      1.02 Certain
      Defined Terms.
      As used
      in this Agreement, the following terms have the meanings specified
      below:

     

    “ABR”,
      when
      used in reference to any Loan or Borrowing, refers to whether such Loan, or
      the
      Loans comprising such Borrowing, bears interest at a rate determined by
      reference to the Alternate Base Rate.

     

    “Acquisition”
means
      the acquisition of all of the issued and outstanding Equity Interests of the
      Target pursuant to the terms and conditions of the Acquisition
      Documents.

     

    “Acquisition
      Agreement”
means
      the Purchase and Sale Agreement among MCN Energy Enterprises, Inc., as seller,
      DTE Energy Company, as seller parent, ATN Michigan, LLC, as buyer, and the
      Parent Guarantor, as buyer parent dated May 18, 2007, as amended by
      1st
      Amendment to Purchase and Sale Agreement dated June 29, 2007.

     

    “Acquisition
      Documents”
means
      (a) the Acquisition Agreement and (b) all bills of sale, assignments,
      agreements, instruments and documents executed and delivered in connection
      therewith.

     

    “Acquisition
      Properties”
means
      the Oil and Gas Properties of the Target and its Subsidiaries.

     

    “Additional
      Lender”
has
      the
      meaning assigned to such term in Section
      2.06(c)(i).

     

    “Additional
      Lender Certificate”
has
      the
      meaning assigned to such term in Section
      2.06(c)(ii)(E).

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    “Adjusted
      LIBO Rate”
means,
      with respect to any Eurodollar Borrowing for any Interest Period, an interest
      rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal
      to
      (a)
      the LIBO
      Rate for such Interest Period multiplied by (b)
      the
      Statutory Reserve Rate.

     

    “Administrative
      Questionnaire”
means
      an Administrative Questionnaire in a form supplied by the Administrative
      Agent.

     

    “Affiliate”
means,
      with respect to a specified Person, another Person that directly, or indirectly
      through one or more intermediaries, Controls or is Controlled by or is under
      common Control with the Person specified.

     

    “Agents”
means,
      collectively, the Administrative Agent, the Syndication Agent and each
      Documentation Agent; and “Agent” shall mean any of the Administrative Agent, the
      Syndication Agent or a Documentation Agent, as the context
      requires.

     

    “Aggregate
      Maximum Credit Amounts”
at
      any
      time shall equal the sum of the Maximum Credit Amounts, as the same may be
      increased, reduced or terminated pursuant to Section
      2.06.

     

    “Agreement”
means
      this Credit Agreement, as the same may from time to time be amended, modified,
      supplemented or restated.

     

    “Alternate
      Base Rate”
means,
      for any day, a rate per annum equal to the greater of (a) the Prime Rate in
      effect on such day and (b) the Federal Funds Effective Rate in effect on such
      day plus 1⁄2 of 1%. Any change in the Alternate Base Rate due to a change in the
      Prime Rate or the Federal Funds Effective Rate shall be effective from and
      including the effective date of such change in the Prime Rate or the Federal
      Funds Effective Rate, respectively.

     

    “Applicable
      Margin”
means,
      for any day, with respect to any Loan or with respect to the Commitment Fee
      Rate, the applicable rate per annum set forth below based on Borrowing Base
      Utilization Percentage on such day:

     

    
      	
              Borrowing

              Base
                Utilization Percentage

            	 	
              Eurodollar
                

              Loans

            	 	
              ABR
                

              Loans

            	 	
               

              Commitment
                Fee Rate

            	 
	
              >
                110% and < 125% 

            	 	 	
              225
                b.p.

            	 	 	
              125
                b.p.

            	 	 	
              37.5
                b.p.

            	 
	
              >
                100% and < 110% 

            	 	 	
              200
                b.p.

            	 	 	
              100
                b.p.

            	 	 	
              37.5
                b.p.

            	 
	
              >
                90% and < 100%

            	 	 	
              175
                b.p.

            	 	 	
              75
                b.p.

            	 	 	
              37.5
                b.p.

            	 
	
              >
                75% and < 90%

            	 	 	
              150
                b.p.

            	 	 	
              50
                b.p.

            	 	 	
              35
                b.p.

            	 
	
              >
                50% and < 75%

            	 	 	
              125
                b.p.

            	 	 	
              25
                b.p.

            	 	 	
              30
                b.p.

            	 
	
              <
                50%

            	 	 	
              100
                b.p.

            	 	 	
              0
                b.p.

            	 	 	
              25
                b.p.

            	 

    

     

    Each
      change in the Applicable Margin and the Commitment Fee Rate shall apply during
      the period commencing on the effective date of a change in the Borrowing Base
      Utilization Percentage and ending on the date immediately preceding the
      effective date of the next such change.

     

    “Applicable
      Percentage”
means,
      with respect to any Lender, the percentage of the Aggregate Maximum Credit
      Amounts represented by such Lender’s Maximum Credit Amount as such percentage is
      set forth on Annex I or as may be adjusted from time to time in accordance
      with
      the terms hereof.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Approved
      Counterparty”
means
      (a) any Lender or any Affiliate of a Lender, (b) any other Person whose long
      term senior unsecured debt rating at the time of entry into the applicable
      Swap
      Agreement is A-/A3 by S&P or Moody’s (or their equivalent) or higher, or (c)
      with regard to Swap Agreements in respect of commodities, and subject to the
      conditions set forth therein, any other Person listed on Schedule
      1.02.

     

    “Approved
      Petroleum Engineers”
means
      (a) Ryder Scott Company Petroleum Consultants, L.P., (b) Netherland Sewell
&
Associates, Inc., (c) Wright & Company, (d) Schlumberger Ltd. and (e) any
      other independent petroleum engineers reasonably acceptable to the
      Administrative Agent.

     

    “Arranger”
means
      J.P. Morgan Securities Inc., in its capacities as the sole lead arranger and
      sole bookrunner hereunder. 

     

    “Assignee”
has
      the
      meaning set forth in Section 12.04(b).

     

    “Assignment
      and Assumption”
means
      an assignment and assumption entered into by a Lender and an assignee (with
      the
      consent of any party whose consent is required by Section
      12.04(b)),
      and
      accepted by the Administrative Agent, in the form of Exhibit G or any other
      form
      reasonably approved by the Administrative Agent.

     

    “Available
      Cash”
means,
      with respect to any fiscal quarter ending prior to the Termination
      Date:

     

    (a) the
      sum
      of (i) all cash and cash equivalents of the Parent Guarantor and its
      Subsidiaries, treated as a single consolidated entity (or the Parent Guarantor’s
      proportionate share of cash and cash equivalents in the case of Subsidiaries
      that are not Wholly-Owned Subsidiaries), on hand at the end of such fiscal
      quarter; and (ii) all additional cash and cash equivalents of the Parent
      Guarantor and its Subsidiaries (or the Parent Guarantor’s proportionate share of
      cash and cash equivalents in the case of Subsidiaries that are not Wholly-Owned
      Subsidiaries) on hand on the date of determination of Available Cash with
      respect to such fiscal quarter resulting from working capital borrowings
      (including borrowings under this Agreement) made subsequent to the end of such
      fiscal quarter, less 

     

    (b) the
      amount of any cash reserves established by the board of directors of the Parent
      Guarantor (or the Parent Guarantor’s proportionate share of cash and cash
      equivalents in the case of Subsidiaries that are not Wholly-Owned Subsidiaries)
      to (i) provide for the proper conduct of the business of the Parent Guarantor
      and its Subsidiaries (including reserves for future capital expenditures
      including drilling and acquisitions and for anticipated future credit needs
      of
      the Parent Guarantor and its Subsidiaries), (ii) comply with applicable law
      or
      any loan agreement, security agreement, mortgage, debt instrument or other
      agreement or obligation to which the Parent Guarantor or any Subsidiary is
      a
      party or by which it is bound or its assets are subject or (iii) provide funds
      for distributions pursuant to Section 6.3(a), Section 6.4 and Section 6.5 of
      the
      Operating Agreement with respect to any one or more of the next four fiscal
      quarters; provided,
      that
      disbursements made by the Parent Guarantor or its Subsidiaries or cash reserves
      established, increased or reduced after the end of such fiscal quarter but
      on or
      before the date of determination of Available Cash with respect to such fiscal
      quarter shall be deemed to have been made, established, increased or reduced,
      for purposes of determining Available Cash, within such fiscal quarter if the
      board of directors of the Parent Guarantor so determines.

     

    “Availability
      Period”
means
      the period from and including the Effective Date to but excluding the
      Termination Date. 

     

    “Board”
means
      the Board of Governors of the Federal Reserve System of the United States of
      America or any successor Governmental Authority.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Borrowing”
means
      Loans of the same Type, made, converted or continued on the same date and,
      in
      the case of Eurodollar Loans, as to which a single Interest Period is in
      effect.

     

    “Borrowing
      Base”
means
      at any time an amount equal to the amount determined in accordance with
Section
      2.07,
      as the
      same may be adjusted from time to time pursuant to Section
      2.07(f),
      Section
      8.13(c)
      or
Section
      9.11(d).

     

    “Borrowing
      Base Equalization Date”
means
      the date which is the earlier of (i) June 29, 2008 and (ii) the date (after
      consummation of the Acquisition) on which the Parent Guarantor (and has
      contributed such net cash proceeds to the Borrower) or the Borrower shall issue
      equity or debt securities in an aggregate amount of net cash proceeds at least
      equal to $200,000,000.

     

    “Borrowing
      Base Utilization Percentage”
means,
      as of any day, the fraction expressed as a percentage, the numerator of which
      is
      the sum of the Revolving Credit Exposures of the Lenders on such day, and the
      denominator of which is the Conforming Borrowing Base (or after the Borrowing
      Base Equalization Date, the Borrowing Base) in effect on such day.

     

    “Borrowing
      Request”
means
      a
      request by the Borrower for a Borrowing in accordance with Section
      2.03.

     

    “Business
      Day”
means
      any day that is not a Saturday, Sunday or other day on which commercial banks
      in
      New York, New York, are authorized or required by law to remain closed; and
      if
      such day relates to a Borrowing or continuation of, a payment or prepayment
      of
      principal of or interest on, or a conversion of or into, or the Interest Period
      for, a Eurodollar Loan or a notice by the Borrower with respect to any such
      Borrowing or continuation, payment, prepayment, conversion or Interest Period,
      any day which is also a day on which dealings in dollar deposits are carried
      out
      in the London interbank market.

     

    “Capital
      Leases”
means,
      in respect of any Person, all leases which shall have been, or should have
      been,
      in accordance with GAAP, recorded as capital leases on the balance sheet of
      the
      Person liable (whether contingent or otherwise) for the payment of rent
      thereunder.

     

    “Casualty
      Event”
means
      any loss, casualty or other insured damage to, or any nationalization, taking
      under power of eminent domain or by condemnation or similar proceeding of,
      any
      Property of the Parent Guarantor or any of its Subsidiaries having a fair market
      value in excess of $25,000,000.

     

    “Change
      in Control”
means
      (a) the acquisition of ownership, directly or indirectly, beneficially or of
      record, by any Person or group of Persons acting in concert as a partnership
      or
      other “group” (within the meaning of the Securities Exchange Act of 1934 and the
      rules of the SEC thereunder as in effect on the date hereof) of Equity Interests
      representing more than 35% of the aggregate ordinary voting power represented
      by
      the issued and outstanding Equity Interests of the Parent Guarantor (or its
      successor by merger, consolidation or purchase of all or substantially all
      of
      its assets); (b) occupation of a majority of the seats (other than vacant seats)
      on the board of directors of the Parent Guarantor by Persons who were neither
      (i) nominated by the board of directors of the Parent Guarantor nor (ii)
      appointed by directors so nominated; (c) the Parent Guarantor ceases to be
      the
      sole member of the Borrower; or (d) Atlas America, Inc., a Delaware corporation,
      and/or one or more of its directly or indirectly Wholly-Owned Subsidiaries
      ceases to own at least 51% of the issued and outstanding voting Equity Interests
      of Atlas Energy Management, Inc., a Delaware corporation.

     

    “Change
      in Law”
means
      (a) the adoption of any law, rule or regulation after the date of this
      Agreement, (b) any change in any law, rule or regulation or in the
      interpretation or application thereof by any Governmental Authority after the
      date of this Agreement or (c) compliance by any Lender or the Issuing Bank
      (or,
      for purposes of Section
      5.01(b),
      by any
      lending office of such Lender or by such Lender’s or the Issuing Bank’s holding
      company, if any) with any request, guideline or directive (whether or not having
      the force of law) of any Governmental Authority made or issued after the date
      of
      this Agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    “Closing
      Date MAE”
means
      a
“Material Adverse Effect” as defined in the Acquisition Agreement affecting the
      Target and entitling the buyer not to complete the Acquisition pursuant to
      Section 9.12 of the Acquisition Agreement.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended from time to time, and any
      successor statute.

     

    “Commitment”
means,
      with respect to each Lender, the commitment of such Lender to make Loans and
      to
      acquire participations in Letters of Credit hereunder, expressed as an amount
      representing the maximum aggregate amount of such Lender’s Revolving Credit
      Exposure hereunder, as such commitment may be (a) modified from time to time
      pursuant to Section
      2.06
      and (b)
      modified from time to time pursuant to assignments by or to such Lender pursuant
      to Section
      12.04(b);
      and
“Commitments”
means
      the aggregate amount of the Commitments of all the Lenders. The amount
      representing each Lender’s Commitment shall at any time be the lesser of
(i)
      such
      Lender’s Maximum Credit Amount and (ii)
      such
      Lender’s Applicable Percentage of the then effective Borrowing Base. As of the
      Closing Date, the aggregate Commitments of the Lenders are
      $850,000,000.

     

    “Commitment
      Fee Rate”
means,
      for any day, the rate set forth in the definition of “Applicable
      Margin”.

     

    “Conduit
      Lender”
means
      any special purpose corporation organized and administered by any Lender for
      the
      purpose of making Loans otherwise required to be made by such Lender and
      designated by such Lender in a written instrument; provided,
      that
      the designation by any Lender of a Conduit Lender shall not relieve the
      designating Lender of any of its obligations to fund a Loan under this Agreement
      if, for any reason, its Conduit Lender fails to fund any such Loan, and the
      designating Lender (and not the Conduit Lender) shall have the sole right and
      responsibility to deliver all consents and waivers required or requested under
      this Agreement with respect to its Conduit Lender, and provided,
      further,
      that no
      Conduit Lender shall (a) be entitled to receive any greater amount pursuant
      to
      Section 5.01, 5.02, 5.03 or 12.03 than the designating Lender would have been
      entitled to receive in respect of the extensions of credit made by such Conduit
      Lender or (b) be deemed to have any Commitment.

     

    “Conforming
      Borrowing Base”
means
      at any time an amount equal to the amount determined in accordance with
Section
      2.07,
      as the
      same may be adjusted from time to time pursuant to Section
      2.07(f),
      Section
      8.13(c)
      or
Section
      9.11(d).

     

    “Consolidated
      Net Income”
means
      with respect to the Parent Guarantor and the Consolidated Subsidiaries, for
      any
      period, the aggregate of the net income (or loss) of the Parent Guarantor and
      the Consolidated Subsidiaries after allowances for taxes for such period
      determined on a consolidated basis in accordance with GAAP; provided that there
      shall be excluded from such net income (to the extent otherwise included
      therein) the following: (a) the net income of any Person in which the Parent
      Guarantor or any Consolidated Subsidiary has an interest (which interest does
      not cause the net income of such other Person to be consolidated with the net
      income of the Parent Guarantor and the Consolidated Subsidiaries in accordance
      with GAAP), except to the extent of the amount of dividends or distributions
      actually paid in cash during such period by such other Person to the Parent
      Guarantor or to a Consolidated Subsidiary, as the case may be; (b) the net
      income (but not loss) during such period of any Consolidated Subsidiary to
      the
      extent that the declaration or payment of dividends or similar distributions
      or
      transfers or loans by that Consolidated Subsidiary is not at the time permitted
      by operation of the terms of its charter or any agreement, instrument or
      Governmental Requirement applicable to such Consolidated Subsidiary or is
      otherwise restricted or prohibited, in each case determined in accordance with
      GAAP; (c) the net income (or loss) of any Person acquired in a
      pooling-of-interests transaction for any period prior to the date of such
      transaction; (d) any extraordinary gains or losses during such period; and
      (e)
      any gains or losses attributable to writeups or writedowns of assets, including
      write-downs under FASB 142 and FASB 144 (to the extent such amounts have been
      deducted in calculating Consolidated Net Income), provided, however, that any
      ceiling limitation writedowns under SEC guidelines shall be treated as
      capitalized costs, as if such writedowns had not occurred; and provided further
      that if the Parent Guarantor or any Consolidated Subsidiary shall acquire or
      dispose of any Property during such period having a fair market value in excess
      of $5,000,000, then Consolidated Net Income shall be calculated after giving
      pro
      forma
      effect
      to such acquisition or disposition, as if such acquisition or disposition had
      occurred on the first day of such period.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    “Consolidated
      Subsidiaries”
means
      each Subsidiary (other than an Unrestricted Subsidiary) of the Parent Guarantor
      (whether now existing or hereafter created or acquired) the financial statements
      of which shall be (or should have been) consolidated with the financial
      statements of the Parent Guarantor in accordance with GAAP.

     

    “Control”
means
      the possession, directly or indirectly, of the power to direct or cause the
      direction of the management or policies of a Person, whether through the ability
      to exercise voting power, by contract or otherwise. For the purposes of this
      definition, and without limiting the generality of the foregoing, any Person
      that owns directly or indirectly 5% or more of the Equity Interests having
      ordinary voting power for the election of the directors or other governing
      body
      of a Person (other than as a limited partner of such other Person) will be
      deemed to “control” such other Person. “Controlling”
and
      “Controlled”
have
      meanings correlative thereto.

     

    “Debt”
means,
      for any Person, the sum of the following (without duplication): (a) all
      obligations of such Person for borrowed money or evidenced by bonds, bankers’
acceptances, debentures, notes or other similar instruments; (b) all obligations
      of such Person (whether contingent or otherwise) in respect of letters of
      credit, surety or other bonds and similar instruments; (c) all accounts payable
      and all accrued expenses, liabilities or other obligations of such Person to
      pay
      the deferred purchase price of Property or services; (d) all obligations under
      Capital Leases; (e) all obligations under Synthetic Leases; (f) all Debt (as
      defined in the other clauses of this definition) of others secured by a Lien
      on
      any Property of such Person, whether or not such Debt is assumed by such Person;
      (g) all Debt (as defined in the other clauses of this definition) of others
      guaranteed by such Person or in which such Person otherwise assures a creditor
      against loss of the Debt (howsoever such assurance shall be made) to the extent
      of the lesser of the amount of such Debt and the maximum stated amount of such
      guarantee or assurance against loss; (h) all obligations or undertakings of
      such
      Person to maintain or cause to be maintained the financial position or covenants
      of others or to purchase the Debt or Property of others; (i) obligations to
      deliver commodities, goods or services, including, without limitation,
      Hydrocarbons, in consideration of one or more advance payments for periods
      in
      excess of 120 days prior to the day of delivery, other than sales of
      Hydrocarbons and gas balancing arrangements in the ordinary course of business;
      (j) obligations to pay for goods or services whether or not such goods or
      services are actually received or utilized by such Person; (k) any Debt of
      a
      partnership for which such Person is liable either by agreement, by operation
      of
      law or by a Governmental Requirement but only to the extent of such liability;
      (l) Disqualified Capital Stock; and (m) the undischarged balance of any
      production payment created by such Person or for the creation of which such
      Person directly or indirectly received payment. The Debt of any Person shall
      include all obligations of such Person of the character described above to
      the
      extent such Person remains legally liable in respect thereof notwithstanding
      that any such obligation is not included as a liability of such Person under
      GAAP.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    “Default”
means
      any event or condition which constitutes an Event of Default or which upon
      notice, lapse of time or both would, unless cured or waived, become an Event
      of
      Default.

     

    “Disqualified
      Capital Stock”
means
      any Equity Interest that, by its terms (or by the terms of any security into
      which it is convertible or for which it is exchangeable) or upon the happening
      of any event, matures or is mandatorily redeemable for any consideration other
      than other Equity Interests (which would not constitute Disqualified Capital
      Stock), pursuant to a sinking fund obligation or otherwise, or is convertible
      or
      exchangeable for Debt or redeemable for any consideration other than other
      Equity Interests (which would not constitute Disqualified Capital Stock) at
      the
      option of the holder thereof, in whole or in part, on or prior to the date
      that
      is one year after the earlier of (a) the Maturity Date and (b) the date on
      which
      there are no Loans, LC Exposure or other obligations hereunder outstanding
      and
      all of the Commitments are terminated. Notwithstanding the preceding sentence,
      any Equity Interest that would constitute Disqualified Capital Stock solely
      because (i) the holders thereof have the right to require the Person to
      repurchase such Equity Interests upon the occurrence of a change of control
      or
      an asset sale shall not constitute Disqualified Capital Stock.

    

    “dollars”
or
“$”
      refers to lawful money of the United States of America.

     

    “Domestic
      Subsidiary”
means
      any Subsidiary that is organized under the laws of the United States of America
      or any state thereof or the District of Columbia.

     

    “EBITDA”
means,
      for any period, the sum of Consolidated Net Income for such period plus the
      following expenses or charges, without duplication and to the extent deducted
      from Consolidated Net Income in such period: interest, income taxes,
      depreciation, depletion, amortization and other noncash charges and expenses
      (including stock based compensation under FASB 123R and noncash losses under
      FASB 133 as a result of changes in the fair market value of derivatives), minus
      all noncash income added to Consolidated Net Income (including all noncash
      gains
      under FASB 133 as a result of changes in the fair market value of derivatives);
      provided that EBITDA for each of the four fiscal quarters set forth below shall
      be calculated after giving pro forma effect to the Acquisition by adding the
      Acquisition EBITDA amount set forth opposite such date to actual historical
      EBITDA for such fiscal quarter:

     

    

      
        	
                September
                  30, 2006

              	 	
                $

              	
                27,325,000

              	 
	
                December
                  31, 2006

              	 	
                $

              	
                27,325,000

              	 
	
                March
                  31, 2007

              	 	
                $

              	
                24,735,000

              	 
	
                June
                  30, 2007

              	 	
                $

              	
                25,000,000.

              	 

      

    

     

    “Effective
      Date”
means
      the date on which the conditions specified in Section
      6.01
      are
      satisfied (or waived in accordance with Section
      12.02).

     

    “Engineering
      Reports”
has
      the
      meaning assigned such term in Section
      2.07(c)(i).

     

    “Environmental
      Laws”
means
      any and all Governmental Requirements pertaining in any way to health, safety,
      the environment, the preservation or reclamation of natural resources, or the
      management, Release or threatened Release of any Hazardous Materials, in effect
      in any and all jurisdictions in which the Parent Guarantor or any Subsidiary
      is
      conducting, or at any time has conducted, business, or where any Property of
      the
      Parent Guarantor or any Subsidiary is located, including, the Oil Pollution
      Act
      of 1990 (“OPA”),
      as
      amended, the Clean Air Act, as amended, the Comprehensive Environmental,
      Response, Compensation, and Liability Act of 1980 (“CERCLA”),
      as
      amended, the Federal Water Pollution Control Act, as amended, the Occupational
      Safety and Health Act of 1970, as amended, the Resource Conservation and
      Recovery Act of 1976 (“RCRA”),
      as
      amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control
      Act, as amended, the Superfund Amendments and Reauthorization Act of 1986,
      as
      amended, the Hazardous Materials Transportation Law, as amended, and other
      environmental conservation or protection Governmental Requirements.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    “Equity
      Interests”
means
      shares of capital stock, partnership interests, membership interests in a
      limited liability company, beneficial interests in a trust or other equity
      ownership interests in a Person, and any warrants, options or other rights
      entitling the holder thereof to purchase or acquire any such Equity
      Interest.

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended, and any
      successor statutes, and all regulations and guidances promulgated
      thereunder.

     

    “ERISA
      Affiliate”
means
      each trade or business (whether or not incorporated) which together with the
      Parent Guarantor or a Subsidiary would be deemed to be a “single employer”
within the meaning of section 4001(b)(1) of ERISA or subsections (b), (c),
      (m)
      or (o) of section 414 of the Code.

     

    “ERISA
      Event”
means
      (a) a “Reportable Event” described in section 4043 of ERISA, other than a
      Reportable Event as to which the provisions of 30 days notice to the PBGC is
      expressly waived under applicable regulations, (b) the withdrawal of the Parent
      Guarantor, a Subsidiary or any ERISA Affiliate from a Plan during a plan year
      in
      which it was a “substantial employer” as defined in section 4001(a)(2) of ERISA,
      (c) the filing of a notice of intent to terminate a Plan or the treatment of
      a
      Plan amendment as a termination under section 4041 of ERISA, (d) the institution
      of proceedings to terminate a Plan by the PBGC, (e) receipt of a notice of
      withdrawal liability pursuant to Section 4202 of ERISA or (f) any other event
      or
      condition which might constitute grounds under section 4042 of ERISA for the
      termination of, or the appointment of a trustee to administer, any
      Plan.

     

    “Eurodollar”,
      when
      used in reference to any Loan or Borrowing, refers to whether such Loan, or
      the
      Loans comprising such Borrowing, are bearing interest at a rate determined
      by
      reference to the Adjusted LIBO Rate.

     

    “Event
      of Default”
has
      the
      meaning assigned such term in Section
      10.01.

     

    “Excepted
      Liens”
means:
      (a) Liens for taxes, assessments or other governmental charges or levies which
      are not delinquent or which are being contested in good faith by appropriate
      action and for which adequate reserves have been maintained in accordance with
      GAAP; (b) Liens in connection with workers’ compensation, unemployment insurance
      or other social security, old age pension or public liability obligations which
      are not delinquent or which are being contested in good faith by appropriate
      action and for which adequate reserves have been maintained in accordance with
      GAAP; (c) statutory landlord’s liens, operators’, vendors’, carriers’,
      warehousemen’s, repairmen’s, mechanics’, suppliers’, workers’, materialmen’s,
      construction or other like Liens arising by operation of law in the ordinary
      course of business or incident to the exploration, development, operation and
      maintenance of Oil and Gas Properties each of which is in respect of obligations
      that are not delinquent or which are being contested in good faith by
      appropriate action and for which adequate reserves have been maintained in
      accordance with GAAP; (d) contractual Liens which arise in the ordinary course
      of business under operating agreements, joint venture agreements, oil and gas
      partnership agreements, oil and gas leases, farm-out agreements, division
      orders, contracts for the sale, transportation or exchange of oil and natural
      gas, unitization and pooling declarations and agreements, area of mutual
      interest agreements, overriding royalty agreements, marketing agreements,
      processing agreements, net profits agreements, development agreements, gas
      balancing or deferred production agreements, injection, repressuring and
      recycling agreements, salt water or other disposal agreements, seismic or other
      geophysical permits or agreements, and other agreements which are usual and
      customary in the oil and gas business and are for claims which are not
      delinquent or which are being contested in good faith by appropriate action,
      provided that any such Lien referred to in this clause does not materially
      impair the use of the Property covered by such Lien for the purposes for which
      such Property is held by the Parent Guarantor or any Subsidiary or materially
      impair the value of such Property subject thereto; (e) Liens arising solely
      by
      virtue of any statutory or common law provision relating to banker’s liens,
      rights of set-off or similar rights and remedies and burdening only deposit
      accounts or other funds maintained with a creditor depository institution,
      provided that no such deposit account is a dedicated cash collateral account
      or
      is subject to restrictions against access by the depositor in excess of those
      set forth by regulations promulgated by the Board and no such deposit account
      is
      intended by Parent Guarantor or any of its Subsidiaries to provide collateral
      to
      the depository institution; (f) easements, restrictions, servitudes, permits,
      conditions, covenants, exceptions or reservations in any Property of the Parent
      Guarantor or any Subsidiary for the purpose of roads, pipelines, transmission
      lines, transportation lines, distribution lines for the removal of gas, oil,
      coal or other minerals or timber, and other like purposes, or for the joint
      or
      common use of real estate, rights of way, facilities and equipment which in
      the
      aggregate do not materially impair the use of such Property for the purposes
      of
      which such Property is held by the Parent Guarantor or any Subsidiary or
      materially impair the value of such Property subject thereto; (g) Liens on
      cash
      or securities pledged to secure performance of tenders, surety and appeal bonds,
      government contracts, performance and return of money bonds, bids, trade
      contracts, leases, statutory obligations, regulatory obligations and other
      obligations of a like nature incurred in the ordinary course of business; (h)
      judgment and attachment Liens not giving rise to an Event of Default, provided
      that any appropriate legal proceedings which may have been duly initiated for
      the review of such judgment shall not have been finally terminated or the period
      within which such proceeding may be initiated shall not have expired and no
      action to enforce such Lien has been commenced; and (i) Liens arising from
      Uniform Commercial Code financing statement filings regarding operating leases
      entered into by the Parent Guarantor and the Subsidiaries in the ordinary course
      of business covering only the Property under lease; provided, further that
      (1)
      Liens described in clauses (a) through (e), (g) and (h) shall remain “Excepted
      Liens” only for so long as no action to enforce such Lien has been commenced and
      (2) no intention to subordinate the first priority Lien granted in favor of
      the
      Administrative Agent and the Lenders is to be hereby implied or expressed by
      the
      permitted existence of any Excepted Lien.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    “Existing
      Credit Agreement”
means
      that certain Revolving Credit Agreement dated as of December 18, 2006 among
      the
      Borrower, the guarantors, lenders and agents named therein, and Wachovia Bank,
      National Association, as administrative agent.

     

    “Existing
      Letters of Credit”
means
      the letters of credit set forth in Schedule 1.02(b).

     

    “Expense
      Sharing Agreement”
means
      that certain Applicant’s Expense Agreement dated as of March 24, 2006 between
      Anthem Securities, Inc. and Atlas Resources, LLC.

     

    “Federal
      Funds Effective Rate”
means,
      for any day, the weighted average (rounded upwards, if necessary, to the next
      1/100 of 1%) of the rates on overnight Federal funds transactions with members
      of the Federal Reserve System arranged by Federal funds brokers, as published
      on
      the next succeeding Business Day by the Federal Reserve Bank of New York or,
      if
      such rate is not so published for any day that is a Business Day, the average
      (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations
      for
      such day for such transactions received by the Administrative Agent from three
      Federal funds brokers of recognized standing selected by it.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    “Financial
      Officer”
means,
      for any Person, the chief financial officer, principal accounting officer,
      treasurer or controller of such Person. Unless otherwise specified, all
      references herein to a Financial Officer means a Financial Officer of the Parent
      Guarantor.

     

    “Financial
      Statements”
means
      the financial statement or statements of the Parent Guarantor and its
      Consolidated Subsidiaries referred to in Section
      7.04(a).

     

    “Foreign
      Subsidiary”
means
      any Subsidiary that is not a Domestic Subsidiary.

     

    “GAAP”
means
      generally accepted accounting principles in the United States as in effect
      from
      time to time.

     

    “Governmental
      Authority”
means
      the government of the United States of America, any other nation or any
      political subdivision thereof, whether state or local, and any agency,
      authority, instrumentality, regulatory body, court, central bank or other entity
      exercising executive, legislative, judicial, taxing, regulatory or
      administrative powers or functions of or pertaining to government over the
      Parent Guarantor, the Borrower any Subsidiary, any of their Properties, any
      Agent, the Issuing Bank or any Lender.

     

    “Governmental
      Requirement”
means
      any applicable law, statute, code, ordinance, order, determination, rule,
      regulation, judgment, decree, injunction, franchise, permit, certificate,
      license, authorization or other directive or requirement, whether now or
      hereinafter in effect, including, without limitation, Environmental Laws, energy
      regulations and occupational, safety and health standards or controls, of any
      Governmental Authority.

     

    “Guarantors”
      means:

     

    
      	 	
              ·

            	
              the
                Parent Guarantor,

            

    

     

    
      	 	
              ·

            	
              AER
                PIPELINE CONSTRUCTION, INC.,

            

    

     

    
      	 	
              ·

            	
              AIC,
                LLC,

            

    

     

    
      	 	
              ·

            	
              ATLAS
                AMERICA, LLC,

            

    

     

    
      	 	
              ·

            	
              ATLAS
                ENERGY OHIO, LLC,

            

    

     

    
      	 	
              ·

            	
              ATLAS
                NOBLE, LLC,

            

    

     

    
      	 	
              ·

            	
              ATLAS
                RESOURCES, LLC,

            

    

     

    
      	 	
              ·

            	
              ATLAS
                ENERGY MICHIGAN, LLC,

            

    

     

    
      	 	
              ·

            	
              ATLAS
                GAS & OIL COMPANY,
                LLC,

            

    

     

    
      	 	
              ·

            	
              WESTSIDE
                PIPELINE COMPANY, LLC,

            

    

     

    
      	 	
              ·

            	
              REI-NY,
                LLC,

            

    

     

    
      	 	
              ·

            	
              RESOURCE
                ENERGY, LLC,

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	 	
              ·

            	
              RESOURCE
                WELL SERVICES, LLC,

            

    

     

    
      	 	
              ·

            	
              VIKING
                RESOURCES LLC, and

            

    

     

    
      	 	
              ·

            	
              each
                other Material Subsidiary that guarantees the Indebtedness pursuant
                to
                Section
                8.14(b).

            

    

     

    “Guaranty
      Agreement”
means
      an agreement executed by the Guarantors in substantially the form of Exhibit
      F-2
      unconditionally guarantying on a joint and several basis, payment of the
      Indebtedness, as the same may be amended, modified or supplemented from time
      to
      time.

     

    “Hazardous
      Material”
means
      any substance regulated or as to which liability might arise under any
      applicable Environmental Law including: (a) any chemical, compound, material,
      product, byproduct, substance or waste defined as or included in the definition
      or meaning of “hazardous substance,” “hazardous material,” “hazardous waste,”
“solid waste,” “toxic waste,” “extremely hazardous substance,” “toxic
      substance,” “contaminant,” “pollutant,” or words of similar meaning or import
      found in any applicable Environmental Law; (b) Hydrocarbons, petroleum products,
      petroleum substances, natural gas, oil, oil and gas waste, crude oil, and any
      components, fractions, or derivatives thereof; and (c) radioactive materials,
      explosives, asbestos or asbestos containing materials, polychlorinated
      biphenyls, radon, infectious or medical wastes.

     

    “Hydrocarbon
      Interests”
means
      all rights, titles, interests and estates now or hereafter acquired in and
      to
      oil and gas leases, oil, gas and mineral leases, or other liquid or gaseous
      hydrocarbon leases, mineral fee interests, overriding royalty and royalty
      interests, net profit interests and production payment interests, including
      any
      reserved or residual interests of whatever nature.

     

    “Hydrocarbons”
means
      oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate,
      distillate, liquid hydrocarbons, gaseous hydrocarbons and all products refined
      or separated therefrom.

     

    “Indebtedness”
means
      any and all amounts owing or to be owing by the Parent Guarantor, the Borrower
      or any Subsidiary: (a) to the Administrative Agent, any Issuing Bank or any
      Lender under any Loan Document; (b) to any Lender or any Affiliate of a Lender
      under any Swap Agreement or any Specified Cash Management Agreements between
      the
      Parent Guarantor, the Borrower or any Subsidiary and such Lender or Affiliate
      of
      a Lender while such Person (or in the case of its Affiliate, the Person
      affiliated therewith) is a Lender hereunder and (c) all renewals, extensions
      and/or rearrangements of any of the above.

     

    “Information
      Memorandum”
means
      the Confidential Information Memorandum dated June 2007 relating to the Parent
      Guarantor, the Borrower and the Transactions.

     

    “Initial
      Reserve Report”
means
      the report of the Borrower dated February 28, 2007, with respect to certain
      Oil
      and Gas Properties of the Borrower and its Subsidiaries as of December 31,
      2006
      and with respect to the Acquisition Properties the report of Schlumberger dated
      as of June 4, 2007 evaluating such Properties as of June 30, 2007. 

     

    “Interest
      Election Request”
means
      a
      request by the Borrower to convert or continue a Borrowing in accordance with
      Section
      2.04.

     

    “Interest
      Payment Date”
means
      (a) with respect to any ABR Loan, the last day of each March, June, September
      and December and (b) with respect to any Eurodollar Loan, the last day of the
      Interest Period applicable to the Borrowing of which such Loan is a part and,
      in
      the case of a Eurodollar Borrowing with an Interest Period of more than three
      months’ duration, each day prior to the last day of such Interest Period that
      occurs at intervals of three months’ duration after the first day of such
      Interest Period.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    “Interest
      Period”
means
      with respect to any Eurodollar Borrowing, the period commencing on the date
      of
      such Borrowing and ending on the numerically corresponding day in the calendar
      month that is one, two, three or six months, and if available by all the
      Lenders, nine months thereafter, as the Borrower may elect; provided, that
      (a)
      if any Interest Period would end on a day other than a Business Day, such
      Interest Period shall be extended to the next succeeding Business Day unless
      such next succeeding Business Day would fall in the next calendar month, in
      which case such Interest Period shall end on the next preceding Business Day,
      (b) no Interest Period may have a term which would extend beyond the Maturity
      Date and (c) any Interest Period pertaining to a Eurodollar Borrowing that
      commences on the last Business Day of a calendar month (or on a day for which
      there is no numerically corresponding day in the last calendar month of such
      Interest Period) shall end on the last Business Day of the last calendar month
      of such Interest Period. For purposes hereof, the date of a Borrowing initially
      shall be the date on which such Borrowing is made and thereafter shall be the
      effective date of the most recent conversion or continuation of such
      Borrowing.

     

    “Interim
      Redetermination”
has
      the
      meaning assigned such term in Section
      2.07(b).

     

    “Interim
      Redetermination Date”
means
      the date on which a Borrowing Base that has been redetermined pursuant to an
      Interim Redetermination becomes effective as provided in Section
      2.07(d).

     

    “Investment”
means,
      for any Person: (a) the acquisition (whether for cash, Property, services or
      securities or otherwise) of Equity Interests of any other Person or any
      agreement to make any such acquisition (including, without limitation, capital
      contributions, any “short sale” or any sale of any securities at a time when
      such securities are not owned by the Person entering into such short sale),
      (b)
      the making of any deposit with, or advance, loan or other extension of credit
      to, any other Person (including the purchase of Property from another Person
      subject to an understanding or agreement, contingent or otherwise, to resell
      such Property to such Person, but excluding any such advance, loan or extension
      of credit having a term not exceeding ninety (90) days representing the purchase
      price of inventory or supplies sold by such Person in the ordinary course of
      business) or (c) the entering into of any guarantee of, or other contingent
      obligation (including the deposit of any Equity Interests to be sold) with
      respect to, Debt or other liability of any other Person and (without
      duplication) any amount committed to be advanced, lent or extended to such
      Person.

     

    “Issuing
      Bank”
      means JPMorgan
      in its capacity as the issuer of Letters of Credit hereunder and, as the context
      requires with respect to the Existing Letters of Credit only, Wachovia Bank,
      N.A. The Issuing Bank may, in its discretion, arrange for one or more Letters
      of
      Credit to be issued by Affiliates of the Issuing Bank, in which case the term
      “Issuing
      Bank”
shall
      include any such Affiliate with respect to Letters of Credit issued by such
      Affiliate.

     

    “LC
      Commitment”
at
      any
      time means Fifty Million dollars ($50,000,000).

     

    “LC
      Disbursement”
means
      a
      payment made by the Issuing Bank pursuant to a Letter of Credit.

     

    “LC
      Exposure”
means,
      at any time, the sum of (a) the aggregate undrawn amount of all outstanding
      Letters of Credit at such time plus (b) the aggregate amount of all LC
      Disbursements that have not yet been reimbursed by or on behalf of the Borrower
      at such time. The LC Exposure of any Lender at any time shall be its Applicable
      Percentage of the total LC Exposure at such time.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    “Lenders”
means
      the Persons listed on Annex I, any Person that shall have become a party hereto
      pursuant to an Assignment and Assumption, other than any such Person that ceases
      to be a party hereto pursuant to an Assignment and Assumption, and any Person
      that shall have become a party hereto as an Additional Lender pursuant to
Section
      2.06(c);
      provided,
      that
      unless the context otherwise requires, each reference herein to the Lenders
      shall be deemed to include any Conduit Lender.

     

    “Letter
      of Credit”
means
      any letter of credit issued pursuant to this Agreement, including the Existing
      Letters of Credit.

     

    “Letter
      of Credit Agreements”
means
      all letter of credit applications and other agreements (including any
      amendments, modifications or supplements thereto) submitted by the Borrower
      or
      entered into by the Borrower with the Issuing Bank relating to any Letter of
      Credit.

     

    “LIBO
      Rate”
means,
      with respect to each day during each Interest Period pertaining to a Eurodollar
      Loan, the rate per annum determined on the basis of the rate for deposits in
      dollars for a period equal to such Interest Period commencing on the first
      day
      of such Interest Period appearing on the Reuters Screen LIBOR01 Page as of
      11:00
      A.M., London time, two Business Days prior to the beginning of such Interest
      Period. In the event that such rate does not appear on such page (or otherwise
      on such screen), the “LIBO
      Rate”
shall
      be determined by reference to such other comparable publicly available service
      for displaying eurodollar rates as may be selected by the Administrative Agent
      or, in the absence of such availability, by reference to the rate at which
      the
      Administrative Agent is offered dollar deposits at or about 11:00 A.M., London
      time, two Business Days prior to the beginning of such Interest Period in the
      interbank eurodollar market where its eurodollar and foreign currency and
      exchange operations are then being conducted for delivery on the first day
      of
      such Interest Period for the number of days comprised therein.

     

    “Lien”
means
      any interest in Property securing an obligation owed to, or a claim by, a Person
      other than the owner of the Property, whether such interest is based on the
      common law, statute or contract, and whether such obligation or claim is fixed
      or contingent, and including but not limited to (a) the lien or security
      interest arising from a mortgage, encumbrance, pledge, security agreement,
      conditional sale or trust receipt or a lease, consignment or bailment for
      security purposes or (b) production payments and the like payable out of Oil
      and
      Gas Properties. The term “Lien”
shall
      include easements, restrictions, servitudes, permits, conditions, covenants,
      exceptions or reservations. For the purposes of this Agreement, the Parent
      Guarantor and its Subsidiaries shall be deemed to be the owner of any Property
      which it has acquired or holds subject to a conditional sale agreement, or
      leases under a financing lease or other arrangement pursuant to which title
      to
      the Property has been retained by or vested in some other Person in a
      transaction intended to create a financing.

     

    “Loan
      Documents”
means
      this Agreement, the Notes, if any, the Letter of Credit Agreements, the Letters
      of Credit and the Security Instruments.

     

    “Loan
      Parties”
means
      the Borrower and each Guarantor, including the Parent Guarantor.

     

    “Loans”
means
      the loans made by the Lenders to the Borrower pursuant to this
      Agreement.

     

    “Majority
      Lenders”
means,
      at any time while no Loans or LC Exposure is outstanding, Lenders having greater
      than fifty percent (50%) of the Aggregate Maximum Credit Amounts; and at any
      time while any Loans or LC Exposure is outstanding, Lenders holding greater
      than
      fifty percent (50%) of the outstanding aggregate principal amount of the Loans
      or participation interests in Letters of Credit (without regard to any sale
      by a
      Lender of a participation in any Loan under Section
      12.04(c)).

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    “Management
      Agreement”
means
      the Management Agreement dated as of December 18, 2006 between the Parent
      Guarantor and Atlas Energy Management, Inc., a Delaware corporation.

     

    “Material
      Adverse Effect”
means
      any event, development or circumstance that has had or could reasonably be
      expected to have a material adverse effect on (a) the assets or Properties,
      financial condition, businesses or operations of the Loan Parties, taken as
      a
      whole, (b) the ability of the Loan Parties to carry out its business as of
      the
      Effective Date or as proposed to be conducted on the Effective Date, or (c)
      the
      validity or enforceability of any of the Loan Documents or the rights and
      remedies available to the Administrative Agent, any other Agent, the Issuing
      Bank or any Lender under any Loan Document.

     

    “Material
      Indebtedness”
means
      Debt (other than the Loans and Letters of Credit), or obligations in respect
      of
      one or more Swap Agreements, of any one or more of the Parent Guarantor and
      its
      Subsidiaries in an aggregate principal amount exceeding $25,000,000. For
      purposes of determining Material Indebtedness, the “principal amount” of the
      obligations of the Parent Guarantor or any Subsidiary in respect of any Swap
      Agreement at any time shall be the maximum aggregate amount (giving effect
      to
      any netting agreements) that the Parent Guarantor or such Subsidiary would
      be
      required to pay if such Swap Agreement were terminated at such time, including
      unpaid amounts in respect of such Swap Agreement.

     

    “Material
      Subsidiary”
means,
      as of any date, any Subsidiary (other than an Unrestricted Subsidiary) that
      (a)
      is a Wholly-Owned Subsidiary and (b) together with its Subsidiaries (other
      than
      Unrestricted Subsidiaries), owns Property having a fair market value of $250,000
      or more.

     

    “Maturity
      Date”
means
      June 29, 2012.

     

    “Maximum
      Credit Amount”
means,
      as to each Lender, the amount set forth opposite such Lender’s name on Annex I
      under the caption “Maximum Credit Amounts”, as the same may be (a) reduced or
      terminated from time to time in connection with a reduction or termination
      of
      the Aggregate Maximum Credit Amounts pursuant to Section
      2.06(b),
      (b)
      increased from time to time pursuant to Section
      2.06(c)
      or (c)
      modified from time to time pursuant to any assignment permitted by Section
      12.04(b).
      As of
      the Closing Date, the aggregate Maximum Credit Amounts of the Lenders are
      $850,000,000.

     

    “Maximum
      Credit Amount Increase Certificate”
has
      the
      meaning assigned to such term in Section
      2.06(c)(ii)(D).

     

    “Moody’s”
means
      Moody’s Investors Service, Inc. and any successor thereto that is a nationally
      recognized rating agency.

     

    “Mortgaged
      Property”
means
      any Property owned by any Loan Party which is subject to the Liens existing
      and
      to exist under the terms of the Security Instruments.

     

    “Multiemployer
      Plan”
means
      a
      Plan which is a multiemployer plan as defined in section 3(37) or 4001 (a)(3)
      of
      ERISA.

     

    “New
      Borrowing Base Notice”
has
      the
      meaning assigned such term in Section
      2.07(d).

     

    “Non-Recourse
      Debt”
means
      any Debt of any Unrestricted Subsidiary, in each case in respect of which:
      (a)
      the holder or holders thereof (i) shall have recourse only to, and shall have
      the right to require the obligations of such Unrestricted Subsidiary to be
      performed, satisfied, and paid only out of, the Property of such Unrestricted
      Subsidiary and/or one or more of its Subsidiaries (but only to the extent that
      such Subsidiaries are Unrestricted Subsidiaries) and/or any other Person (other
      than any Loan Party or any of their Subsidiaries which have not been designated
      as Unrestricted Subsidiaries) and (ii) shall have no direct or indirect recourse
      (including by way of guaranty, support or indemnity) to any Loan Party or any
      of
      their Subsidiaries which have not be designated as Unrestricted Subsidiaries
      or
      to any of the Property of such Persons, whether for principal, interest, fees,
      expenses or otherwise; and (b) the terms and conditions relating to the
      non-recourse nature of such Debt are in form and substance reasonably acceptable
      to the Administrative Agent.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    “Non-US
      Lender”
has
      the
      meaning set forth in Section
      5.03(d).

     

    “Notes”
means
      the promissory notes, if any, of the Borrower described in Section
      2.02(c)
      and
      being substantially in the form of Exhibit A, together with all amendments,
      modifications, replacements, extensions and rearrangements thereof.

     

    “Oil
      and Gas Properties”
means
      (a) Hydrocarbon Interests; (b) the Properties now or hereafter pooled or
      unitized with Hydrocarbon Interests; (c) all presently existing or future
      unitization, pooling agreements and declarations of pooled units and the units
      created thereby (including without limitation all units created under orders,
      regulations and rules of any Governmental Authority) which may affect all or
      any
      portion of the Hydrocarbon Interests; (d) all operating agreements,
      contracts and other agreements, including production sharing contracts and
      agreements, which relate to any of the Hydrocarbon Interests or the production,
      sale, purchase, exchange or processing of Hydrocarbons from or attributable
      to
      such Hydrocarbon Interests; (e) all Hydrocarbons in and under and which may
      be
      produced and saved or attributable to the Hydrocarbon Interests, including
      all
      oil in tanks, and all rents, issues, profits, proceeds, products, revenues
      and
      other incomes from or attributable to the Hydrocarbon Interests; (f) all
      tenements, hereditaments, appurtenances and Properties in any manner
      appertaining, belonging, affixed or incidental to the Hydrocarbon Interests
      and
      (g) all Properties, rights, titles, interests and estates described or referred
      to above, including any and all Property, real or personal, now owned or
      hereinafter acquired and situated upon, used, held for use or useful in
      connection with the operating, working or development of any of such Hydrocarbon
      Interests or Property (excluding drilling rigs, automotive equipment, rental
      equipment or other personal Property which may be on such premises for the
      purpose of drilling a well or for other similar temporary uses) and including
      any and all oil wells, gas wells, injection wells or other wells, buildings,
      structures, fuel separators, liquid extraction plants, plant compressors, pumps,
      pumping units, field gathering systems, tanks and tank batteries, fixtures,
      valves, fittings, machinery and parts, engines, boilers, meters, apparatus,
      equipment, appliances, tools, implements, cables, wires, towers, casing, tubing
      and rods, surface leases, rights-of-way, easements and servitudes together
      with
      all additions, substitutions, replacements, accessions and attachments to any
      and all of the foregoing.

     

    “Operating
      Agreement”
means
      the Amended and Restated Operating Agreement of the Parent Guarantor dated
      as of
      December 18, 2006, as the same may be amended in accordance with Section
      9.18.

     

    “Other
      Taxes”
means
      any and all present or future stamp or documentary taxes or any other excise
      or
      Property taxes, charges or similar levies arising from any payment made
      hereunder or from the execution, delivery or enforcement of, or otherwise with
      respect to, this Agreement and any other Loan Document.

     

    “Participant”
has
      the
      meaning set forth in Section
      12.04(c)(i).

     

    “Partnerships”
means
      the partnerships listed on Schedule 7.15 and any other partnerships which are
      engaged principally in the acquisition and development of Oil and Gas Properties
      as may be wholly or partially owned, directly or indirectly, by any Loan Party
      from time to time hereafter.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    “PBGC”
means
      the Pension Benefit Guaranty Corporation, or any successor thereto.

     

    “Person”
means
      any natural person, corporation, limited liability company, trust, joint
      venture, association, company, partnership, Governmental Authority or other
      entity.

     

    “Plan”
means
      any employee pension benefit plan, as defined in section 3(2) of ERISA, which
      (a) is currently or hereafter sponsored, maintained or contributed to by the
      Parent Guarantor, a Subsidiary or an ERISA Affiliate or (b) was at any time
      during the six calendar years preceding the date hereof, sponsored, maintained
      or contributed to by the Parent Guarantor or a Subsidiary or an ERISA
      Affiliate.

     

    “Prime
      Rate”
means
      the rate of interest per annum publicly announced from time to time by
      JPMorgan as
      its
      prime rate in effect at its principal office in New York, New York; each change
      in the Prime Rate shall be effective from and including the date such change
      is
      publicly announced as being effective. Such rate is set by the Administrative
      Agent as a general reference rate of interest, taking into account such factors
      as the Administrative Agent may deem appropriate; it being understood that
      many
      of the Administrative Agent’s commercial or other loans are priced in relation
      to such rate, that it is not necessarily the lowest or best rate actually
      charged to any customer and that the Administrative Agent may make various
      commercial or other loans at rates of interest having no relationship to such
      rate.

     

    “Property”
means
      any interest in any kind of property or asset, whether real, personal or mixed,
      or tangible or intangible, including, without limitation, cash, securities,
      accounts and contract rights.

     

    “Proposed
      Borrowing Base”
has
      the
      meaning assigned to such term in Section
      2.07(c)(i).

     

    “Proposed
      Borrowing Base Notice”
has
      the
      meaning assigned to such term in Section
      2.07(c)(ii).

     

    “Redemption”
means
      with respect to any Debt, the repurchase, redemption, prepayment, repayment
      or
      defeasance (or the segregation of funds with respect to any of the foregoing)
      of
      such Debt. “Redeem”
has
      the
      correlative meaning thereto.

     

    “Redetermination
      Date”
means,
      with respect to any Scheduled Redetermination or any Interim Redetermination,
      the date that the redetermined Borrowing Base related thereto becomes effective
      pursuant to Section
      2.07(d).

     

    “Register”
has
      the
      meaning assigned such term in Section
      12.04(b)(iv).

     

    “Regulation
      D”
means
      Regulation D of the Board, as the same may be amended, supplemented or replaced
      from time to time.

     

    “Related
      Parties”
means,
      with respect to any specified Person, such Person’s Affiliates and the
      respective directors, officers, employees, agents and advisors (including
      attorneys, accountants and experts) of such Person and such Person’s
      Affiliates.

     

    “Release”
means
      any depositing, spilling, leaking, pumping, pouring, placing, emitting,
      discarding, abandoning, emptying, discharging, migrating, injecting, escaping,
      leaching, dumping, or disposing.

     

    “Remedial
      Work”
has
      the
      meaning assigned such term in Section
      8.10.

     

    “Reserve
      Report”
means
      the Initial Reserve Report and a report, in form and substance reasonably
      satisfactory to the Administrative Agent, setting forth, as of each December
      31st or June 30th (or such other date in the event of an Interim
      Redetermination) the oil and gas reserves attributable to the Oil and Gas
      Properties of the Borrower and the Subsidiaries (or the Borrower’s proportionate
      share of such Oil and Gas Properties in the case of the Partnerships), together
      with a projection of the rate of production and future net income, taxes,
      operating expenses and capital expenditures with respect thereto as of such
      date,
      consistent with SEC reporting requirements at the time, together with a
      supplement indicating future net income based
      upon the Administrative Agent’s usual and customary pricing assumptions for oil
      and gas loans then in effect, in each case reflecting Swap Agreements in place
      with respect to such production. Each Reserve Report shall include a report
      on a
      well by well basis reflecting the working and revenue interests for the Borrower
      and each Guarantor, and the net working interest and net revenue interests
      for
      each Partnership and such other information and in such form as may be
      reasonably requested by the Administrative Agent.

     

    
      
        
        

      

      
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    “Responsible
      Officer”
means,
      as to any Person, the Chief Executive Officer, the Chief Operating Officer,
      the
      President, any Financial Officer or any Vice President of such Person. Unless
      otherwise specified, all references to a Responsible Officer herein shall mean
      a
      Responsible Officer of the Parent Guarantor.

     

    “Restricted
      Payment”
means
      any dividend or other distribution (whether in cash, securities or other
      Property) with respect to any Equity Interests in any Person, or any payment
      (whether in cash, securities or other Property), including any sinking fund
      or
      similar deposit, on account of the purchase, redemption, retirement,
      acquisition, cancellation or termination of any such Equity Interests or any
      option, warrant or other right to acquire any such Equity
      Interests.

     

    “Revolving
      Credit Exposure”
means,
      with respect to any Lender at any time, the sum of the outstanding principal
      amount of such Lender’s Loans and its LC Exposure at such time.

     

    “Scheduled
      Redetermination”
has
      the
      meaning assigned such term in Section
      2.07(b).

     

    “Scheduled
      Redetermination Date”
means
      the date on which a Borrowing Base that has been redetermined pursuant to a
      Scheduled Redetermination becomes effective as provided in Section
      2.07(d).

     

    “SEC”
means
      the U.S. Securities and Exchange Commission or any successor Governmental
      Authority.

     

    “Security
      Instruments”
means
      the Guaranty Agreement, mortgages, deeds of trust and other agreements,
      instruments or certificates described or referred to in Exhibit F-1, and any
      and
      all other agreements, instruments or certificates now or hereafter executed
      and
      delivered by any Loan Party or any other Person (other than Swap Agreements
      or
      Specified Cash Management Agreements with the Lenders or any Affiliate of a
      Lender or participation or similar agreements between any Lender and any other
      lender or creditor with respect to any Indebtedness pursuant to this Agreement)
      in connection with, or as security for the payment or performance of the
      Indebtedness, the Notes, if any, this Agreement, or reimbursement obligations
      under the Letters of Credit, as such agreements may be amended, modified,
      supplemented or restated from time to time.

     

    “Senior
      Notes”
means
      any unsecured senior or senior subordinated notes issued by the Parent Guarantor
      or the Borrower under Section 9.02(h) and any guarantees thereof by the Borrower
      or a Guarantor.

     

    “Significant
      Subsidiary”
means
      any Subsidiary of the Borrower (together with the Subsidiaries of such
      Subsidiary) which has total assets and liabilities in excess of
      $15,000,000.

     

    
      
        
        

      

      
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    “Solvent”
means
      when used with respect to any Person, means that, as of any date of
      determination, (a) the amount of the “present fair saleable value” of the assets
      of such Person will, as of such date, exceed the amount of all “liabilities of
      such Person, contingent or otherwise”, as of such date, as such quoted terms are
      determined in accordance with applicable federal and state laws governing
      determinations of the insolvency of debtors, (b) the present fair saleable
      value
      of the assets of such Person will, as of such date, be greater than the amount
      that will be required to pay the liability of such Person on its debts as such
      debts become absolute and matured, (c) such Person will not have, as of such
      date, an unreasonably small amount of capital with which to conduct its
      business, and (d) such Person will be able to pay its debts as they mature.
      

     

    “S&P”
means
      Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies,
      Inc., and any successor thereto that is a nationally recognized rating
      agency.

     

    “Specified
      Cash Management Agreement”
means
      any agreement providing for treasury, depositary, purchasing card or cash
      management services, including in connection with any automated clearing house
      transfers of funds or any similar transactions between the Borrower or any
      Guarantor and any Lender or Affiliate thereof. 

     

    “Statutory
      Reserve Rate”
means
      a
      fraction (expressed as a decimal), the numerator of which is the number one
      and
      the denominator of which is the number one minus the aggregate of the maximum
      reserve percentages (including any marginal, special, emergency or supplemental
      reserves) expressed as a decimal established by the Board to which the
      Administrative Agent is subject for eurocurrency funding (currently referred
      to
      as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve
      percentages shall include those imposed pursuant to such Regulation D.
      Eurodollar Loans shall be deemed to constitute eurocurrency funding and to
      be
      subject to such reserve requirements without benefit of or credit for proration,
      exemptions or offsets that may be available from time to time to any Lender
      under such Regulation D or any comparable regulation. The Statutory Reserve
      Rate
      shall be adjusted automatically on and as of the effective date of any change
      in
      any reserve percentage.

     

    “Subsidiary”
means:
      (a) any Person of which at least a majority of the outstanding Equity Interests
      having by the terms thereof ordinary voting power to elect a majority of the
      board of directors, manager or other governing body of such Person (irrespective
      of whether or not at the time Equity Interests of any other class or classes
      of
      such Person shall have or might have voting power by reason of the happening
      of
      any contingency) is at the time directly or indirectly owned or controlled
      by
      the Parent Guarantor and/or one or more of its Subsidiaries, (b) any partnership
      of which the Parent Guarantor or any of its Subsidiaries is a general partner
      and (c) without duplication of clause (b), each Partnership. Unless otherwise
      indicated herein, each reference to the term “Subsidiary”
shall
      mean a Subsidiary of the Parent Guarantor.

     

    “Super-Majority
      Lenders”
means,
      at any time while no Loans or LC Exposure is outstanding, Lenders having at
      least sixty-six and two-thirds percent (66-2⁄3%) of the Aggregate Maximum Credit
      Amounts; and at any time while any Loans or LC Exposure is outstanding, Lenders
      holding at least sixty-six and two-thirds percent (66-2⁄3%) of the outstanding
      aggregate principal amount of the Loans or participation interests in Letters
      of
      Credit (without regard to any sale by a Lender of a participation in any Loan
      under Section
      12.04(c)).

     

    “Swap
      Agreement”
means
      any agreement with respect to any swap, forward, future or derivative
      transaction or option or similar agreement, whether exchange traded,
“over-the-counter” or otherwise, involving, or settled by reference to, one or
      more rates, currencies, commodities, equity or debt instruments or securities,
      or economic, financial or pricing indices or measures of economic, financial
      or
      pricing risk or value or any similar transaction or any combination of these
      transactions.

     

    
      
        
        

      

      
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    “Synthetic
      Leases”
means,
      in respect of any Person, all leases which shall have been, or should have
      been,
      in accordance with GAAP, treated as operating leases on the financial statements
      of the Person liable (whether contingently or otherwise) for the payment of
      rent
      thereunder and which were properly treated as indebtedness for borrowed money
      for purposes of U.S. federal income taxes, if the lessee in respect thereof
      is
      obligated to either purchase for an amount in excess of, or pay upon early
      termination an amount in excess of, 80% of the residual value of the Property
      subject to such operating lease upon expiration or early termination of such
      lease.

     

    “Target”
means
      DTE Gas & Oil Company, a Michigan corporation.

     

    “Termination
      Date”
means
      the earlier of the Maturity Date and the date of termination of the
      Commitments.

     

    “Total
      Debt”
means,
      at any date, all Debt of the Parent Guarantor and the Consolidated Subsidiaries
      on a consolidated basis other than (i) contingent obligations in respect of
      Debt
      described in clause (b) and (ii) Debt described in clause (c) of the definition
      of “Debt”. For the avoidance of doubt, “Total Debt” shall not include “asset
      retirement obligations” as such term is used in FASB Statement 143 to the extent
      such term relates to the plugging and abandonment of wells.

     

    “Transactions”
means,
      with respect to (a) the Borrower, the execution, delivery and performance by
      the
      Borrower of this Agreement and each other Loan Document to which it is a party,
      the borrowing of Loans, the use of the proceeds thereof and the issuance of
      Letters of Credit hereunder, and the grant of Liens by the Borrower on Mortgaged
      Properties pursuant to the Security Instruments and (b) each Guarantor, the
      execution, delivery and performance by such Guarantor of each Loan Document
      and
      each Acquisition Document to which it is a party, consummation of the
      Acquisition, the guaranteeing of the Indebtedness and the other obligations
      under the Guaranty Agreement by such Guarantor and such Guarantor’s grant of the
      security interests and provision of collateral thereunder, and the grant of
      Liens by such Guarantor on Mortgaged Properties pursuant to the Security
      Instruments.

     

    “Transferee”
means
      any Assignee or Participant.

     

    “Type”,
      when
      used in reference to any Loan or Borrowing, refers to whether the rate of
      interest on such Loan, or on the Loans comprising such Borrowing, is determined
      by reference to the Alternate Base Rate or the Adjusted LIBO Rate.

     

    “Unrestricted
      Subsidiary”
means
      any Subsidiary designated as such on Schedule 7.15 or which the Borrower has
      designated in writing to the Administrative Agent to be an Unrestricted
      Subsidiary pursuant to Section
      9.19.

     

    “Wholly-Owned
      Subsidiary”
means
      any Subsidiary of which all of the outstanding Equity Interests (other than
      any
      directors’ qualifying shares mandated by applicable law), on a fully-diluted
      basis, are owned by the Parent Guarantor or one or more of the Wholly-Owned
      Subsidiaries or by the Parent Guarantor and one or more of the Wholly-Owned
      Subsidiaries.

     

    Section
      1.03 Types
      of Loans and Borrowings.
      For
      purposes of this Agreement, Loans and Borrowings, respectively, may be
      classified and referred to by Type (e.g.,
      a
“Eurodollar
      Loan”
or
      a
“Eurodollar
      Borrowing”).

     

    Section
      1.04 Terms
      Generally;
      Rules of Construction.
      The
      definitions of terms herein shall apply equally to the singular and plural
      forms
      of the terms defined. Whenever the context may require, any pronoun shall
      include the corresponding masculine, feminine and neuter forms. The words
“include”, “includes” and “including” shall be deemed to be followed by the
      phrase “without limitation”. The word “will” shall be construed to have the same
      meaning and effect as the word “shall”. Unless the context requires otherwise
      (a)
      any
      definition of or reference to any agreement, instrument or other document herein
      shall be construed as referring to such agreement, instrument or other document
      as from time to time amended, supplemented or otherwise modified (subject to
      any
      restrictions on such amendments, supplements or modifications set forth herein),
      (b)
      any
      reference herein to any law shall be construed as referring to such law as
      amended, modified, codified or reenacted, in whole or in part, and in effect
      from time to time, (c)
      any
      reference herein to any Person shall be construed to include such Person’s
      successors and assigns (subject to the restrictions contained herein),
      (d)
      the
      words “herein”, “hereof” and “hereunder”, and words of similar import, shall be
      construed to refer to this Agreement in its entirety and not to any particular
      provision hereof, (e)
      with
      respect to the determination of any time period, the word “from” means “from and
      including” and the word “to” means “to and including” and (f)
      any
      reference herein to Articles, Sections, Annexes, Exhibits and Schedules shall
      be
      construed to refer to Articles and Sections of, and Annexes, Exhibits and
      Schedules to, this Agreement. 

     

    
      
        
        

      

      
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    Section
      1.05 Accounting
      Terms and Determinations.
      Unless
      otherwise specified herein, all terms of an accounting or financial nature
      shall
      be construed in accordance with GAAP, as in effect from time to time;
provided
      that, if
      the Borrower or the Parent Guarantor notifies the Administrative Agent that
      the
      Borrower or the Parent Guarantor requests an amendment to any provision hereof
      to eliminate the effect of any change occurring after the date hereof in GAAP
      or
      in the application thereof on the operation of such provision (or if the
      Administrative Agent notifies the Borrower or the Parent Guarantor that the
      Required Lenders request an amendment to any provision hereof for such purpose),
      regardless of whether any such notice is given before or after such change
      in
      GAAP or in the application thereof, then such provision shall be interpreted
      on
      the basis of GAAP as in effect and applied immediately before such change shall
      have become effective until such notice shall have been withdrawn or such
      provision amended in accordance herewith.

     

    ARTICLE
      II

    The
      Credits

     

    Section
      2.01 Commitments.
      Subject
      to the terms and conditions set forth herein, each Lender agrees to make Loans
      to the Borrower during the Availability Period in an aggregate principal amount
      that will not result in (a)
      such
      Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment
      and (b)
      the
      total Revolving Credit Exposures exceeding the total Commitments. Within the
      foregoing limits and subject to the terms and conditions set forth herein,
      the
      Borrower may borrow, repay and reborrow the Loans.

     

    Section
      2.02 Loans
      and Borrowings.

     

    (a) Borrowings;
      Several Obligations.
      Each
      Loan shall be made as part of a Borrowing consisting of Loans made by the
      Lenders ratably in accordance with their respective Commitments. The failure
      of
      any Lender to make any Loan required to be made by it shall not relieve any
      other Lender of its obligations hereunder; provided that the Commitments are
      several and no Lender shall be responsible for any other Lender’s failure to
      make Loans as required.

     

    (b) Types
      of Loans.
      Subject
      to Section
      3.03,
      each
      Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the
      Borrower may request in accordance herewith. Each Lender at its option may
      make
      any Eurodollar Loan by causing any domestic or foreign branch or Affiliate
      of
      such Lender to make such Loan; provided that any exercise of such option shall
      not affect the obligation of the Borrower to repay such Loan in accordance
      with
      the terms of this Agreement.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    (c) Minimum
      Amounts; Limitation on Number of Borrowings.
      At the
      commencement of each Interest Period for any Eurodollar Borrowing, such
      Borrowing shall be in an aggregate amount that is an integral multiple of
      $1,000,000 and not less than $1,000,000. At the time that each ABR Borrowing
      is
      made, such Borrowing shall be in an aggregate amount that is an integral
      multiple of $1,000,000 and not less than $1,000,000; provided that an ABR
      Borrowing may be in an aggregate amount that is equal to the entire unused
      balance of the total Commitments. Borrowings of more than one Type may be
      outstanding at the same time; provided that there shall not at any time be
      more
      than a total of fifteen (15) Eurodollar Borrowings outstanding. Notwithstanding
      any other provision of this Agreement, the Borrower shall not be entitled to
      request, or to elect to convert or continue, any Borrowing if the Interest
      Period requested with respect thereto would end after
      the
      Maturity Date.

     

    (d) Notes.
      If a
      Lender shall make a written request to the Administrative Agent and the Borrower
      to have its Loans evidenced by a promissory note, then the Borrower shall
      execute and deliver a single promissory note of the Borrower in substantially
      the form of Exhibit A, payable to the order of such Lender in a principal amount
      equal to its Maximum Credit Amount as then in effect, and otherwise duly
      completed. The date, amount, Type, interest rate and, if applicable, Interest
      Period of each Loan made by each Lender, and all payments made on account of
      the
      principal thereof, may be recorded by such Lender on its books for its Note,
      and, prior to any transfer, may be endorsed by such Lender on a schedule
      attached to such Note or any continuation thereof or on any separate record
      maintained by such Lender; provided that the failure to make any such notation
      or to attach a schedule shall not affect any Lender’s or the Borrower’s rights
      or obligations in respect of such Loans or affect the validity of such transfer
      by any Lender of its Note.

     

    Section
      2.03 Requests
      for Borrowings.
      To
      request a Borrowing, the Borrower shall notify the Administrative Agent of
      such
      request by telephone or by written Borrowing Request in substantially the form
      of Exhibit B and signed by the Parent Guarantor and the Borrower (a
“written
      Borrowing Request”):
      (a)
      in the
      case of a Eurodollar Borrowing, not later than 12:00 noon, New York, New York
      time, three Business Days before the date of the proposed Borrowing or
      (b)
      in the
      case of an ABR Borrowing, not later than 12:00 noon, New York, New York time,
      one Business Day prior to the date of the proposed Borrowing. Each telephonic
      and written Borrowing Request shall be irrevocable and each telephonic Borrowing
      Request shall be confirmed promptly by hand delivery or telecopy to the
      Administrative Agent of a written Borrowing Request. Each such telephonic and
      written Borrowing Request shall specify the following information in compliance
      with Section
      2.02:

     

    (i) the
      aggregate amount of the requested Borrowing;

     

    (ii) the
      date
      of such Borrowing, which shall be a Business Day;

     

    (iii) whether
      such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

     

    (iv) in
      the
      case of a Eurodollar Borrowing, the initial Interest Period to be applicable
      thereto, which shall be a period contemplated by the definition of the term
      “Interest Period”;

     

    (v) the
      amount of the then effective Borrowing Base and the then effective Conforming
      Borrowing Base, the current total Revolving Credit Exposures (without regard
      to
      the requested Borrowing) and the pro
      forma
      total
      Revolving Credit Exposures (giving effect to the requested Borrowing);
      and

     

    (vi) the
      location and number of the Borrower’s account to which funds are to be
      disbursed, which shall comply with the requirements of Section
      2.05.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    After
      the
      Borrowing Base Equalization Date, information regarding the Conforming Borrowing
      Base may be omitted from subsequent Borrowing Requests.

     

    If
      no
      election as to the Type of Borrowing is specified, then the requested Borrowing
      shall be an ABR Borrowing. If no Interest Period is specified with respect
      to
      any requested Eurodollar Borrowing, then the Borrower shall be deemed to have
      selected an Interest Period of one month’s duration. Each Borrowing Request
      shall constitute a representation that the amount of the requested Borrowing
      shall not cause the total Revolving Credit Exposures to exceed the total
      Commitments (i.e.,
      the
      lesser of the Aggregate Maximum Credit Amounts and the then effective Borrowing
      Base).

     

    Promptly
      following receipt of a Borrowing Request in accordance with this Section
      2.03,
      the
      Administrative Agent shall advise each Lender of the details thereof and of
      the
      amount of such Lender’s Loan to be made as part of the requested
      Borrowing.

     

    Section
      2.04 Interest
      Elections.

     

    (a) Conversion
      and Continuance.
      Each
      Borrowing initially shall be of the Type specified in the applicable Borrowing
      Request and, in the case of a Eurodollar Borrowing, shall have an initial
      Interest Period as specified in such Borrowing Request. Thereafter, the Borrower
      may elect to convert such Borrowing to a different Type or to continue such
      Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods
      therefor, all as provided in this Section
      2.04.
      The
      Borrower may elect different options with respect to different portions of
      the
      affected Borrowing, in which case each such portion shall be allocated ratably
      among the Lenders holding the Loans comprising such Borrowing, and the Loans
      comprising each such portion shall be considered a separate
      Borrowing.

     

    (b) Interest
      Election Requests.
      To make
      an election pursuant to this Section
      2.04,
      the
      Borrower shall notify the Administrative Agent of such election by telephone
      or
      by a written Interest Election Request in substantially the form of Exhibit
      C
      and signed by the Parent Guarantor and the Borrower (a “written
      Interest Election Request”)
      by the
      time that a Borrowing Request would be required under Section
      2.03
      if the
      Borrower were requesting a Borrowing of the Type resulting from such election
      to
      be made on the effective date of such election. Each telephonic and written
      Interest Election Request shall be irrevocable and each telephonic Interest
      Election Request shall be confirmed promptly by hand delivery or telecopy to
      the
      Administrative Agent.

     

    (c) Information
      in Interest Election Requests.
      Each
      telephonic and written Interest Election Request shall specify the following
      information in compliance with Section
      2.02:

     

    (i) the
      Borrowing to which such Interest Election Request applies and, if different
      options are being elected with respect to different portions thereof, the
      portions thereof to be allocated to each resulting Borrowing (in which case
      the
      information to be specified pursuant to Section
      2.04(c)(iii)
      and
(iv)
      shall be
      specified for each resulting Borrowing);

     

    (ii) the
      effective date of the election made pursuant to such Interest Election Request,
      which shall be a Business Day;

     

    (iii) whether
      the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;
      and

     

    (iv) if
      the
      resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
      applicable thereto after giving effect to such election, which shall be a period
      contemplated by the definition of the term “Interest Period”.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    If
      any
      such Interest Election Request requests a Eurodollar Borrowing but does not
      specify an Interest Period, then the Borrower shall be deemed to have selected
      an Interest Period of one month’s duration.

     

    (d) Notice
      to Lenders by the Administrative Agent.
      Promptly following receipt of an Interest Election Request, the Administrative
      Agent shall advise each Lender of the details thereof and of such Lender’s
      portion of each resulting Borrowing.

     

    (e) Effect
      of Failure to Deliver Timely Interest Election Request and Events of Default
      on
      Interest Election.
      If the
      Borrower fails to deliver a timely Interest Election Request with respect to
      a
      Eurodollar Borrowing prior to the end of the Interest Period applicable thereto,
      then, unless such Borrowing is repaid as provided herein, at the end of such
      Interest Period such Borrowing shall be converted to an ABR Borrowing.
      Notwithstanding any contrary provision hereof, if an Event of Default has
      occurred and is continuing: (i)
      no
      outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing
      (and any Interest Election Request that requests the conversion of any Borrowing
      to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be
      ineffective) and (ii)
      unless
      repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at
      the
      end of the Interest Period applicable thereto.

     

    Section
      2.05 Funding
      of Borrowings.

     

    (a) Funding
      by Lenders.
      Each
      Lender shall make each Loan to be made by it hereunder on the proposed date
      thereof by wire transfer of immediately available funds by 1:00 p.m., New York,
      New York time, to the account of the Administrative Agent most recently
      designated by it for such purpose by notice to the Lenders. The Administrative
      Agent will make such Loans available to the Borrower by promptly crediting
      the
      amounts so received, in like funds, to an account designated by the Borrower
      in
      the applicable Borrowing Request.

     

    (b) Presumption
      of Funding by the Lenders.
      Unless
      the Administrative Agent shall have received notice from a Lender prior to
      the
      proposed date of any Borrowing that such Lender will not make available to
      the
      Administrative Agent such Lender’s share of such Borrowing, the Administrative
      Agent may assume that such Lender has made such share available on such date
      in
      accordance with Section
      2.05(a)
      and may,
      in reliance upon such assumption, make available to the Borrower a corresponding
      amount. In such event, if a Lender has not in fact made its share of the
      applicable Borrowing available to the Administrative Agent, then the applicable
      Lender and the Borrower severally agree to pay to the Administrative Agent
      forthwith on demand such corresponding amount with interest thereon, for each
      day from and including the date such amount is made available to the Borrower
      to
      but excluding the date of payment to the Administrative Agent, at (i)
      in the
      case of such Lender, the greater of the Federal Funds Effective Rate and a
      rate
      determined by the Administrative Agent in accordance with banking industry
      rules
      on interbank compensation or (ii)
      in the
      case of the Borrower, the interest rate applicable to ABR Loans. If such Lender
      pays such amount to the Administrative Agent, then such amount shall constitute
      such Lender’s Loan included in such Borrowing.

     

    Section
      2.06 Termination,
      Reduction and Increase of Aggregate Maximum Credit Amounts.

     

    (a) Scheduled
      Termination of Commitments.
      Unless
      previously terminated, the Commitments shall terminate on the Maturity Date.
      If
      at any time the Aggregate Maximum Credit Amounts or the Borrowing Base is
      terminated or reduced to zero, then the Commitments shall terminate on the
      effective date of such termination or reduction.

     

    (b) Optional
      Termination and Reduction of Aggregate Credit Amounts.

     

    (i) The
      Borrower may at any time terminate, or from time to time reduce, the Aggregate
      Maximum Credit Amounts; provided that (A)
      each
      reduction of the Aggregate Maximum Credit Amounts shall be in an amount that
      is
      an integral multiple of $1,000,000 and not less than $5,000,000 and (B)
      the
      Borrower shall not terminate or reduce the Aggregate Maximum Credit Amounts
      if,
      after giving effect to any concurrent prepayment of the Loans in accordance
      with
Section
      3.04(c),
      the
      total Revolving Credit Exposures would exceed the total
      Commitments.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (ii) The
      Borrower shall notify the Administrative Agent of any election to terminate
      or
      reduce the Aggregate Maximum Credit Amounts under Section
      2.06(b)(i)
      at least
      three Business Days prior to the effective date of such termination or
      reduction, specifying such election and the effective date thereof. Promptly
      following receipt of any notice, the Administrative Agent shall advise the
      Lenders of the contents thereof. Each notice delivered by the Borrower pursuant
      to this Section
      2.06(b)(ii)
      shall be
      irrevocable. Any termination or reduction of the Aggregate Maximum Credit
      Amounts shall be permanent and may not be reinstated except pursuant to
Section
      2.06(c).
      Each
      reduction of the Aggregate Maximum Credit Amounts shall be made ratably among
      the Lenders in accordance with each Lender’s Applicable Percentage.

     

    (c) Optional
      Increase in Aggregate Maximum Credit Amounts.

     

    (i) Subject
      to the conditions set forth in Section
      2.06(c)(ii),
      the
      Borrower may increase the Aggregate Maximum Credit Amounts then in effect with
      the prior written consent of the Administrative Agent by increasing the Maximum
      Credit Amount of a Lender or by causing a Person that at such time is not a
      Lender to become a Lender (an “Additional
      Lender”).

     

    (ii) Any
      increase in the Aggregate Maximum Credit Amounts shall be subject to the
      following additional conditions:

     

    (A) such
      increase shall not be less than $50,000,000 unless the Administrative Agent
      otherwise consents, and no such increase shall be permitted if after giving
      effect thereto the Aggregate Maximum Credit Amounts would exceed
      $1,050,000,000;

     

    (B) no
      Default shall have occurred and be continuing at the effective date of such
      increase or would result after giving effect to such increase;

     

    (C) no
      Lender’s Maximum Credit Amount may be increased without the consent of such
      Lender
      (such
      consent to be granted in such Lender’s sole discretion);

     

    (D) if
      the
      Borrower elects to increase the Aggregate Maximum Credit Amounts by increasing
      the Maximum Credit Amount of a Lender, the Parent Guarantor, the Borrower and
      such Lender shall execute and deliver to the Administrative Agent a certificate
      substantially in the form of Exhibit H-1 (a “Maximum
      Credit Amount Increase Certificate”);
      and

     

    (E) if
      the
      Borrower elects to increase the Aggregate Maximum Credit Amounts by causing
      an
      Additional Lender to become a party to this Agreement, then the Parent
      Guarantor, the Borrower and such Additional Lender shall execute and deliver
      to
      the Administrative Agent a certificate substantially in the form of Exhibit
      H-2
      (an “Additional
      Lender Certificate”),
      together with an Administrative Questionnaire.

     

    (iii) Any
      such
      Additional Lender shall be deemed to be a party in all respects to this
      Agreement and any other Loan Documents to which the Lenders are a party, and
      upon the effective date set forth in such Additional Lender Certificate or
      Maximum Credit Amount Increase Certificate, any such Lender party to a Maximum
      Credit Amount Increase Certificate or an Additional Lender Certificate shall
      purchase a pro rata portion of the outstanding Revolving Credit Exposure of
      each
      of the current Lenders such that the Lenders (including any Additional Lender,
      if applicable) shall have the appropriate portion of the aggregate outstanding
      Revolving Credit Exposure (based in each case of such Lender’s Applicable
      Percentage, as revised pursuant to this Section).

     

    
      
        
        

      

      
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    Section
      2.07 Borrowing
      Base.

     

    (a) Initial
      Borrowing Base and Initial Conforming Borrowing Base.
      For the
      period from and including the Effective Date to but excluding the first
      Redetermination Date, the amount of the Borrowing Base shall be $850,000,000
      and the amount of the Conforming Borrowing Base shall be $685,000,000; provided
      that for the period from the Effective Date until the Borrowing Base
      Equalization Date the Borrowing Base shall not be less than $850,000,000.
      Notwithstanding the foregoing, the Borrowing Base and the Conforming Borrowing
      Base may be subject to further adjustments from time to time pursuant to
Section
      2.07(f),
      Section
      8.13(c)
      or
Section
      9.11(d).
      On
      the Borrowing Base Equalization Date, the Borrowing Base shall be reduced to
      an
      amount equal to the Conforming Borrowing Base. 

     

    (b) Scheduled
      and Interim Redeterminations.
      The
      Borrowing Base and, until the Borrowing Base Equalization Date, the Conforming
      Borrowing Base, shall be redetermined semi-annually
      in accordance with this Section
      2.07
      (a
“Scheduled
      Redetermination”),
      and,
      subject to Section
      2.07(d),
      such
      redetermined amounts shall become effective and applicable to the Borrower,
      the
      Agents, the Issuing Bank and the Lenders on April 1st and October 1st of
      each
      year,
      commencing October 1,
      2007.
      In
      addition, the Borrower may, by notifying the Administrative Agent thereof,
      and
      the Administrative Agent may, at the direction of the Super-Majority Lenders,
      by
      notifying the Borrower thereof, one time during each six month period, elect
      any
      of the foregoing amounts to be redetermined between Scheduled Redeterminations
      (an “Interim
      Redetermination”)
      in
      accordance with this Section
      2.07.

     

    (c) Scheduled
      and Interim Redetermination Procedure.

     

    (i) Each
      Scheduled Redetermination and each Interim Redetermination shall be effectuated
      as follows: Upon receipt by the Administrative Agent of (A)
      the
      Reserve Report and the certificate required to be delivered by the Borrower
      to
      the Administrative Agent, in the case of a Scheduled Redetermination, pursuant
      to Section
      8.12(a)
      and
(c),
      and, in
      the case of an Interim Redetermination, pursuant to Section
      8.12(b)
      and
(c),
      and
(B)
      such
      other reports, data and supplemental information, including, without limitation,
      the information provided pursuant to Section
      8.12(c),
      as may,
      from time to time, be reasonably requested by the Super-Majority Lenders (the
      Reserve Report, such certificate and such other reports, data and supplemental
      information being the “Engineering
      Reports”),
      the
      Administrative Agent shall evaluate the information contained in the Engineering
      Reports and shall, in good faith, propose a new Borrowing Base, which prior
      to
      the Borrowing Base Equalization Date shall further specify a new Conforming
      Borrowing Base (all such amounts being the “Proposed
      Borrowing Base”)
      based
      upon such information and such other information (including, without limitation,
      the status of title information with respect to the Oil and Gas Properties
      as
      described in the Engineering Reports and the existence of any other Debt) as
      the
      Administrative Agent deems appropriate in its sole discretion and consistent
      with its normal oil and gas lending criteria as it exists at the particular
      time. 

     

    (ii) The
      Administrative Agent shall notify the Borrower and the Lenders of the Proposed
      Borrowing Base (the “Proposed
      Borrowing Base Notice”):

     

    (A) in
      the
      case of a Scheduled Redetermination (1)
      if the
      Administrative Agent shall have received the Engineering Reports required to
      be
      delivered by the Borrower pursuant to Section
      8.12(a)
      and
(c)
      in a
      timely and complete manner, then on or before the March 15th and September
      15th
      of such year following the date of delivery or (2)
      if the
      Administrative Agent shall not have received the Engineering Reports required
      to
      be delivered by the Borrower pursuant to Section
      8.12(a)
      and
(c)
      in a
      timely and complete manner, then promptly after the Administrative Agent has
      received complete Engineering Reports from the Borrower and has had a reasonable
      opportunity to determine the Proposed Borrowing Base in accordance with
Section
      2.07(c)(i);
      and

     

    
      
        
        

      

      
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    (B) in
      the
      case of an Interim Redetermination, promptly, and in any event, within fifteen
      (15) days after the Administrative Agent has received the required Engineering
      Reports.

     

    (iii) Any
      Proposed Borrowing Base that would increase the Borrowing Base (and prior to
      the
      Borrowing Base Equalization Date, the Conforming Borrowing Base) then in effect
      must be approved or deemed to have been approved by all of the Lenders as
      provided in this Section
      2.07(c)(iii);
      and any
      Proposed Borrowing Base that would decrease or maintain the Borrowing Base
      (and
      prior to the Borrowing Base Equalization Date, the Conforming Borrowing Base)
      then in effect must be approved or be deemed to have been approved by the
      Super-Majority Lenders as provided in this Section
      2.07(c)(iii).
      Such
      decisions will be made by each Lender based upon such criteria as such Lender
      deems appropriate in its sole discretion and consistent with its normal oil
      and
      gas lending criteria as it exists at the particular time. Upon receipt of the
      Proposed Borrowing Base Notice, each Lender shall have fifteen (15) days to
      agree with the Proposed Borrowing Base or disagree with the Proposed Borrowing
      Base by proposing an alternate Borrowing Base (which proposal must prior to
      the
      Borrowing Base Equalization Date also propose a Conforming Borrowing Base).
      If
      at the end of such fifteen (15) days, any Lender has not communicated its
      approval or disapproval in writing to the Administrative Agent, such silence
      shall be deemed to be an approval of the Proposed Borrowing Base. If, at the
      end
      of such 15-day period, all of the Lenders, in the case of a Proposed Borrowing
      Base that would increase the Borrowing Base (and prior to the Borrowing Base
      Equalization Date, the Conforming Borrowing Base) then in effect, or the
      Super-Majority Lenders, in the case of a Proposed Borrowing Base that would
      decrease or maintain the Borrowing Base (and prior to the Borrowing Base
      Equalization Date, the Conforming Borrowing Base) then in effect, have approved
      or deemed to have approved, as aforesaid, then the Proposed Borrowing Base
      (and
      prior to the Borrowing Base Equalization Date, the Conforming Borrowing Base)
      shall become the new Borrowing Base and the new Conforming Borrowing Base,
      effective on the date specified in Section
      2.07(d).
      If,
      however, at the end of such 15-day period, all of the Lenders or the
      Super-Majority Lenders, as applicable, have not approved or deemed to have
      approved, as aforesaid, then the Administrative Agent shall poll the Lenders
      to
      ascertain the highest amount (which proposal must, prior to the Borrowing Base
      Equalization Date, also propose a Conforming Borrowing Base) then acceptable
      to
      all of the Lenders, or the Super-Majority Lenders in the case of an amount
      that
      would decrease or maintain the Borrowing Base (and prior to the Borrowing Base
      Equalization Date, the Conforming Borrowing Base), then in effect, for purposes
      of this Section
      2.07
      and such
      amount shall become the new Borrowing Base (and, prior to the Borrowing Base
      Equalization Date, the Conforming Borrowing Base), effective on the date
      specified in Section
      2.07(d).

     

    (d) Effectiveness
      of a Redetermined Borrowing Base.
      After a
      redetermined Borrowing Base (and prior to the Borrowing Base Equalization Date,
      the Conforming Borrowing Base) is approved or is deemed to have been approved
      by
      all of the Lenders or the Super-Majority Lenders, as applicable, pursuant to
      Section
      2.07(c)(iii),
      the
      Administrative Agent shall notify the Borrower and the Lenders (the
“New
      Borrowing Base Notice”),
      and
      such amount (or amounts, as applicable) shall become the new Borrowing Base
      (and
      prior to the Borrowing Base Equalization Date, the new Conforming Borrowing
      Base), effective and applicable to the Borrower, the Agents, the Issuing Bank
      and the Lenders:

     

    (i) in
      the
      case of a Scheduled Redetermination, (A)
      if the
      Administrative Agent shall have received the Engineering Reports required to
      be
      delivered by the Borrower pursuant to Section
      8.12(a)
      and
(c)
      in a
      timely and complete manner, then on the April 1st or October 1st, as applicable,
      following such notice, or (B)
      if the
      Administrative Agent shall not have received the Engineering Reports required
      to
      be delivered by the Borrower pursuant to Section
      8.12(a)
      and
(c)
      in a
      timely and complete manner, then on the Business Day next succeeding delivery
      of
      such notice; and

     

    
      
        
        

      

      
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    (ii) in
      the
      case of an Interim Redetermination, on the Business Day next succeeding delivery
      of such notice.

     

    (e) Such
      amount shall then become the Borrowing Base (and prior to the Borrowing Base
      Equalization Date, the Conforming Borrowing Base) until the next Scheduled
      Redetermination Date, the next Interim Redetermination Date or the next
      adjustment, to the extent applicable, under Section
      2.07(f),
      Section
      8.13(c)
      or
Section
      9.11,
      whichever occurs first. Notwithstanding the foregoing, no Scheduled
      Redetermination or Interim Redetermination shall become effective until the
      New
      Borrowing Base Notice related thereto is received by the Borrower.

     

    (f) Reduction
      of Borrowing Base Upon Issuance of Permitted Senior Notes.
      Notwithstanding anything to the contrary contained herein, upon the issuance
      of
      any Senior Notes in accordance with Section 9.02(h), the Borrowing Base and
      the
      Conforming Borrowing Base then in effect shall be reduced by an amount equal
      to
      the product of 0.25 multiplied by the stated principal amount of such Senior
      Notes (without regard to any initial issue discount), and the Borrowing Base
      and
      the Conforming Borrowing Base as so reduced shall become the new Borrowing
      Base
      and the new Conforming Base immediately upon the date of such issuance,
      effective and applicable to the Borrower, the Agents, the Issuing Bank and
      the
      Lenders on such date until the next redetermination or modification thereof
      hereunder;
      provided that if the date of such issuance constitutes the Borrowing Base
      Equalization Date, the Borrowing Base shall be reduced to an amount equal to
      the
      Conforming Borrowing Base (as in effect prior to such issuance) less the
      reduction required by this Section
      2.07(f).

     

    Section
      2.08 Letters
      of Credit.

     

    (a) General.
      Subject
      to the terms and conditions set forth herein, the Borrower may request the
      Issuing Bank to issue US dollar denominated Letters of Credit for its own
      account or for the account of the Parent Guarantor or any of its Subsidiaries,
      in a form reasonably acceptable to the Administrative Agent and the Issuing
      Bank, at any time and from time to time during the period from the Effective
      Date until the day which is five (5) Business Days prior to the end of the
      Availability Period. In the event of any inconsistency between the terms and
      conditions of this Agreement and the terms and conditions of any form of letter
      of credit application or other agreement submitted by the Borrower to, or
      entered into by the Borrower with, the Issuing Bank relating to any Letter
      of
      Credit, the terms and conditions of this Agreement shall control.

     

    (b) Notice
      of Issuance, Amendment, Renewal, Extension; Certain Conditions.
      To
      request the issuance of a Letter of Credit (or the amendment, renewal or
      extension of an outstanding Letter of Credit), the Borrower shall hand deliver
      or telecopy (or transmit by electronic communication, if arrangements for doing
      so have been approved by the Issuing Bank) to the Issuing Bank and the
      Administrative Agent (unless otherwise agreed by the Issuing Bank, not less
      than
      three (3) Business Days in advance of the requested date of issuance, amendment,
      renewal or extension) a notice:

     

    (i) requesting
      the issuance of a Letter of Credit or identifying the outstanding Letter of
      Credit to be amended, renewed or extended;

     

    
      
        
        

      

      
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    (ii) specifying
      the date of issuance, amendment, renewal or extension (which shall be a Business
      Day);

     

    (iii) specifying
      the date on which such Letter of Credit is to expire (which shall comply with
      Section
      2.08(c));

     

    (iv) specifying
      the amount of such Letter of Credit;

     

    (v) specifying
      the name and address of the beneficiary thereof and such other information
      as
      shall be necessary to prepare, amend, renew or extend such Letter of Credit;
      and

     

    (vi) specifying
      the amount of the then effective Borrowing Base and the current total Revolving
      Credit Exposures (without regard to the requested Letter of Credit or the
      requested amendment, renewal or extension of an outstanding Letter of Credit)
      and the pro
      forma
      total
      Revolving Credit Exposures (giving effect to the requested Letter of Credit
      or
      the requested amendment, renewal or extension of an outstanding Letter of
      Credit).

     

    Each
      notice shall constitute a representation that after giving effect to the
      requested issuance, amendment, renewal or extension, as applicable, (i) the
      LC
      Exposure shall not exceed the LC Commitment and (ii) the total Revolving Credit
      Exposures shall not exceed the total Commitments (i.e.,
      the
      lesser of the Aggregate Maximum Credit Amounts and the then effective Borrowing
      Base).

     

    If
      requested by the Issuing Bank, the Borrower also shall submit a letter of credit
      application on the Issuing Bank’s standard form in connection with any request
      for a Letter of Credit and shall guarantee the reimbursement of any Letter
      of
      Credit issued for the account of the Parent Guarantor or a
      Subsidiary.

     

    (c) Expiration
      Date.
      Each
      Letter of Credit shall expire at or prior to the close of business on the
      earlier of (i)
      the date
      one year after the date of the issuance of such Letter of Credit (or, in the
      case of any renewal, which renewal may be provided for in the initial Letter
      of
      Credit, or extension thereof, one year after such renewal or extension) and
      (ii)
      the date
      that is five Business Days prior to the Maturity Date.

     

    (d) Participations.
      By the
      issuance of a Letter of Credit (or an amendment to an existing Letter of Credit
      increasing the amount thereof) and without any further action on the part of
      the
      Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender,
      and
      each Lender hereby acquires from the Issuing Bank, a participation in such
      Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate
      amount available to be drawn under such Letter of Credit. In consideration
      and
      in furtherance of the foregoing, each Lender hereby absolutely and
      unconditionally agrees to pay to the Administrative Agent, for the account
      of
      the Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement
      made by the Issuing Bank and not reimbursed by the Borrower on the date due
      as
      provided in Section
      2.08(e),
      or of
      any reimbursement payment required to be refunded to the Borrower for any
      reason. Each Lender acknowledges and agrees that its obligation to acquire
      participations pursuant to this Section
      2.08(d)
      in
      respect of Letters of Credit is absolute and unconditional and shall not be
      affected by any circumstance whatsoever, including any amendment, renewal or
      extension of any Letter of Credit or the occurrence and continuance of a Default
      or reduction or termination of the Commitments, and that each such payment
      shall
      be made without any offset, abatement, withholding or reduction
      whatsoever.

     

    (e) Reimbursement.
      If the
      Issuing Bank shall make any LC Disbursement, the Borrower shall reimburse such
      LC Disbursement by paying to the Administrative Agent an amount equal to such
      LC
      Disbursement not later than the fifth (5th)
      Business Day after the Borrower shall have received notice of such LC
      Disbursement, together with interest on the amount disbursed from and including
      the date of disbursement until payment in full of such disbursed amount at
      a
      varying rate per annum equal to (i) the then applicable interest rate for ABR
      Loans for each day such LC Disbursement shall remain outstanding through the
      fifth (5th)
      Business Day following its receipt of notice of such disbursement and (ii)
      thereafter, the post-default rate for ABR Loans for the period from and
      including the sixth Business Day following the date of such disbursement to
      and
      including the date of repayment in full of such disbursed amount. If the
      Borrower fails to make such payment when due, the Administrative Agent shall
      notify each Lender of the applicable LC Disbursement, the payment then due
      from
      the Borrower in respect thereof and such Lender’s Applicable Percentage thereof.
      Promptly following receipt of such notice, each Lender shall pay to the
      Administrative Agent its Applicable Percentage of the payment then due from
      the
      Borrower, in the same manner as provided in Section
      2.05
      with
      respect to Loans made by such Lender (and Section
      2.05
      shall
      apply, mutatis
      mutandis,
      to the
      payment obligations of the Lenders), and the Administrative Agent shall promptly
      pay to the Issuing Bank the amounts so received by it from the Lenders. Promptly
      following receipt by the Administrative Agent of any payment from the Borrower
      pursuant to this Section
      2.08(e),
      the
      Administrative Agent shall distribute such payment to the Issuing Bank or,
      to
      the extent that Lenders have made payments pursuant to this Section
      2.08(e)
      to
      reimburse the Issuing Bank, then to such Lenders as their interests may
      appear.
      Any
      payment made by a Lender pursuant to this Section
      2.08(e)
      to
      reimburse the Issuing Bank for any LC Disbursement shall not constitute a Loan
      and shall not relieve the Borrower of its obligation to reimburse such LC
      Disbursement.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    (f) Obligations
      Absolute.
      The
      Borrower’s obligation to reimburse LC Disbursements as provided in Section
      2.08(e)
      shall be
      absolute, unconditional and irrevocable, and shall be performed strictly in
      accordance with the terms of this Agreement under any and all circumstances
      whatsoever and irrespective of (i)
      any lack
      of validity or enforceability of any Letter of Credit, any Letter of Credit
      Agreement or this Agreement, or any term or provision therein, (ii)
      any
      draft or other document presented under a Letter of Credit proving to be forged,
      fraudulent or invalid in any respect or any statement therein being untrue
      or
      inaccurate in any respect, (iii)
      payment
      by the Issuing Bank under a Letter of Credit against presentation of a draft
      or
      other document that does not comply with the terms of such Letter of Credit
      or
      any Letter of Credit Agreement, or (iv)
      any
      other event or circumstance whatsoever, whether or not similar to any of the
      foregoing, that might, but for the provisions of this Section
      2.08(f),
      constitute a legal or equitable discharge of, or provide a right of setoff
      against, the Borrower’s obligations hereunder. Neither the Administrative Agent,
      the Lenders nor the Issuing Bank, nor any of their Related Parties shall have
      any liability or responsibility by reason of or in connection with the issuance
      or transfer of any Letter of Credit or any payment or failure to make any
      payment thereunder (irrespective of any of the circumstances referred to in
      the
      preceding sentence), or any error, omission, interruption, loss or delay in
      transmission or delivery of any draft, notice or other communication under
      or
      relating to any Letter of Credit (including any document required to make a
      drawing thereunder), any error in interpretation of technical terms or any
      consequence arising from causes beyond the control of the Issuing Bank; provided
      that the foregoing shall not be construed to excuse the Issuing Bank from
      liability to the Borrower to the extent of any direct damages (as opposed to
      consequential damages, claims in respect of which are hereby waived by the
      Borrower to the extent permitted by applicable law) suffered by the Borrower
      that are caused by the Issuing Bank’s failure to exercise care when determining
      whether drafts and other documents presented under a Letter of Credit comply
      with the terms thereof. The parties hereto expressly agree that, in the absence
      of gross negligence or willful misconduct on the part of the Issuing Bank,
      the
      Issuing Bank shall be deemed to have exercised all requisite care in each such
      determination. In furtherance of the foregoing and without limiting the
      generality thereof, the parties agree that, with respect to documents presented
      which appear on their face to be in substantial compliance with the terms of
      a
      Letter of Credit, the Issuing Bank may, in its sole discretion, either accept
      and make payment upon such documents without responsibility for further
      investigation, regardless of any notice or information to the contrary, or
      refuse to accept and make payment upon such documents if such documents are
      not
      in strict compliance with the terms of such Letter of Credit.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    (g) Disbursement
      Procedures.
      The
      Issuing Bank shall, promptly following its receipt thereof, examine all
      documents purporting to represent a demand for payment under a Letter of Credit.
      The Issuing Bank shall promptly notify the Administrative Agent and the Borrower
      by telephone (confirmed by telecopy) of such demand for payment and whether
      the
      Issuing Bank has made or will make an LC Disbursement thereunder; provided
      that
      any failure to give or delay in giving such notice shall not relieve the
      Borrower of its obligation to reimburse the Issuing Bank and the Lenders with
      respect to any such LC Disbursement.

     

    (h) Interim
      Interest.
      If the
      Issuing Bank shall make any LC Disbursement, then, until the Borrower shall
      have
      reimbursed the Issuing Bank for such LC Disbursement, the unpaid amount thereof
      shall bear interest, for each day from and including the date such LC
      Disbursement is made to but excluding the date that the Borrower reimburses
      such
      LC Disbursement, at the rate per annum then applicable to ABR Loans. Interest
      accrued pursuant to this Section
      2.08(h)
      shall be
      for the account of the Issuing Bank, except that interest accrued on and after
      the date of payment by any Lender pursuant to Section
      2.08(e)
      to
      reimburse the Issuing Bank shall be for the account of such Lender to the extent
      of such payment.

     

    (i) Cash
      Collateralization.
      If
(i)
      any
      Event of Default shall occur and be continuing and the Borrower receives notice
      from the Administrative Agent or the Majority Lenders demanding the deposit
      of
      cash collateral pursuant to this Section
      2.08(i),
      or
(ii)
      the
      Borrower is required to pay to the Administrative Agent the excess attributable
      to an LC Exposure in connection with any prepayment pursuant to Section
      3.04(c),
      then
      the Borrower shall deposit, in an account with the Administrative Agent, in
      the
      name of the Administrative Agent and for the benefit of the Lenders, an amount
      in cash equal to, in the case of an Event of Default, the LC Exposure, and
      in
      the case of a payment required by Section
      3.04(c),
      the
      amount of such excess as provided in Section
      3.04(c),
      as of
      such date plus any accrued and unpaid interest thereon; provided that the
      obligation to deposit such cash collateral shall become effective three (3)
      Business Days after notice from the Administrative Agent, and such deposit
      shall
      become immediately due and payable, without demand or other notice of any kind,
      upon the occurrence of any Event of Default with respect to any Loan Party
      or
      any Subsidiary described in Section
      10.01(h)
      or
Section
      10.01(i).
      The
      Borrower hereby grants to the Administrative Agent, for the benefit of the
      Issuing Bank and the Lenders, an exclusive first priority and continuing
      perfected security interest in and Lien on such account and all cash, checks,
      drafts, certificates and instruments, if any, from time to time deposited or
      held in such account, all deposits or wire transfers made thereto, any and
      all
      investments purchased with funds deposited in such account, all interest,
      dividends, cash, instruments, financial assets and other Property from time
      to
      time received, receivable or otherwise payable in respect of, or in exchange
      for, any or all of the foregoing, and all proceeds, products, accessions, rents,
      profits, income and benefits therefrom, and any substitutions and replacements
      therefor. The Borrower’s obligation to deposit amounts pursuant to this
Section
      2.08(i)
      shall be
      absolute and unconditional, without regard to whether any beneficiary of any
      such Letter of Credit has attempted to draw down all or a portion of such amount
      under the terms of a Letter of Credit, and, to the fullest extent permitted
      by
      applicable law, shall not be subject to any defense or be affected by a right
      of
      set-off, counterclaim or recoupment which the Parent Guarantor, any other Loan
      Party or any of its Subsidiaries may now or hereafter have against any such
      beneficiary, the Issuing Bank, the Administrative Agent, the Lenders or any
      other Person for any reason whatsoever. Such deposit shall be held as collateral
      securing the payment and performance of the Borrower’s and the other Loan
      Party’s obligations under this Agreement and the other Loan Documents in a
“securities account” (within the meaning of Article 8 of the Uniform Commercial
      Code in effect from time to time in the State of New York, the “UCC”)
      over
      which the Administrative Agent shall have “control” (within the meaning of the
      UCC). Notwithstanding the foregoing, the Borrower may direct the Administrative
      Agent and the “securities intermediary” (within the meaning of the UCC) to
      invest amounts credited to the securities account, at the Borrower’s risk and
      expense, in Investments described in Section
      9.05(c)
      through
(f).
      Interest or profits, if any, on such investments shall accumulate in such
      account. Moneys in such account shall be applied by the Administrative Agent
      to
      reimburse, on a pro
      rata basis,
      the Issuing Bank for LC Disbursements for which it has not been reimbursed
      and,
      to the extent not so applied, shall be held for the satisfaction of the
      reimbursement obligations of the Borrower for the LC Exposure at such time
      or,
      if the maturity of the Loans has been accelerated, be applied to satisfy other
      obligations of the Borrower and the Loan Party’s under this Agreement or the
      other Loan Documents. If
      the
      Borrower is required to provide an amount of cash collateral hereunder as a
      result of the occurrence of an Event of Default, and the Borrower is not
      otherwise required to pay to the Administrative Agent the excess attributable
      to
      an LC Exposure in connection with any prepayment pursuant to Section
      3.04(c),
      then
      such amount (to the extent not applied as aforesaid) shall be returned to the
      Borrower within three Business Days after all Events of Default have been cured
      or waived.

     

    
      
        
        

      

      
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    (j) Existing
      Letters of Credit.
      On the
      Effective Date, the Existing Letters of Credit shall be deemed issued under
      this
      Agreement without further action on any Person’s part.

     

    ARTICLE
      III

    Payments
      of Principal and Interest; Prepayments; Fees

     

    Section
      3.01 Repayment
      of Loans.
      The
      Borrower hereby unconditionally promises to pay to the Administrative Agent
      for
      the account of each Lender the then unpaid principal amount of each Loan on
      the
      Termination Date.

     

    Section
      3.02 Interest.

     

    (a) ABR
      Loans.
      The
      Loans comprising each ABR Borrowing shall bear interest at the Alternate Base
      Rate plus the Applicable Margin.

     

    (b) Eurodollar
      Loans.
      The
      Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted
      LIBO Rate for the Interest Period in effect for such Borrowing plus the
      Applicable Margin.

     

    (c) Post-Default
      Rate.
      Notwithstanding the foregoing, if any principal of or interest on any Loan
      or
      any fee or other amount payable by the Borrower or any other Loan Party
      hereunder or under any other Loan Document is not paid when due, whether at
      stated maturity, upon acceleration or otherwise, such overdue amount shall
      bear
      interest, after as well as before judgment, at a rate per annum equal to two
      percent (2%) plus the rate applicable to ABR Loans as provided in Section
      3.02(a),
      or if
      no rate is then applicable to such amount, at a rate per annum equal to two
      percent (2%) plus the highest rate then applicable to ABR Loans as provided
      in
Section
      3.02(a).

     

    (d) Interest
      Payment Dates.
      Accrued
      interest on each Loan shall be payable in arrears on each Interest Payment
      Date
      for such Loan and on the Termination Date; provided that (i)
      interest
      accrued pursuant to Section
      3.02(c)
      shall be
      payable on demand, (ii)
      in the
      event of any repayment or prepayment of any Loan (other than an optional
      prepayment of an ABR Loan prior to the Termination Date), accrued interest
      on
      the principal amount repaid or prepaid shall be payable on the date of such
      repayment or prepayment, and (iii)
      in the
      event of any conversion of any Eurodollar Loan prior to the end of the current
      Interest Period therefor, accrued interest on such Loan shall be payable on
      the
      effective date of such conversion.

     

    (e) Interest
      Rate Computations.
      All
      interest hereunder shall be computed on the basis of a year of 360 days, except
      that interest computed by reference to the Alternate Base Rate at times when
      the
      Alternate Base Rate is based on the Prime Rate shall be computed on the basis
      of
      a year of 365 days (or 366 days in a leap year), and in each case shall be
      payable for the actual number of days elapsed (including the first day but
      excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO
      Rate
      or LIBO Rate shall be determined by the Administrative Agent, and such
      determination shall be conclusive absent manifest error, and be binding upon
      the
      parties hereto.

     

    
      
        
        

      

      
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    Section
      3.03 Alternate
      Rate of Interest.
      If
      prior to the commencement of any Interest Period for a Eurodollar
      Borrowing:

     

    (a) the
      Administrative Agent determines (which determination shall be conclusive absent
      manifest error) that adequate and reasonable means do not exist for ascertaining
      the Adjusted LIBO Rate or the LIBO Rate for such Interest Period;
      or

     

    (b) the
      Administrative Agent is advised by the Majority Lenders that the Adjusted LIBO
      Rate or LIBO Rate, as applicable, for such Interest Period will not adequately
      and fairly reflect the cost to such Lenders of making or maintaining their
      Loans
      included in such Borrowing for such Interest Period;

     

    then
      the
      Administrative Agent shall give notice thereof to the Borrower and the Lenders
      by telephone or telecopy as promptly as practicable thereafter and, until the
      Administrative Agent notifies the Borrower and the Lenders that the
      circumstances giving rise to such notice no longer exist, (i)
      any
      Interest Election Request that requests the conversion of any Borrowing to,
      or
      continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective,
      and (ii)
      if any
      Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be
      made
      as an ABR Borrowing.

     

    Section
      3.04 Prepayments.

     

    (a) Optional
      Prepayments.
      The
      Borrower shall have the right at any time and from time to time to prepay any
      Borrowing in whole or in part, subject to prior notice in accordance with
Section
      3.04(b).

     

    (b) Notice
      and Terms of Optional Prepayment.
      The
      Borrower shall notify the Administrative Agent by telephone (confirmed by
      telecopy) of any prepayment hereunder (i)
      in the
      case of prepayment of a Eurodollar Borrowing, not later than 12:00 noon, New
      York, New York time, three Business Days before the date of prepayment, or
      (ii)
      in the
      case of prepayment of an ABR Borrowing, not later than 12:00 noon, New York,
      New
      York time, one (1) Business Day prior to the date of prepayment. Each such
      notice shall be irrevocable and shall specify the prepayment date and the
      principal amount of each Borrowing or portion thereof to be prepaid. Promptly
      following receipt of any such notice relating to a Borrowing, the Administrative
      Agent shall advise the Lenders of the contents thereof. Each partial prepayment
      of any Borrowing shall be in an amount that would be permitted in the case
      of an
      advance of a Borrowing of the same Type as provided in Section
      2.02.
      Each
      prepayment of a Borrowing shall be applied ratably to the Loans included in
      the
      prepaid Borrowing. Prepayments shall be accompanied by accrued interest to
      the
      extent required by Section
      3.02.

     

    (c) Mandatory
      Prepayments.

     

    (i) If,
      after
      giving effect to any termination or reduction of the Aggregate Maximum Credit
      Amounts pursuant to Section
      2.06(b),
      the
      total Revolving Credit Exposures exceeds the total Commitments, then the
      Borrower shall (A)
      prepay
      the Borrowings on the date of such termination or reduction in an aggregate
      principal amount equal to such excess, and (B)
      if any
      excess remains after prepaying all of the Borrowings as a result of an LC
      Exposure, pay to the Administrative Agent on behalf of the Lenders an amount
      equal to such excess to be held as cash collateral as provided in Section
      2.08(i).

     

    
      
        
        

      

      
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    (ii) Upon
      any
      scheduled or interim redetermination of the amount of the Borrowing Base in
      accordance with Section
      2.07(d)
      or
      adjustment under Section
      8.13(c)
      at any
      time, if the total Revolving Credit Exposures exceeds the redetermined or
      adjusted Borrowing Base, then the Borrower shall, within thirty (30) days after
      its receipt of a New Borrowing Base Notice inform the Administrative Agent
      of
      the Borrower’s election to: (A) prepay the Loans in six equal monthly
      installments, commencing on the 30th day following its receipt of such New
      Borrowing Base Notice or notice of adjustment with each payment being equal
      to
      1/6th of the deficiency (provided that all payments required to be made pursuant
      to this Section
      3.04(c)(ii)
      must be
      made on or prior to the Termination Date), (B) furnish additional Oil and
      Gas Properties not evaluated in the Reserve Report having a loan value (as
      determined by the Lenders in their sole discretion) not less than the deficiency
      or (C) undertake a combination of clauses (A) and (B) satisfactory to the
      Administrative Agent and all of the Lenders. If, because of LC Exposure, a
      Borrowing Base deficiency remains after prepaying all of the Loans, the Borrower
      shall pay to the Administrative Agent on behalf of the Lenders an amount equal
      to such remaining Borrowing Base deficiency to be held as cash collateral as
      provided in Section
      2.08(i).
      

     

    (iii) Upon
      any
      adjustments to the Borrowing Base pursuant to Section
      2.07(f)
      or
Section
      9.11,
      if the
      total Revolving Credit Exposures exceeds the Borrowing Base as adjusted, then
      the Borrower shall (A)
      prepay
      Borrowings in an aggregate principal amount equal to such excess, and
(B)
      if any
      excess remains after prepaying all Borrowings as a result of an LC Exposure,
      pay
      to the Administrative Agent on behalf of the Lenders an amount equal to such
      excess to be held as cash collateral as provided in Section
      2.08(i).
      The
      Borrower shall be obligated to make such prepayment and/or deposit of cash
      collateral on the date the Parent Guarantor, the Borrower or such other Person
      receives cash proceeds as a result of such disposition or such incurrence of
      Debt.

     

    (iv) Each
      prepayment of Borrowings pursuant to this Section
      3.04(c)
      shall be
      applied, first, ratably to any ABR Borrowings then outstanding, and, second,
      to
      any Eurodollar Borrowings then outstanding as the Borrower may
      direct.

     

    (v) Each
      prepayment of Borrowings pursuant to this Section
      3.04(c)
      shall be
      applied ratably to the Loans included in the prepaid Borrowings.
      Prepayments pursuant to this Section
      3.04(c)
      shall be
      accompanied by accrued interest to the extent required by Section
      3.02.

     

    (d) No
      Premium or Penalty.
      Prepayments permitted or required under this Section
      3.04
      shall be
      without premium or penalty, except as required under Section
      5.02.

     

    Section
      3.05 Fees.

     

    (a) Commitment
      Fees.
      The
      Borrower agrees to pay to the Administrative Agent for the account of each
      Lender a commitment fee, which shall accrue at the applicable Commitment Fee
      Rate on the average daily amount of the unused amount of each Lender’s
      Applicable Percentage of the Borrowing Base during the period from and including
      the date of this Agreement to but excluding the Termination Date. Accrued
      commitment fees shall be payable in arrears on the third Business Day after
      the
      last day of March, June, September and December of each year and on the
      Termination Date, commencing on the first such date to occur after the date
      hereof. All commitment fees shall be computed on the basis of a year of 360
      days
      and shall be payable for the actual number of days elapsed (including the first
      day but excluding the last day).

     

    (b) Letter
      of Credit Fees.
      The
      Borrower agrees to pay (i)
      to the
      Administrative Agent for the account of each Lender a participation fee with
      respect to its participations in Letters of Credit, which shall accrue at the
      same Applicable Margin for Eurodollar Loans on the average daily amount of
      such
      Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed
      LC Disbursements) during the period from and including the date of this
      Agreement to but excluding the later of the date on which such Lender’s
      Commitment terminates and the date on which such Lender ceases to have any
      LC
      Exposure, (ii)
      to the
      Issuing Bank, for its own account, a fronting fee, which shall accrue at the
      rate of 0.125% per annum on the average daily amount of the LC Exposure
      (excluding any portion thereof attributable to unreimbursed LC Disbursements)
      during the period from and including the date of this Agreement to but excluding
      the later of the date of termination of the Commitments and the date on which
      there ceases to be any LC Exposure, provided that in no event shall such fee
      be
      less than $500 during any year, and (iii)
      to the
      Issuing Bank, for its own account, its standard and customary fees with respect
      to the issuance, amendment, renewal or extension of any Letter of Credit or
      processing of drawings thereunder. Participation fees and fronting fees accrued
      through and including the last day of March, June, September and December of
      each year shall be payable on the third Business Day following such last day,
      commencing on the first such date to occur after the date of this Agreement;
      provided that all such fees shall be payable on the Termination Date and any
      such fees accruing after the Termination Date shall be payable on demand. Any
      other fees payable to the Issuing Bank pursuant to this Section
      3.05(b)
      shall be
      payable within 10 days after demand. All participation fees and fronting fees
      shall be computed on the basis of a year of 360 days and shall be payable for
      the actual number of days elapsed (including the first day but excluding the
      last day).

     

    
      
        
        

      

      
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    (c) Administrative
      Agent Fees.
      The
      Borrower agrees to pay to the Administrative Agent, for its own account, fees
      payable in the amounts and at the times separately agreed upon among the Parent
      Guarantor, the Borrower and the Administrative Agent.

     

    ARTICLE
      IV

    Payments;
      Pro Rata Treatment; Sharing of Set-offs.

     

    Section
      4.01 Payments
      Generally; Pro Rata Treatment; Sharing of Set-offs.

     

    (a) Payments
      by the Borrower.
      The
      Borrower shall make each payment required to be made by it hereunder (whether
      of
      principal, interest, fees or reimbursement of LC Disbursements, or of amounts
      payable under Section
      5.01,
      Section
      5.02,
      Section
      5.03
      or
      otherwise) prior to 12:00 noon, New York, New York time, on the date when due,
      in immediately available funds, without defense, deduction, recoupment, set-off
      or counterclaim. Fees, once paid, shall be fully earned and shall not be
      refundable under any circumstances. Any amounts received after such time on
      any
      date may, in the discretion of the Administrative Agent, be deemed to have
      been
      received on the next succeeding Business Day for purposes of calculating
      interest thereon. All such payments shall be made to the Administrative Agent
      at
      its offices specified in Section
      12.01,
      except
      payments to be made directly to the Issuing Bank as expressly provided herein
      and except that payments pursuant to Section
      5.01,
      Section
      5.02,
      Section
      5.03
      and
Section
      12.03
      shall be
      made directly to the Persons entitled thereto. The Administrative Agent shall
      distribute any such payments received by it for the account of any other Person
      to the appropriate recipient promptly following receipt thereof. If any payment
      hereunder shall be due on a day that is not a Business Day, the date for payment
      shall be extended to the next succeeding Business Day, and, in the case of
      any
      payment accruing interest, interest thereon shall be payable for the period
      of
      such extension. All payments hereunder shall be made in dollars.

     

    (b) Application
      of Insufficient Payments.
      If at
      any time prior the Termination Date, insufficient funds are received by and
      available to the Administrative Agent to pay fully all amounts of principal,
      unreimbursed LC Disbursements, interest, fees and other amounts then due
      hereunder, such funds shall be applied: first,
      ratably
      to reimbursement of expenses and indemnities provided for in this Agreement
      and
      the Security Instruments; second,
      to
      accrued interest on the Loans; third,
      to
      fees; fourth,
      pro
      rata to outstanding principal of the Loans and unreimbursed LC Disbursements;
      and fifth,
      if
      applicable, to serve as cash collateral to be held by the Administrative Agent
      to secure the LC Exposure, in each case, ratably among the parties entitled
      thereto in accordance with the amounts then due to such parties.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    (c) Sharing
      of Payments by Lenders.
      If any
      Lender shall, by exercising any right of set-off or counterclaim or otherwise,
      obtain payment in respect of any principal of or interest on any of its Loans
      or
      participations in LC Disbursements resulting in such Lender receiving payment
      of
      a greater proportion of the aggregate amount of its Loans and participations
      in
      LC Disbursements and accrued interest thereon than the proportion received
      by
      any other Lender, then the Lender receiving such greater proportion shall
      purchase (for cash at face value) participations in the Loans and participations
      in LC Disbursements of other Lenders to the extent necessary so that the benefit
      of all such payments shall be shared by the Lenders ratably in accordance with
      the aggregate amount of principal of and accrued interest on their respective
      Loans and participations in LC Disbursements; provided that (i)
      if any
      such participations are purchased and all or any portion of the payment giving
      rise thereto is recovered, such participations shall be rescinded and the
      purchase price restored to the extent of such recovery, without interest, and
      (ii)
      the
      provisions of this Section
      4.01(c)
      shall
      not be construed to apply to any payment made by the Borrower pursuant to and
      in
      accordance with the express terms of this Agreement or any payment obtained
      by a
      Lender as consideration for the assignment of or sale of a participation in
      any
      of its Loans or participations in LC Disbursements to any assignee or
      participant, other than to a Loan Party or Affiliate thereof (as to which the
      provisions of this Section
      4.01(c)
      shall
      apply). The Parent Guarantor and the Borrower consents to the foregoing and
      agrees, to the extent it may effectively do so under applicable law, that any
      Lender acquiring a participation pursuant to the foregoing arrangements may
      exercise against either the Parent Guarantor or the Borrower rights of set-off
      and counterclaim with respect to such participation as fully as if such Lender
      were a direct creditor of the Parent Guarantor and the Borrower in the amount
      of
      such participation.

     

    Section
      4.02 Presumption
      of Payment by the Borrower.
      Unless
      the Administrative Agent shall have received notice from the Borrower prior
      to
      the date on which any payment is due to the Administrative Agent for the account
      of the Lenders or the Issuing Bank that the Borrower will not make such payment,
      the Administrative Agent may assume that the Borrower has made such payment
      on
      such date in accordance herewith and may, in reliance upon such assumption,
      distribute to the Lenders or the Issuing Bank, as the case may be, the amount
      due. In such event, if the Borrower has not in fact made such payment, then
      each
      of the Lenders or the Issuing Bank, as the case may be, severally agrees to
      repay to the Administrative Agent forthwith on demand the amount so distributed
      to such Lender or the Issuing Bank with interest thereon, for each day from
      and
      including the date such amount is distributed to it to but excluding the date
      of
      payment to the Administrative Agent, at the greater of the Federal Funds
      Effective Rate and a rate determined by the Administrative Agent in accordance
      with banking industry rules on interbank compensation.

     

    Section
      4.03 Certain
      Deductions by the Administrative Agent.
      If any
      Lender shall fail to make any payment required to be made by it pursuant to
      Section
      2.05(b),
      Section
      2.08(d),
      Section
      2.08(e)
      or
Section
      4.02
      then the
      Administrative Agent may, in its discretion (notwithstanding any contrary
      provision hereof), apply any amounts thereafter received by the Administrative
      Agent for the account of such Lender to satisfy such Lender’s obligations under
      such Sections until all such unsatisfied obligations are fully
      paid.

     

    Section
      4.04 Disposition
      of Proceeds.
      The
      Security Instruments contain an assignment by the Borrower and/or the Loan
      Party’s unto and in favor of the Administrative Agent for the benefit of the
      Lenders of all of the Borrower’s or each other Loan Party’s interest in and to
      production and all proceeds attributable thereto which may be produced from
      or
      allocated to the Mortgaged Property. The Security Instruments further provide
      in
      general for the application of such proceeds to the satisfaction of the
      Indebtedness and other obligations described therein and secured thereby.
      Notwithstanding the assignment contained in such Security Instruments, until
      the
      occurrence of an Event of Default, the
      Administrative Agent and the Lenders agree that they will neither notify the
      purchaser or purchasers of such production nor take any other action to cause
      such proceeds to be remitted to the Administrative Agent or the Lenders, but
      the
      Lenders will instead permit such proceeds to be paid to the Borrower or any
      other applicable Loan Party and
      the
      Lenders hereby authorize the Administrative Agent to take such actions as may
      be
      necessary to cause such proceeds to be paid to the Borrower and/or such Loan
      Parties.

     

    
      
        
        

      

      
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    ARTICLE
      V

    Increased
      Costs; Break Funding Payments; Taxes

     

    Section
      5.01 Increased
      Costs.

     

    (a) Eurodollar
      Changes in Law.
      If any
      Change in Law shall:

     

    (i) impose,
      modify or deem applicable any reserve, special deposit or similar requirement
      against assets of, deposits with or for the account of, or credit extended
      by,
      any Lender (except any such reserve requirement reflected in the Adjusted LIBO
      Rate); or

     

    (ii) impose
      on
      any Lender or the London interbank market any other condition affecting this
      Agreement or Eurodollar Loans made by such Lender;

     

    and
      the
      result of any of the foregoing shall be to increase the cost to such Lender
      of
      making or maintaining any Eurodollar Loan (or of maintaining its obligation
      to
      make any such Loan) or to reduce the amount of any sum received or receivable
      by
      such Lender (whether of principal, interest or otherwise), then the Borrower
      will pay to such Lender such additional amount or amounts as will compensate
      such Lender for such additional costs incurred or reduction
      suffered.

     

    (b) Capital
      Requirements.
      If any
      Lender or the Issuing Bank determines that any Change in Law regarding capital
      requirements has or would have the effect of reducing the rate of return on
      such
      Lender’s or the Issuing Bank’s capital or on the capital of such Lender’s or the
      Issuing Bank’s holding company, if any, as a consequence of this Agreement or
      the Loans made by, or participations in Letters of Credit held by, such Lender,
      or the Letters of Credit issued by the Issuing Bank, to a level below that
      which
      such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding
      company could have achieved but for such Change in Law (taking into
      consideration such Lender’s or the Issuing Bank’s policies and the policies of
      such Lender’s or the Issuing Bank’s holding company with respect to capital
      adequacy), then from time to time the Borrower will pay to such Lender or the
      Issuing Bank, as the case may be, such additional amount or amounts as will
      compensate such Lender or the Issuing Bank or such Lender’s or the Issuing
      Bank’s holding company for any such reduction suffered.

     

    (c) Certificates.
      A
      certificate of a Lender or the Issuing Bank setting forth the amount or amounts
      necessary to compensate such Lender or the Issuing Bank or its holding company,
      as the case may be, as specified in Section 5.01(a) or (b) and reasonably
      detailed calculations therefor shall be delivered to the Borrower and shall
      be
      conclusive absent manifest error. The Borrower shall pay such Lender or the
      Issuing Bank, as the case may be, the amount shown as due on any such
      certificate within 30 days after receipt thereof.

     

    (d) Effect
      of Failure or Delay in Requesting Compensation.
      Failure
      or delay on the part of any Lender or the Issuing Bank to demand compensation
      pursuant to this Section 5.01 shall not constitute a waiver of such Lender’s or
      the Issuing Bank’s right to demand such compensation; provided that the Borrower
      shall not be required to compensate a Lender or the Issuing Bank pursuant to
      this Section 5.01 for any increased costs or reductions incurred more than
      one
      (1) year prior to the date that such Lender or the Issuing Bank, as the case
      may
      be, notifies the Borrower of the Change in Law giving rise to such increased
      costs or reductions and of such Lender’s or the Issuing Bank’s intention to
      claim compensation therefor; provided further that, if the Change in Law giving
      rise to such increased costs or reductions is retroactive, then the one (1)
      year
      period referred to above shall be extended to include the period of retroactive
      effect thereof.

     

    
      
        
        

      

      
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    Section
      5.02 Break
      Funding Payments.
      In the
      event of (a) the payment of any principal of any Eurodollar Loan other than
      on
      the last day of an Interest Period applicable thereto (including as a result
      of
      an Event of Default), (b) the conversion of any Eurodollar Loan into an ABR
      Loan
      other than on the last day of the Interest Period applicable thereto, or (c)
      the
      failure to borrow, convert, continue or prepay any Eurodollar Loan on the date
      specified in any notice delivered pursuant hereto, or (d) the assignment of
      any
      Eurodollar Loan other than on the last day of the Interest Period applicable
      thereto as a result of a request by the Borrower pursuant to Section 5.05,
      then,
      in any such event, the Borrower shall compensate each Lender for the loss,
      cost
      and expense attributable to such event. In the case of a Eurodollar Loan, such
      loss, cost or expense to any Lender shall be deemed to include an amount
      determined by such Lender to be the excess, if any, of (i) the amount of
      interest which would have accrued on the principal amount of such Loan had
      such
      event not occurred, at the Adjusted LIBO Rate that would have been applicable
      to
      such Loan, for the period from the date of such event to the last day of the
      then current Interest Period therefor (or, in the case of a failure to borrow,
      convert or continue, for the period that would have been the Interest Period
      for
      such Loan), over (ii) the amount of interest which would accrue on such
      principal amount for such period at the interest rate which such Lender would
      bid were it to bid, at the commencement of such period, for dollar deposits
      of a
      comparable amount and period from other banks in the eurodollar
      market.

     

    A
      certificate of any Lender setting forth any amount or amounts that such Lender
      is entitled to receive pursuant to this Section 5.02 shall be delivered to
      the
      Borrower and shall be conclusive absent manifest error. The Borrower shall
      pay
      such Lender the amount shown as due on any such certificate within 30 days
      after
      receipt thereof.

     

    Section
      5.03 Taxes.

     

    (a) All
      payments made by any Loan Party under this Agreement or any Loan Document shall
      be made free and clear of, and without deduction or withholding for or on
      account of, any present or future income, stamp or other taxes, levies, imposts,
      duties, charges, fees, deductions or withholdings, now or hereafter imposed,
      levied, collected, withheld or assessed by any Governmental Authority, excluding
      net income taxes and franchise taxes (imposed in lieu of net income taxes)
      imposed on the Administrative Agent or any Lender as a result of a present
      or
      former connection between the Administrative Agent or such Lender and the
      jurisdiction of the Governmental Authority imposing such tax or any political
      subdivision or taxing authority thereof or therein (other than any such
      connection arising solely from the Administrative Agent or such Lender having
      executed, delivered or performed its obligations or received a payment under,
      or
      enforced, this Agreement or any other Loan Document). If any such non-excluded
      taxes, levies, imposts, duties, charges, fees, deductions or withholdings
      (“Non-Excluded
      Taxes”)
      or
      Other Taxes are required to be withheld from any amounts payable to the
      Administrative Agent or any Lender hereunder, the amounts so payable to the
      Administrative Agent or such Lender shall be increased to the extent necessary
      to yield to the Administrative Agent or such Lender (after payment of all
      Non-Excluded Taxes and Other Taxes) interest or any such other amounts payable
      hereunder at the rates or in the amounts specified in this Agreement,
provided,
      however,
      that
      the Borrower shall not be required to increase any such amounts payable to
      any
      Lender with respect to any Non-Excluded Taxes (i) that are attributable to
      such
      Lender’s failure to comply with the requirements of Section 5.03(d) or (e) or
      (ii) that are United States withholding taxes imposed on amounts payable to
      such
      Lender at the time such Lender becomes a party to this Agreement, except to
      the
      extent that such Lender’s assignor (if any) was entitled, at the time of
      assignment, to receive additional amounts from the Borrower with respect to
      such
      Non-Excluded Taxes pursuant to this Section 5.03(a).

     

    
      
        
        

      

      
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    (b) In
      addition, the Borrower shall pay any Other Taxes to the relevant Governmental
      Authority in accordance with applicable law.

     

    (c) Whenever
      any Non-Excluded Taxes or Other Taxes are payable by a Loan Party, as promptly
      as possible thereafter such Loan Party shall send to the Administrative Agent
      for its own account or for the account of the relevant Lender, as the case
      may
      be, a certified copy of an original official receipt received by such Loan
      Party
      showing payment thereof. If such Loan Party fails to pay any Non-Excluded Taxes
      or Other Taxes when due to the appropriate taxing authority or fails to remit
      to
      the Administrative Agent the required receipts or other required documentary
      evidence, the Borrower shall indemnify the Administrative Agent and the Lenders
      for any incremental taxes, interest or penalties that may become payable by
      the
      Administrative Agent or any Lender as a result of any such failure.

     

    (d) Each
      Lender (or Transferee) that is not a “U.S. Person” as defined in Section
      7701(a)(30) of the Code (a “Non-U.S.
      Lender”)
      shall
      deliver to the Borrower and the Administrative Agent (or, in the case of a
      Participant, to the Lender from which the related participation shall have
      been
      purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN or
      Form W-8ECI, or, in the case of a Non-U.S. Lender claiming exemption from U.S.
      federal withholding tax under Section 871(h) or 881(c) of the Code with respect
      to payments of “portfolio interest”, a statement substantially in the form of
      Exhibit H and a Form W-8BEN, or any subsequent versions thereof or successors
      thereto, properly completed and duly executed by such Non-U.S. Lender claiming
      complete exemption from, or a reduced rate of, U.S. federal withholding tax
      on
      all payments by the Loan Parties under this Agreement and the other Loan
      Documents. Such forms shall be delivered by each Non-U.S. Lender on or before
      the date it becomes a party to this Agreement (or, in the case of any
      Participant, on or before the date such Participant purchases the related
      participation). In addition, each Non-U.S. Lender shall deliver such forms
      promptly upon the obsolescence or invalidity of any form previously delivered
      by
      such Non-U.S. Lender. Each Non-U.S. Lender shall promptly notify the Borrower
      at
      any time it determines that it is no longer in a position to provide any
      previously delivered certificate to the Borrower (or any other form of
      certification adopted by the U.S. taxing authorities for such purpose).
      Notwithstanding any other provision of this Section 5.03(d), a Non-U.S. Lender
      shall not be required to deliver any form pursuant to this Section 5.03(d)
      that
      such Non-U.S. Lender is not legally able to deliver.

     

    (e) A
      Lender
      that is entitled to an exemption from or reduction of non-U.S. withholding
      tax
      under the law of the jurisdiction in which the Borrower is located, or any
      treaty to which such jurisdiction is a party, with respect to payments under
      this Agreement or any Loan Document shall deliver to the Borrower (with a copy
      to the Administrative Agent), at the time or times prescribed by applicable
      law
      or reasonably requested by the Borrower, such properly completed and executed
      documentation prescribed by applicable law as will permit such payments to
      be
      made without withholding or at a reduced rate, provided
      that
      such Lender is legally entitled to complete, execute and deliver such
      documentation and in such Lender’s judgment such completion, execution or
      submission would not materially prejudice the legal position of such
      Lender.

     

    (f) If
      the
      Administrative Agent or any Lender determines, in its sole discretion, that
      it
      has received a refund of any Non-Excluded Taxes or Other Taxes as to which
      it
      has been indemnified by the Borrower or with respect to which the Borrower
      has
      paid additional amounts pursuant to this Section 5.03, it shall pay over such
      refund to the Borrower (but only to the extent of indemnity payments made,
      or
      additional amounts paid, by the Borrower under this Section 5.03 with respect
      to
      the Non-Excluded Taxes or Other Taxes giving rise to such refund), net of all
      out-of-pocket expenses of the Administrative Agent or such Lender and without
      interest (other than any interest paid by the relevant Governmental Authority
      with respect to such refund); provided,
      that
      the Borrower, upon the request of the Administrative Agent or such Lender,
      agrees to repay the amount paid over to the Borrower (plus any penalties,
      interest or other charges imposed by the relevant Governmental Authority) to
      the
      Administrative Agent or such Lender in the event the Administrative Agent or
      such Lender is required to repay such refund to such Governmental Authority.
      This Section 5.03 shall not be construed to require the Administrative Agent
      or
      any Lender to make available its tax returns (or any other information relating
      to its taxes which it deems confidential) to the Borrower or any other
      Person.

     

    
      
        
        

      

      
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    (g) The
      agreements in this Section 5.03 shall survive the termination of this Agreement
      and the payment of the Loans and all other amounts payable
      hereunder.

     

    Section
      5.04 Designation
      of Different Lending Office.
      If any
      Lender requests compensation under Section 5.01, or if the Borrower is
      required to pay any additional amount to any Lender or any Governmental
      Authority for the account of any Lender pursuant to Section 5.03, then such
      Lender shall use reasonable efforts to designate a different lending office
      for
      funding or booking its Loans hereunder or to assign its rights and obligations
      hereunder to another of its offices, branches or affiliates, if, in the judgment
      of such Lender, such designation or assignment (a) would eliminate or reduce
      amounts payable pursuant to Section 5.01 or Section 5.03, as the case may be,
      in
      the future and (b) would not subject such Lender to any unreimbursed cost or
      expense and would not otherwise be disadvantageous to such Lender. The Borrower
      hereby agrees to pay all reasonable costs and expenses incurred by any Lender
      in
      connection with any such designation or assignment.

     

    Section
      5.05 Replacement
      of Lenders.
      If (a)
      any Lender requests compensation under Section 5.01, (b) the Borrower is
      required to pay any additional amount to any Lender or any Governmental
      Authority for the account of any Lender pursuant to Section 5.03, (c) any Lender
      defaults in its obligation to fund Loans hereunder, (d) any Lender has not
      approved (or is not deemed to have approved) an increase in the Borrowing Base
      proposed by the Administrative Agent pursuant to Section 2.07(c)(iii) which
      has
      been approved by Lenders holding 75% or more of the then outstanding Commitments
      or (e) any Lender has not approved a proposed waiver or amendment requiring
      100%
      approval or consent but which has been approved by Lenders holding 75% or more
      of the then outstanding Commitments, then the Borrower may, at its sole expense
      and effort, upon notice to such Lender and the Administrative Agent, require
      such Lender to assign and delegate, without recourse (in accordance with and
      subject to the restrictions contained in Section 12.04(b)), all its interests,
      rights and obligations under this Agreement to an assignee that shall assume
      such obligations (which assignee may be another Lender, if a Lender accepts
      such
      assignment); provided
      that (i)
      the Borrower shall have received the prior written consent of the Administrative
      Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall
      have received payment of an amount equal to the outstanding principal of its
      Loans and participations in LC Disbursements, accrued interest thereon, accrued
      fees and all other amounts payable to it hereunder, from the assignee (to the
      extent of such outstanding principal and accrued interest and fees) or the
      Borrower (in the case of all other amounts) and (iii) in the case of any such
      assignment resulting from a claim for compensation under Section 5.01 or
      payments required to be made pursuant to Section 5.03, such assignment will
      result in a reduction in such compensation or payments or will result in the
      approval of the proposed Borrowing Base. A Lender shall not be required to
      make
      any such assignment and delegation if, prior thereto, as a result of a waiver
      by
      such Lender or otherwise, the circumstances entitling the Borrower to require
      such assignment and delegation cease to apply.

     

    
      
        
        

      

      
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    ARTICLE
      VI

    Conditions
      Precedent

     

    Section
      6.01 Effective
      Date.
      The
      obligations of the Lenders to make Loans and of the Issuing Bank to issue
      Letters of Credit hereunder shall not become effective until the date on which
      each of the following conditions is satisfied (or waived in accordance with
      Section 12.02):

     

    (a) The
      Administrative Agent, the Arranger and the Lenders shall have received all
      fees
      and other amounts due and payable on or prior to the Effective Date, including,
      to the extent invoiced, reimbursement or payment of all out-of-pocket expenses
      required to be reimbursed or paid by the Borrower hereunder.

     

    (b) The
      Administrative Agent shall have received a certificate of the Secretary or
      an
      Assistant Secretary of the Borrower and each Guarantor setting forth (i)
      resolutions of its board of directors with respect to the authorization of
      the
      Borrower or such Guarantor to execute and deliver the Loan Documents to which
      it
      is a party and to enter into the transactions contemplated in those documents,
      (ii) the officers of the Borrower or such Guarantor (A) who are authorized
      to
      sign the Loan Documents to which the Borrower or such Guarantor is a party
      and
      (B) who will, until replaced by another officer or officers duly authorized
      for
      that purpose, act as its representative for the purposes of signing documents
      and giving notices and other communications in connection with this Agreement
      and the transactions contemplated hereby, (iii) specimen signatures of such
      authorized officers, and (iv) the articles or certificate of incorporation
      and
      bylaws of the Borrower and such Guarantor, certified as being true and complete.
      The Administrative Agent and the Lenders may conclusively rely on such
      certificate until the Administrative Agent receives notice in writing from
      the
      Borrower to the contrary.

     

    (c) The
      Administrative Agent shall have received certificates of the appropriate State
      agencies with respect to the existence, qualification and good standing of
      the
      Borrower and each Guarantor.

     

    (d) The
      Administrative Agent shall have received a compliance certificate which shall
      be
      substantially in the form of Exhibit D, duly and properly executed by a
      Responsible Officer of the Parent Guarantor and dated as of the date of
      Effective Date.

     

    (e) The
      Administrative Agent shall have received from each party hereto counterparts
      (in
      such number as may be requested by the Administrative Agent) of this Agreement
      signed on behalf of such party.

     

    (f) The
      Administrative Agent shall have received from each party thereto duly executed
      counterparts (in such number as may be requested by the Administrative Agent)
      of
      the Security Instruments, including the Guaranty Agreement and the other
      Security Instruments described on Exhibit F-1. In connection with the execution
      and delivery of the Security Instruments, the Administrative Agent
      shall:

     

    (i) be
      reasonably satisfied that the Security Instruments create first priority,
      perfected Liens (except that Excepted Liens identified in clauses (a) to (d)
      and
      (f) of the definition thereof may exist, but subject to the provisos at the
      end
      of such definition) on at least 80% of the total value of the Oil and Gas
      Properties evaluated in the Initial Reserve Report; and

     

    (ii) be
      reasonably satisfied that each of its Wholly-Owned Subsidiaries which are not
      Unrestricted Subsidiaries shall have pledged all of its partnership interests
      in
      each Partnership; and

     

    
      
        
        

      

      
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    (iii) have
      received certificates, if appropriate, together with undated, blank stock powers
      for each such certificate, representing all of the issued and outstanding Equity
      Interests of the Borrower and each of the Guarantors (other than the Parent
      Guarantor).

     

    (g) The
      Administrative Agent shall have received an opinion of (i) Ledgewood, special
      counsel to the Parent Guarantor and the Borrower, substantially in the form
      of
      Exhibit E hereto and (ii) local counsel in each of the following states:
      Michigan, Ohio, Pennsylvania and any other jurisdictions requested by the
      Administrative Agent, substantially in the form of Exhibit E-2.

     

    (h) The
      Administrative Agent shall have received a certificate of insurance coverage
      of
      the Borrower evidencing that the Borrower is carrying insurance in accordance
      with Section 7.13.

     

    (i) The
      Administrative Agent shall have received title information as the Administrative
      Agent may reasonably require satisfactory to the Administrative Agent setting
      forth the status of title to at least 75% of the total value of the Oil and
      Gas
      Properties evaluated in the Initial Reserve Report.

     

    (j) The
      Administrative Agent shall have received a certificate of a Responsible Officer
      of the Parent Guarantor certifying that the Parent Guarantor or a Loan Party
      has
      (i) received all consents and approvals required by Section 7.03, and (ii)
      no
      action, investigation, litigation or proceeding pending or threatened in any
      court or before any Governmental Authority that could reasonably be expected
      to
      have a Material Adverse Effect on the Parent, the Acquisition, any other
      Transaction or any of the other transactions contemplated hereby.

     

    (k) The
      Administrative Agent shall have received the financial statements referred
      to in
      Section 7.04(a) and the Initial Reserve Report accompanied by a certificate
      covering the matters described in Section 8.12(c).

     

    (l) The
      Administrative Agent shall have received appropriate UCC search certificates
      reflecting no prior Liens encumbering the Properties of each Loan Party, each
      Partnership and the Target and its Subsidiaries for each of the following
      jurisdictions: Delaware, Michigan, New York, Ohio, Pennsylvania and any other
      jurisdiction requested by the Administrative Agent;
      other
      than those being assigned or released on or prior to the Effective Date or
      Liens
      permitted by Section 9.03.

     

    (m) The
      sources and uses of funding for the Transaction shall be substantially
      consistent with the Annex II and the terms of such funding sources shall be
      consistent with the terms hereof or the Transaction Agreement, as applicable;
      and the Borrower shall have unused availability under this Agreement of not
      less
      than $150,000,000. The Administrative Agent shall have received a certificate
      of
      a Responsible Officer of the Parent Guarantor certifying that no provision
      of
      the Acquisition Agreement shall have been unenforced, waived, amended,
      supplemented or otherwise modified in any respect materially adverse to the
      Borrower or the Lenders without the prior consent of the Administrative
      Agent.

     

    (n) The
      Administrative Agent shall have received (i) a certificate of a Responsible
      Officer of the Parent Guarantor certifying: (A) that the Borrower or a Guarantor
      is concurrently consummating the Acquisition in accordance with the terms of
      the
      Acquisition Agreement (with all of the material conditions precedent thereto
      having been satisfied in all material respects by the parties thereto) and
      applicable law and acquiring substantially all of the Acquisition Properties
      contemplated by the Acquisition Documents; (B) as to the final purchase price
      for the Acquisition Properties after giving effect to all adjustments as of
      the
      closing date contemplated by the Acquisition Documents and specifying, by
      category (i.e.,
      working
      capital, cap-ex, title defect or environmental defect), the amount of such
      adjustment; (C) that attached thereto is a true and complete list of the
      Acquisition Properties, if any, which have been excluded from the Acquisition
      pursuant to the terms of the Acquisition Documents, specifying with respect
      thereto the basis of exclusion as (1) title defect or (2) environmental defect;
      (D) that attached thereto is a true and complete list of all Acquisition
      Properties for which any seller has elected to cure a title defect, (E) that
      attached thereto is a true and complete list of all Acquisition Properties
      for
      which any seller has elected to remediate an adverse environmental condition,
      and (F) that attached thereto is a true and complete list of all Acquisition
      Properties which are currently pending final decision by a third party regarding
      purchase of such property in accordance with any preferential right; (ii) a
      true
      and complete executed copy of the Acquisition Agreement; (iii) original
      counterparts or copies, certified as true and complete, of the assignments,
      deeds and leases for all of the Acquisition Properties; and (iv) such other
      related documents and information as the Administrative Agent shall have
      reasonably requested.

     

    
      
        
        

      

      
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    (o) The
      Administrative Agent shall have received a certificate of a Responsible Officer
      of the Borrower certifying that immediately after giving effect to the
      Acquisition, the Parent Guarantor and its Subsidiaries will have no Debt or
      preferred stock outstanding other than the Indebtedness under this Agreement
      and
      other indebtedness listed on Schedule 9.02.

     

    (p) The
      Parent Guarantor shall have entered into one or more Swap Agreements with
      Approved Counterparties (collectively, the “Hedge”)
      relating to the Acquisition Properties which cover at least: (i) during the
      24-month period immediately following the Effective Date, the lesser of (A)
      90%
      of the reasonably anticipated projected production from the proved oil and
      gas
      interests of the Acquisition Properties, and (B) 100% of the of the reasonably
      anticipated projected production from the proved developed producing oil and
      gas
      interests of the Acquisition Properties; (ii) during the 18-month period
      immediately following the period described in clause (i), 80% of the reasonably
      anticipated projected production from the proved developed producing oil and
      gas
      interests of the Acquisition Properties; and (iii) during the 24-month period
      immediately following the period described in clause (ii), 50% of the reasonably
      anticipated projected production from the proved developed producing oil and
      gas
      interests of the Acquisition Properties, in each case calculated separately
      for
      each of oil and gas, and otherwise on terms and conditions reasonably acceptable
      to the Administrative Agent.

     

    (q) The
      Parent Guarantor shall have invested, as a common equity contribution in the
      Borrower for subsequent investment in ATN Michigan, LLC, cash in an amount
      of
      not less than 25% of the total purchase price to be paid for the Acquisition
      Properties in connection with the Acquisition.

     

    (r) The
      Administrative Agent shall have received evidence reasonably satisfactory to
      Administrative Agent of the payment in full of all amounts due under the
      Existing Credit Agreements, the termination of all commitments to lend
      thereunder and the release of all Liens securing such obligations and any other
      obligations secured thereby contemporaneously with the proceeds of the initial
      funding under this Agreement.

     

    (s) The
      Lenders shall have received, to the extent requested, all documentation and
      other information required by regulatory authorities under applicable “know your
      customer” and anti-money laundering rules and regulations, including the USA
      Patriot Act.

     

    (t) The
      Administrative Agent shall have received such other documents as the
      Administrative Agent or special counsel to the Administrative Agent may
      reasonably request.

     

    The
      Administrative Agent shall notify the Borrower and the Lenders of the Effective
      Date, and such notice shall be conclusive and binding. Notwithstanding the
      foregoing, the obligations of the Lenders to make Loans and of the Issuing
      Bank
      to issue Letters of Credit hereunder shall not become effective unless each
      of
      the foregoing conditions is satisfied (or waived pursuant to Section 12.02)
      at
      or prior to 2:00 p.m., New York, New York time, on August 1, 2007 (and, in
      the
      event such conditions are not so satisfied or waived, the Commitments shall
      terminate at such time).

     

    
      
        
        

      

      
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    Section
      6.02 Each
      Credit Event.
      The
      obligation of each Lender to make a Loan on the occasion of any Borrowing
      (including the initial funding), and of the Issuing Bank to issue, amend, renew
      or extend any Letter of Credit, is subject to the satisfaction of the following
      conditions:

     

    (a) At
      the
      time of and immediately after giving effect to such Borrowing or the issuance,
      amendment, renewal or extension of such Letter of Credit, as applicable, no
      Default shall have occurred and be continuing.

     

    (b) At
      the
      time of and immediately after giving effect to such Borrowing or the issuance,
      amendment, renewal or extension of such Letter of Credit, as applicable, no
      Material Adverse Effect shall have occurred; provided that with respect to
      the
      initial funding on the Effective Date, the condition precedent shall be that
      no
      Closing Date MAE shall have occurred.

     

    (c) The
      representations and warranties of the Loan Parties set forth in this Agreement
      and in the other Loan Documents shall be true and correct on and as of the
      date
      of such Borrowing or the date of issuance, amendment, renewal or extension
      of
      such Letter of Credit, as applicable, except to the extent any such
      representations and warranties are expressly limited to an earlier date, in
      which case, on and as of the date of such Borrowing or the date of issuance,
      amendment, renewal or extension of such Letter of Credit, as applicable, such
      representations and warranties shall continue to be true and correct as of
      such
      specified earlier date; provided that with respect to the initial funding on
      the
      Effective Date, no Loan Party will be required to make the representation
      contained in Section 7.04(b) and the only representations (and related Defaults)
      relating to the Acquisition Properties the making of which shall be a condition
      precedent under this Section 6.02(c) on the Effective Date shall be those
      representations contained in Sections 7.01, 7.02, 7.03, 7.07(a), 7.08, 7.09
      and
      7.23.

     

    (d) The
      making of such Loan or the issuance, amendment, renewal or extension of such
      Letter of Credit, as applicable, would not conflict with, or cause any Lender
      or
      the Issuing Bank to violate or exceed, any applicable Governmental Requirement,
      and no Change in Law shall have occurred, and no litigation shall be pending
      or
      threatened, which does or, with respect to any threatened litigation, seeks
      to,
      enjoin, prohibit or restrain, the making or repayment of any Loan, the issuance,
      amendment, renewal, extension or repayment of any Letter of Credit or any
      participations therein or the consummation of the transactions contemplated
      by
      this Agreement or any other Loan Document.

     

    (e) The
      receipt by the Administrative Agent of a Borrowing Request in accordance with
      Section 2.03 or a request for a Letter of Credit in accordance with Section
      2.08(b), as applicable.

     

    Each
      Borrowing and each issuance, amendment, renewal or extension of any Letter
      of
      Credit shall be deemed to constitute a representation and warranty by the Parent
      Guarantor and the Borrower on the date thereof as to the matters specified
      in
      Section 6.02(a) through (e).

     

    ARTICLE
      VII

    Representations
      and Warranties

     

    The
      Parent Guarantor and the Borrower represent and warrant to the Lenders
      that:

     

    Section
      7.01 Organization;
      Powers.
      Each of
      the Parent Guarantor, the Borrower and each of their Subsidiaries is duly
      organized, validly existing and in good standing under the laws of the
      jurisdiction of its organization, has all requisite power and authority, and
      has
      all material governmental licenses, authorizations, consents and approvals
      necessary, to own its assets and to carry on its business as now conducted,
      and
      is qualified to do business in, and is in good standing in, every jurisdiction
      where such qualification is required, except where failure to have such power,
      authority, licenses, authorizations, consents, approvals and qualifications
      could not reasonably be expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
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    Section
      7.02 Authority;
      Enforceability.
      The
      Transactions to which it is a party are within each Loan Party’s corporate
      powers and have been duly authorized by all necessary corporate and, if
      required, member action. Each Loan Document and each Acquisition Document to
      which an Loan Party is a party has been duly executed and delivered by it and
      constitutes a legal, valid and binding obligation of such Loan Party, as
      applicable, enforceable in accordance with its terms, subject to applicable
      bankruptcy, insolvency, reorganization, moratorium or other laws affecting
      creditors’ rights generally and subject to general principles of equity,
      regardless of whether considered in a proceeding in equity or at
      law.

     

    Section
      7.03 Approvals;
      No
      Conflicts.
      The
      Transactions (a) do not require any consent or approval of, registration or
      filing with, or any other action by, any Governmental Authority or any other
      third Person, nor is any such consent, approval, registration, filing or other
      action necessary for the validity or enforceability of any Loan Document or
      the
      consummation of the transactions contemplated thereby, except such as have
      been
      obtained or made and are in full force and effect other than (i) the recording
      and filing of the Security Instruments as required by this Agreement and (ii)
      those third party approvals or consents which, if not made or obtained, would
      not cause a Default hereunder, could not reasonably be expected to have a
      Material Adverse Effect or do not have an adverse effect on the enforceability
      of the Loan Documents, (b) will not violate any applicable law or regulation
      or
      the charter, by-laws or other organizational documents of any Loan Party or
      any
      order of any Governmental Authority, (c) will not violate or result in a default
      under any indenture, agreement or other instrument binding upon any Loan Party
      or its Properties, or give rise to a right thereunder to require any payment
      to
      be made by any Loan Party and (d) will not result in the creation or imposition
      of any Lien on any Property of any Loan Party (other than the Liens created
      by
      the Loan Documents or permitted under Section 9.03).

     

    Section
      7.04 Financial
      Condition; No Material Adverse Change.

     

    (a) The
      Parent Guarantor has heretofore furnished to the Lenders (i) combined and
      consolidated balance sheets as of December 31, 2006 and 2005, and the related
      combined and consolidated statements of income, comprehensive income, equity,
      and cash flows for the year ended December 31, 2006, the three month period
      ended December 31, 2005 and the years ended September 30, 2005 and 2004,
      certified by its independent public accountants; and (ii) consolidated balance
      sheet and the related consolidated statements of income, comprehensive income,
      equity, and cash flows for the fiscal quarter ended March 31, 2007, certified
      by
      its chief financial officer. Such financial statements present fairly, in all
      material respects, the combined or consolidated, as applicable, financial
      position and results of operations and cash flows of the Parent Guarantor and
      its Consolidated Subsidiaries as of such dates and for such periods in
      accordance with GAAP, subject to year-end audit adjustments and the absence
      of
      footnotes in the case of the unaudited quarterly financial
      statements.

     

    (b) The
      Parent Guarantor has heretofore furnished to the Lenders the unaudited
      consolidated balance sheet and statements of earnings and cash flows for the
      Acquisition Properties for the three month period ending March 31, 2007. To
      the
      best of the Parent Guarantor’s knowledge, such financial statements present
      fairly, in all material respects, the financial position of the Acquisition
      Properties as of such date and for such period in accordance with GAAP, subject
      to normal recurring year-end audit adjustments and the absence of
      footnotes).

     

    
      
        
        

      

      
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    (c) Since
      December 31, 2006, (i) there has been no event, development or circumstance
      that
      has had or could reasonably be expected to have a Material Adverse Effect and
      (ii) the business of the Loan Parties has been conducted only in the ordinary
      course consistent with past business practices.

     

    (d) No
      Loan
      Party or any Consolidated Subsidiary has on the date hereof any material Debt
      (including Disqualified Capital Stock) or any contingent liabilities,
      off-balance sheet liabilities or partnerships, liabilities for taxes, unusual
      forward or long-term commitments or unrealized or anticipated losses from any
      unfavorable commitments, except as referred to or reflected or provided for
      in
      the Financial Statements.

     

    Section
      7.05 Litigation.

     

    (a) Except
      as
      set forth on Schedule 7.05, there are no actions, suits, investigations or
      proceedings by or before any arbitrator or Governmental Authority pending
      against or affecting the Parent Guarantor or any Subsidiary (i) as to which
      there is a reasonable possibility of an adverse determination that, if adversely
      determined, could reasonably be expected, individually or in the aggregate,
      to
      result in a Material Adverse Effect or (ii) that involve any Loan Document
      or
      the Transactions.

     

    (b) Since
      the
      date of this Agreement, there has been no change in the status of the matters
      disclosed in Schedule 7.05 that, individually or in the aggregate, has
      resulted in, or materially increased the likelihood of, a Material Adverse
      Effect.

     

    Section
      7.06 Environmental
      Matters.
      Except
      for such matters as set forth on Schedule 7.06 or that, individually or in
      the
      aggregate, could not reasonably be expected to have a Material Adverse
      Effect:

     

    (a) Neither
      any Property of the Borrower or any Subsidiary nor the operations conducted
      thereon violate any order or requirement of any court or Governmental Authority
      or any Environmental Laws.

     

    (b) Without
      limitation of clause (a) above, no Property of the Borrower or any
      Subsidiary nor the operations currently conducted thereon or, to the best
      knowledge of any Loan Party, by any prior owner or operator of such Property
      or
      operation, are in violation of or subject to any existing, pending or threatened
      action, suit, investigation, inquiry or proceeding by or before any court or
      Governmental Authority or to any remedial obligations under Environmental
      Laws.

     

    (c) All
      notices, permits, licenses or similar authorizations, if any, required to be
      obtained or filed in connection with the operation or use of any and all
      Property of the Borrower and each Subsidiary, including without limitation
      past
      or present treatment, storage, disposal or release of a Hazardous Material
      or
      solid waste into the environment, have been duly obtained or filed, and the
      Borrower and each Subsidiary are in compliance with the terms and conditions
      of
      all such notices, permits, licenses and similar authorizations.

     

    (d) All
      Hazardous Materials, solid waste, and oil and gas exploration and production
      wastes, if any, generated at any and all Property of the Borrower or any
      Subsidiary have in the past been transported, treated and disposed of in
      accordance with Environmental Laws and so as not to pose an imminent and
      substantial endangerment to public health or welfare or the environment, and,
      to
      the best knowledge of the Loan Parties, all such transport carriers and
      treatment and disposal facilities have been and are operating in compliance
      with
      Environmental Laws and so as not to pose an imminent and substantial
      endangerment to public health or welfare or the environment, and are not the
      subject of any existing, pending or threatened action, investigation or inquiry
      by any Governmental Authority in connection with any Environmental
      Laws.

     

    
      
        
        

      

      
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    (e) The
      Borrower has taken all steps reasonably necessary to determine and have
      determined that no Hazardous Materials, solid waste, or oil and gas exploration
      and production wastes, have been disposed of or otherwise Released and there
      has
      been no threatened Release of any Hazardous Materials on or to any Property
      of
      the Borrower or any Subsidiary except in compliance with Environmental Laws
      and
      so as not to pose an imminent and substantial endangerment to public health
      or
      welfare or the environment.

     

    (f) To
      the
      extent applicable, all Property of the Borrower and each Subsidiary currently
      satisfies all design, operation, and equipment requirements imposed by the
      OPA
      or scheduled as of the Closing Date to be imposed by OPA during the term of
      this
      Agreement, and the Borrower does not have any reason to believe that such
      Property, to the extent subject to OPA, will not be able to maintain compliance
      with the OPA requirements during the term of this Agreement.

     

    (g) Neither
      the Borrower nor any Subsidiary has any known contingent liability in connection
      with any Release or threatened Release of any oil, Hazardous Material or solid
      waste into the environment.

     

    Section
      7.07 Compliance
      with the Laws and Agreements; No Defaults.

     

    (a) Each
      of
      the Parent Guarantor and each Subsidiary is in compliance with all Governmental
      Requirements applicable to it or its Property and all agreements and other
      instruments binding upon it or its Property, and possesses all licenses,
      permits, franchises, exemptions, approvals and other governmental authorizations
      necessary for the ownership of its Property and the conduct of its business,
      except where the failure to do so, individually or in the aggregate, could
      not
      reasonably be expected to result in a Material Adverse Effect.

     

    (b) Neither
      the Parent Guarantor nor any Subsidiary is in default nor has any event or
      circumstance occurred which, but for the expiration of any applicable grace
      period or the giving of notice, or both, would constitute a default or would
      require the Parent Guarantor or a Subsidiary to Redeem or make any offer to
      Redeem under any indenture, note, credit agreement or instrument pursuant to
      which any Material Indebtedness is outstanding or by which the Parent Guarantor
      or any Subsidiary or any of their Properties is bound.

     

    (c) No
      Default has occurred and is continuing.

     

    Section
      7.08 Investment
      Company Act.
      Neither
      the Parent Guarantor nor any Subsidiary is an “investment company” or a company
“controlled” by an “investment company,” within the meaning of, or subject to
      regulation under, the Investment Company Act of 1940, as amended.

     

    Section
      7.09 Use
      of
      Loans and Letters of Credit.
      The
      proceeds of the Loans and the Letters of Credit shall be used (a) to provide
      working capital for exploration and production operations, (b) to refinance
      existing Debt of the Borrower under the Existing Credit Agreement, (c) to
      provide funding for general corporate purposes of the Borrower and its
      Subsidiaries, including a portion of the purchase price of the Acquisition
      and
      the acquisition of exploration and production properties and to make capital
      contributions to the Partnerships (but such capital contributions shall not
      be
      used for the purpose of funding Partnership distributions) and (d) for any
      distribution advances of Available Cash, provided that if the Borrowing Base
      Utilization Percentage is equal to or exceeds 90% before or after giving effect
      to the requested Loan or Letter of Credit, then no proceeds of any Loan or
      any
      Letter of Credit may be used to fund Restricted Payments under Section
      9.04(a)(iii). No Loan Party is engaged principally, or as one of its or their
      important activities, in the business of extending credit for the purpose,
      whether immediate, incidental or ultimate, of buying or carrying margin stock
      (within the meaning of Regulation T, U or X of the Board). No part of the
      proceeds of any Loan or Letter of Credit will be used for any purpose which
      violates the provisions of Regulations T, U or X of the Board.

     

    
      
        
        

      

      
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    Section
      7.10 Taxes.
      Each of
      the Parent Guarantor and its Subsidiaries has timely filed or caused to be
      filed
      all tax returns and reports required to have been filed and has paid or caused
      to be paid all taxes required to have been paid by it, except (a) taxes that
      are
      being contested in good faith by appropriate proceedings and for which the
      Parent Guarantor or such Subsidiary, as applicable, has set aside on its books
      adequate reserves in accordance with GAAP or (b) to the extent that the failure
      to do so could not reasonably be expected to result in a Material Adverse
      Effect. The charges, accruals and reserves on the books of the Parent Guarantor
      and its Subsidiaries in respect of taxes and other governmental charges are,
      in
      the reasonable opinion of the Parent Guarantor, adequate. No tax Lien has been
      filed and no claim is being asserted with respect to any such tax or other
      such
      governmental charge.

     

    Section
      7.11 ERISA.
      Except
      as set forth on Schedule 7.11, 

     

    (a) The
      Parent Guarantor, the Subsidiaries and each ERISA Affiliate have complied in
      all
      material respects with ERISA and, where applicable, the Code regarding each
      Plan.

     

    (b) Each
      Plan
      is, and has been, maintained in substantial compliance with ERISA and, where
      applicable, the Code.

     

    (c) No
      act,
      omission or transaction has occurred which could result in imposition on the
      Parent Guarantor, any Subsidiary or any ERISA Affiliate (whether directly or
      indirectly) of (i) either a civil penalty assessed pursuant to subsections
      (c),
      (i) or (l) of section 502 of ERISA or a tax imposed pursuant to Chapter 43
      of
      Subtitle D of the Code or (ii) breach of fiduciary duty liability damages
      under section 409 of ERISA.

     

    (d) No
      Plan
      (other than a defined contribution plan) or any trust created under any such
      Plan has been terminated since September 2, 1974. No liability to the PBGC
      (other than for the payment of current premiums which are not past due) by
      the
      Parent Guarantor, any Subsidiary or any ERISA Affiliate has been or is expected
      by the Parent Guarantor, any Subsidiary or any ERISA Affiliate to be incurred
      with respect to any Plan. No ERISA Event with respect to any Plan has
      occurred.

     

    (e) Full
      payment when due has been made of all amounts which the Parent Guarantor, the
      Subsidiaries or any ERISA Affiliate is required under the terms of each Plan
      or
      applicable law to have paid as contributions to such Plan as of the date hereof,
      and no accumulated funding deficiency (as defined in section 302 of ERISA and
      section 412 of the Code), whether or not waived, exists with respect to any
      Plan.

     

    (f) The
      actuarial present value of the benefit liabilities under each Plan which is
      subject to Title IV of ERISA does not, as of the end of the Parent
      Guarantor’s most recently ended fiscal year, exceed the current value of the
      assets (computed on a plan termination basis in accordance with Title IV of
      ERISA) of such Plan allocable to such benefit liabilities. The term “actuarial
      present value of the benefit liabilities” shall have the meaning specified in
      section 4041 of ERISA.

     

    
      
        
        

      

      
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    (g) Neither
      the Parent Guarantor, the Subsidiaries nor any ERISA Affiliate sponsors,
      maintains, or contributes to an employee welfare benefit plan, as defined in
      section 3(1) of ERISA, including, without limitation, any such plan maintained
      to provide benefits to former employees of such entities, that may not be
      terminated by the Parent Guarantor, a Subsidiary or any ERISA Affiliate in
      its
      sole discretion at any time without any material liability.

     

    (h) Neither
      the Parent Guarantor, the Subsidiaries nor any ERISA Affiliate sponsors,
      maintains or contributes to, or has at any time in the six-year period preceding
      the date hereof sponsored, maintained or contributed to, any Multiemployer
      Plan.

     

    (i) Neither
      the Parent Guarantor, the Subsidiaries nor any ERISA Affiliate is required
      to
      provide security under section 401(a)(29) of the Code due to a Plan amendment
      that results in an increase in current liability for the Plan.

     

    Section
      7.12 Disclosure;
      No Material Misstatements.
      The
      Parent Guarantor and the Borrower have disclosed to the Administrative Agent
      and
      the Lenders all agreements, instruments and corporate or other restrictions
      to
      which it or any of its Subsidiaries is subject, and all other matters known
      to
      it, that, individually or in the aggregate, could reasonably be expected to
      result in a Material Adverse Effect. Neither the Information Memorandum nor
      any
      of the other reports, financial statements, certificates or other information
      furnished by or on behalf of the Parent Guarantor or the Borrower or any of
      its
      Subsidiaries to the Administrative Agent or any Lender or any of their
      Affiliates in connection with the negotiation of this Agreement or any other
      Loan Document or delivered hereunder or under any other Loan Document (as
      modified or supplemented by other information so furnished) contains any
      material misstatement of fact or omits to state any material fact necessary
      to
      make the statements therein, in the light of the circumstances under which
      they
      were made, not misleading; provided that, with respect to projected financial
      information, the Parent Guarantor and the Borrower represent only that such
      information was prepared in good faith based upon assumptions believed to be
      reasonable at the time; provided
      that the
      representations regarding Information and Projections in each case, with respect
      to the Acquisition Properties, shall be limited to the best of the Parent
      Guarantor’s knowledge. 

     

    Section
      7.13 Insurance.
      The
      Parent Guarantor has, and has caused all its Subsidiaries to have, (a) all
      insurance policies sufficient for the compliance by each of them with all
      material Governmental Requirements and all material agreements and (b) insurance
      coverage in at least amounts and against such risk (including, without
      limitation, public liability) that are usually insured against by companies
      similarly situated and engaged in the same or a similar business for the assets
      and operations of the Parent Guarantor and its Subsidiaries. The Administrative
      Agent and the Lenders have been named as additional insureds in respect of
      such
      liability insurance policies and the Administrative Agent has been named as
      loss
      payee with respect to Property loss insurance.

     

    Section
      7.14 Restriction
      on Liens.
      Neither
      the Parent Guarantor nor any of the Subsidiaries is a party to any material
      agreement or arrangement (other than Capital Leases creating Liens permitted
      by
      Section 9.03(c), but then only on the Property subject of such Capital Lease),
      or subject to any order, judgment, writ or decree, which either restricts or
      purports to restrict its ability to grant Liens to the Administrative Agent
      and
      the Lenders on or in respect of their Properties to secure the Indebtedness
      and
      the Loan Documents.

     

    Section
      7.15 Subsidiaries.

     

    (a) Except
      as
      set forth on Schedule 7.15 or as disclosed in writing to the Administrative
      Agent (which shall promptly furnish a copy to the Lenders), which shall be
      a
      supplement to Schedule 7.15, the Parent Guarantor has no Subsidiaries, each
      Subsidiary is a Wholly-Owned Subsidiary and the Parent Guarantor has no Foreign
      Subsidiaries. Schedule 7.15 lists all the Partnerships owned by the Borrower
      or
      its Subsidiaries and their partnership interests in each such Partnership.
      Schedule 7.15 identifies each Subsidiary which is an Unrestricted Subsidiary.
      Neither the Parent Guarantor nor any Subsidiary has any Foreign Subsidiaries.
      As
      of the Effective Date, the Borrower is the only directly owned Subsidiary of
      the
      Parent Guarantor.

     

    
      
        
        

      

      
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    (b) The
      Borrower and the Guarantor’s Equity Interests in the Partnerships are free and
      clear of any and all Liens, claims and encumbrances including any preferential
      rights to purchase and consents to assignments.

     

    (c) The
      amount and type of the authorized Equity Interests of each of the Persons listed
      on Schedule 7.15 are accurately described thereon, and all such Equity Interests
      that are issued and outstanding have been validly issued and are fully paid
      and
      nonassessable and are owned by and issued to the Person listed as their owner
      on
      Schedule 7.15. The Borrower and each Guarantor have good and marketable title
      to
      all the Equity Interests of the Subsidiaries (except for the Unrestricted
      Entities) issued to it, free and clear of all Liens, and all such Equity
      Interests have been duly and validly issued and are fully paid and nonassessable
      (except to the extent general partnership interests are assessable under
      applicable law).

     

    Section
      7.16 Location
      of Business and Offices.
      The
      Parent Guarantor’s jurisdiction of organization is Delaware; the name of the
      Parent Guarantor as listed in the public records of Delaware is Atlas Energy
      Resources, LLC; and the organizational identification number of the Parent
      Guarantor in Delaware is 418-0472 (or, in each case, as set forth in a notice
      delivered to the Administrative Agent pursuant to Section 8.01(l) in accordance
      with Section 12.01). The Borrower’s jurisdiction of organization is Delaware;
      the name of the Borrower as listed in the public records of Delaware is Atlas
      Energy Operating Company, LLC; and the organizational identification number
      of
      the Borrower in Delaware is 418-4160 (or, in each case, as set forth in a notice
      delivered to the Administrative Agent pursuant to Section 8.01(l) in accordance
      with Section 12.01). The Parent Guarantor’s and the Borrower’s principal place
      of business and chief executive offices are located at the address specified
      in
      Section 12.01 (or as set forth in a notice delivered pursuant to Section 8.01(l)
      and Section 12.01(c)). Each other Loan Parties’ jurisdiction of organization,
      name as listed in the public records of its jurisdiction of organization,
      organizational identification number in its jurisdiction of organization, and
      the location of its principal place of business and chief executive office
      is
      stated on Schedule 7.15 (or as set forth in a notice delivered pursuant to
      Section 8.01(l)).

     

    Section
      7.17 Properties;
      Titles, Etc.

     

    (a) Each
      Loan
      Party, directly or indirectly through is percentage ownership of the
      Partnerships, good and defensible title to the Oil and Gas Properties evaluated
      in the most recently delivered Reserve Report and good title to all its personal
      Properties, in each case, free and clear of all Liens except Liens permitted
      by
      Section 9.03. After giving full effect to the Excepted Liens, each Loan Party,
      directly or indirectly through is percentage ownership of the Partnerships,
      specified as the owner owns the net interests in production attributable to
      the
      Hydrocarbon Interests as reflected in the most recently delivered Reserve
      Report, and the ownership of such Properties shall not in any material respect
      obligate the Parent Guarantor or such Subsidiary to bear the costs and expenses
      relating to the maintenance, development and operations of each such Property
      in
      an amount in excess of the working interest of each Property set forth in the
      most recently delivered Reserve Report that is not offset by a corresponding
      proportionate increase in the Parent Guarantor’s or such Subsidiary’s net
      revenue interest in such Property; provided that to the extent the Borrower
      or a
      Guarantor is a general partner of a Partnership, it is liable for all of the
      costs and expenses attributable to such Partnership’s interest, but only
      entitled to its percentage interest in such Partnership’s net revenues. All
      information contained in the most recently delivered Reserve Report is true
      and
      correct in all material respects as of the date thereof.

     

    
      
        
        

      

      
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    (b) All
      material leases and agreements necessary for the conduct of the business of
      the
      Parent Guarantor and the Subsidiaries are valid and subsisting, in full force
      and effect, and there exists no default or event or circumstance which with
      the
      giving of notice or the passage of time or both would give rise to a default
      under any such lease or leases, which could reasonably be expected to result
      in
      a Material Adverse Effect.

     

    (c) The
      rights and Properties presently owned, leased or licensed by the Parent
      Guarantor and the Subsidiaries including, without limitation, all easements
      and
      rights of way, include all rights and Properties necessary to permit the Parent
      Guarantor and the Subsidiaries to conduct their business in all material
      respects in the same manner as its business has been conducted prior to the
      date
      hereof.

     

    (d) All
      of
      the Properties of the Parent Guarantor and the Subsidiaries which are reasonably
      necessary for the operation of their businesses are in good working condition
      and are maintained in accordance with prudent business standards.

     

    (e) The
      Parent Guarantor and each Subsidiary owns, or is licensed to use, all
      trademarks, tradenames, copyrights, patents and other intellectual Property
      material to its business, and the use thereof by the Parent Guarantor and such
      Subsidiary does not infringe upon the rights of any other Person, except for
      any
      such infringements that, individually or in the aggregate, could not reasonably
      be expected to result in a Material Adverse Effect. The Parent Guarantor and
      its
      Subsidiaries either own or have valid licenses or other rights to use all
      databases, geological data, geophysical data, engineering data, seismic data,
      maps, interpretations and other technical information used in their businesses
      as presently conducted, subject to the limitations contained in the agreements
      governing the use of the same, which limitations are customary for companies
      engaged in the business of the exploration and production of Hydrocarbons,
      with
      such exceptions as could not reasonably be expected to have a Material Adverse
      Effect.

     

    Section
      7.18 Maintenance
      of Properties.
      Except
      for such acts or failures to act as could not be reasonably expected to have
      a
      Material Adverse Effect, the Oil and Gas Properties (and Properties unitized
      therewith) of the Loan Parties and their Subsidiaries have been maintained,
      operated and developed in a good and workmanlike manner and in conformity with
      all Governmental Requirements and in conformity with the provisions of all
      leases, subleases or other contracts comprising a part of the Hydrocarbon
      Interests and other contracts and agreements forming a part of the Oil and
      Gas
      Properties. Specifically in connection with the foregoing, except for those
      as
      could not be reasonably expected to have a Material Adverse Effect, (a) no
      Oil
      and Gas Property is subject to having allowable production reduced below the
      full and regular allowable (including the maximum permissible tolerance) because
      of any overproduction (whether or not the same was permissible at the time)
      and
      (b) none of the wells comprising a part of the Oil and Gas Properties (or
      Properties unitized therewith) is deviated from the vertical more than the
      maximum permitted by Governmental Requirements, and such wells are, in fact,
      bottomed under and are producing from, and the well bores are wholly within,
      the
      Oil and Gas Properties (or in the case of wells located on Properties unitized
      therewith, such unitized Properties). All pipelines, wells, gas processing
      plants, platforms and other material improvements, fixtures and equipment owned
      in whole or in part by the Parent Guarantor or any of its Subsidiaries that
      are
      necessary to conduct normal operations are being maintained in a state adequate
      to conduct normal operations, and with respect to such of the foregoing which
      are operated by the Parent Guarantor or any of its Subsidiaries, in a manner
      consistent with the Parent Guarantor’s or its Subsidiaries’ past practices
      (other than those the failure of which to maintain in accordance with this
      Section 7.18 could not reasonably be expect to have a Material Adverse
      Effect).

     

    
      
        
        

      

      
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    Section
      7.19 Gas
      Imbalances,
      Prepayments.
      As of
      the date hereof, except as set forth on Schedule 7.19 or on the most recent
      certificate delivered pursuant to Section 8.12(c), on a net basis there are
      no
      gas imbalances, take or pay or other prepayments which would require the Parent
      Guarantor or any of its Subsidiaries to deliver Hydrocarbons produced from
      the
      Oil and Gas Properties at some future time without then or thereafter receiving
      full payment therefor exceeding three and one-half percent (3.5%) of monthly
      production in the aggregate.

     

    Section
      7.20 Marketing
      of Production.
      Except
      for contracts listed and in effect on the date hereof on Schedule 7.20, and
      thereafter either disclosed in writing to the Administrative Agent or included
      in the most recently delivered Reserve Report (with respect to all of which
      contracts the Parent Guarantor represents that it or its Subsidiaries are
      receiving a price for all production sold thereunder which is computed
      substantially in accordance with the terms of the relevant contract and are
      not
      having deliveries curtailed substantially below the subject Property’s delivery
      capacity except as disclosed in Schedule 7.20 or the most recently delivered
      Reserve Report), no material agreements exist which are not cancelable on 60
      days notice or less without penalty or detriment for the sale of production
      from
      the Parent Guarantor’s or its Subsidiaries’ Hydrocarbons (including, without
      limitation, calls on or other rights to purchase, production, whether or not
      the
      same are currently being exercised) that (a) pertain to the sale of production
      at a fixed price and (b) have a maturity or expiry date of longer than six
      (6)
      months from the date hereof.

     

    Section
      7.21 Swap
      Agreements.
      Schedule 7.21, as of the date hereof, and after the date hereof, each report
      required to be delivered by the Parent Guarantor pursuant to Section 8.01(d),
      sets forth, a true and complete list of all Swap Agreements of the Parent
      Guarantor, each Subsidiary and the Partnerships, the material terms thereof
      (including the type, term, effective date, termination date and notional amounts
      or volumes), the net mark to market value thereof, all credit support agreements
      relating thereto (including any margin required or supplied) and the
      counterparty to each such agreement.

     

    Section
      7.22 Solvency.
      Each
      Loan Party is, and after giving effect to the Acquisition and the incurrence
      of
      all Debt and obligations being incurred in connection herewith and therewith
      will be and will continue to be, Solvent.

     

    Section
      7.23 Acquisition.
      The
      copies of the Acquisition Documents previously delivered by the Parent Guarantor
      to the Administrative Agent are true, accurate and complete and have not been
      amended or modified in any manner, other than pursuant to amendments or
      modifications previously delivered to the Administrative Agent. The
      representations made in the Acquisition Agreement concerning the Acquisition
      Properties are true and correct in all material respects.

     

    ARTICLE
      VIII

    Affirmative
      Covenants

     

    Until
      the
      Commitments have expired or been terminated and the principal of and interest
      on
      each Loan and all fees payable hereunder and all other amounts payable under
      the
      Loan Documents shall have been paid in full and all Letters of Credit shall
      have
      expired or terminated and all LC Disbursements shall have been reimbursed,
      the
      Parent Guarantor and the Borrower covenant and agree with the Lenders
      that:

     

    Section
      8.01 Financial
      Statements; Other Information.
      The
      Parent Guarantor will furnish to the Administrative Agent and each
      Lender:

     

    (a) Annual
      Financial Statements.
      As soon
      as available, but in any event in accordance with then applicable law and not
      later than 100 days after the end of each fiscal year of the Parent Guarantor,
      its audited consolidated balance sheet and related statements of income,
      stockholders’ equity and cash flows as of the end of and for such year, setting
      forth in each case in comparative form the figures for the previous fiscal
      year,
      all reported on by independent public accountants of recognized national
      standing (without a “going concern” or like qualification or exception and
      without any qualification or exception as to the scope of such audit) to the
      effect that such consolidated financial statements present fairly in all
      material respects the financial condition and results of operations of the
      Parent Guarantor and its Consolidated Subsidiaries on a consolidated basis
      in
      accordance with GAAP consistently applied.

     

    
      
        
        

      

      
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    (b) Quarterly
      Financial Statements.
      As soon
      as available, but in any event in accordance with then applicable law and not
      later than 55 days after the end of each of the first three fiscal quarters
      of
      each fiscal year of the Parent Guarantor, its consolidated balance sheet and
      related statements of income, stockholders’ equity and cash flows as of the end
      of and for such fiscal quarter and the then elapsed portion of the fiscal year,
      setting forth in each case in comparative form the figures for the corresponding
      period or periods of (or, in the case of the balance sheet, as of the end of)
      the previous fiscal year, all certified by one of its Financial Officers as
      presenting fairly in all material respects the financial condition and results
      of operations of the Parent Guarantor and its Consolidated Subsidiaries on
      a
      consolidated basis in accordance with GAAP consistently applied, subject to
      normal year-end audit adjustments and the absence of footnotes.

     

    (c) Certificate
      of Financial Officer - Compliance.
      Concurrently with any delivery of financial statements under Section 8.01(a)
      or
      Section 8.01(b), a compliance certificate of a Financial Officer of the Parent
      Guarantor in substantially the form of Exhibit D hereto (i) certifying as to
      whether a Default has occurred and, if a Default has occurred, specifying the
      details thereof and any action taken or proposed to be taken with respect
      thereto and (ii) setting forth reasonably detailed calculations demonstrating
      compliance with Section 9.01.

     

    (d) Certificate
      of Financial Officer - Swap Agreements.
      Concurrently with the delivery of financial statements under Section 8.01(a)
      or
      Section 8.01(b), a certificate of a Financial Officer, in form and substance
      reasonably satisfactory to the Administrative Agent, setting forth as of a
      recent date, a true and complete list of all Swap Agreements of the Parent
      Guarantor, each Subsidiary and each Partnership, the material terms thereof
      (including the type, term, effective date, termination date and notional amounts
      or volumes and volumes attributable to Partnership production), the net
      mark-to-market value therefor, any new credit support agreements relating
      thereto not listed on Schedule 7.21, any margin required or supplied under
      any
      credit support document, and the counterparty to each such
      agreement.

     

    (e) Certificate
      of Insurer - Insurance Coverage.
      Concurrently with any delivery of financial statements under Section 8.01(a),
      a
      certificate of insurance coverage from each insurer with respect to the
      insurance required by Section 8.07, in form and substance satisfactory to the
      Administrative Agent, and, if requested by the Administrative Agent or any
      Lender, all copies of the applicable policies.

     

    (f) Other
      Accounting Reports.
      Promptly upon receipt thereof, a copy of each other report or letter (except
      standard and customary correspondence) submitted to the Parent Guarantor or
      any
      of its Subsidiaries by independent accountants in connection with any annual,
      interim or special audit made by them of the books of the Parent Guarantor
      or
      any such Subsidiary, and a copy of any response by the Parent Guarantor or
      any
      such Subsidiary, or the board of directors of the Parent Guarantor or any such
      Subsidiary, to such letter or report.

     

    
      
        
        

      

      
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    (g) SEC
      and Other Filings; Reports to Shareholders.
      Promptly after the same become publicly available, copies of all periodic and
      other reports, proxy statements and other materials filed by the Parent
      Guarantor or any Subsidiary with the SEC, or with any national securities
      exchange, or distributed by the Parent Guarantor to its shareholders generally,
      as the case may be. Documents required to be delivered pursuant to Section
      8.01(a) and Section 8.01(b) and this Section 8.01(g) may be delivered
      electronically and if so delivered, shall be deemed to have been delivered
      on
      the date on which the Parent Guarantor posts such documents to EDGAR (or such
      other free, publicly-accessible internet database that may be established and
      maintained by the SEC as a substitute for or successor to EDGAR).

     

    (h) Notices
      Under Material Instruments.
      Promptly after the furnishing thereof, copies of any financial statement, report
      or notice furnished to or by any Person pursuant to the terms of any indenture,
      loan or credit or other similar agreement, other than this Agreement and not
      otherwise required to be furnished to the Lenders pursuant to any other
      provision of this Section 8.01.

     

    (i) Lists
      of Purchasers.
      Promptly upon written request of the Administrative Agent, a list of Persons
      purchasing Hydrocarbons from the Borrower or any Subsidiary accounting for
      at
      least 85% of the revenues resulting from the sale of all Hydrocarbons in the
      one-year period prior to the “as of” date of such Reserve Report.

     

    (j) Notice
      of Sales of Oil and Gas Properties.
      Within
      30 days of the end of each calendar month, a list of all Oil or Gas Properties
      or any Equity Interests in any Subsidiary disposed if the aggregate value of
      all
      such Properties and Equity Interests so disposed of since the last Scheduled
      Redetermination Date exceeds $35,000,000.

     

    (k) Notice
      of Casualty Events.
      Prompt
      written notice, and in any event within three Business Days, after the Borrower
      obtains knowledge thereof, of the occurrence of any Casualty Event or the
      commencement of any action or proceeding that could reasonably be expected
      to
      result in a Casualty Event.

     

    (l) Information
      Regarding the Loan Parties.
      Prompt
      written notice (and in any event within ten (10) Business Days prior thereto)
      of
      any change (i) in any Loan Party’s corporate name or in any trade name used to
      identify such Person in the conduct of its business or in the ownership of
      its
      Properties, (ii) in the location of any Loan Party’s chief executive office or
      principal place of business, (iii) in any Loan Party’s identity or corporate
      structure or in the jurisdiction in which such Person is incorporated or formed,
      (iv) in any Loan Party’s jurisdiction of organization or such Person’s
      organizational identification number in such jurisdiction of organization,
      and
      (v) in any Loan Party’s federal taxpayer identification number.

     

    (m) Production
      Report and Lease Operating Statements.
      Promptly upon written request of the Administrative Agent, a report setting
      forth, for the current fiscal year to date, the volume of production and sales
      attributable to production (and the prices at which such sales were made and
      the
      revenues derived from such sales) from the Oil and Gas Properties, and setting
      forth the related ad valorem, severance and production taxes and lease operating
      expenses attributable thereto and incurred.

     

    (n) Notices
      of Certain Changes.
      Promptly, but in any event within five (5) Business Days after the execution
      thereof, copies of any amendment, modification or supplement to the certificate
      or articles of incorporation, by-laws, any preferred stock designation or any
      other organic document of the Parent Guarantor or any Loan Party.

     

    
      
        
        

      

      
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    (o) Notices
      Relating to Acquisition.
      In the
      event that after the Effective Date: (i) any material matter being disputed
      in
      accordance with the terms of the Acquisition Documents is resolved, (ii) the
      Parent Guarantor or any Loan Party asserts a claim for indemnification or such
      a
      claim is resolved or (iii) a Loan Party and the seller(s) calculate and agree
      upon the “closing statement” or “final closing statement” as contemplated by the
      Acquisition Documents, then, in each such case, the Borrower shall promptly
      give
      the Administrative Agent notice in reasonable detail of such
      circumstances.

     

    (p) Certificate
      of Financial Officer - Consolidating Information.
      If, at
      any time, any of the Subsidiaries of the Parent Guarantor are Unrestricted
      Subsidiaries, then concurrently with any delivery of financial statements under
      Section 8.01(a) or Section 8.01(b), a certificate of a Financial Officer setting
      forth consolidating spreadsheets that show all Unrestricted Subsidiaries and
      the
      eliminating entries, in such form as would be presentable to the auditors of
      the
      Parent Guarantor or other reconciliation of cash flows for such Unrestricted
      Subsidiaries.

     

    (q) Issuance
      of Senior Notes.
      In the
      event the Parent Guarantor or the Borrower intends to issue any Senior Notes,
      prior written notice of such intended offering therefor, the amount thereof
      and
      the anticipated date of closing and will furnish a copy of the preliminary
      offering memorandum (if any) and the final offering memorandum (if
      any).

     

    (r) Other
      Requested Information.
      Promptly following any request therefor, such other information regarding the
      operations, business affairs and financial condition of the Parent Guarantor
      or
      any Subsidiary (including, without limitation, any Plan or Multiemployer Plan
      and any reports or other information required to be filed under ERISA and such
      information about any Partnership), or compliance with the terms of this
      Agreement or any other Loan Document, as the Administrative Agent or any Lender
      may reasonably request.

     

    Section
      8.02 Notices
      of Material Events.
      The
      Parent Guarantor will furnish to the Administrative Agent prompt written notice
      of the following:

     

    (a) the
      occurrence of any Event of Default;

     

    (b) the
      filing or commencement of any action, suit, proceeding, investigation or
      arbitration by or before any arbitrator or Governmental Authority against the
      Parent Guarantor or any Subsidiary thereof not previously disclosed in writing
      to the Lenders or any material adverse development in any action, suit,
      proceeding, investigation or arbitration previously disclosed to the Lenders
      that, if adversely determined, could reasonably be expected to result in
      liability in excess of $25,000,000;

     

    (c) the
      occurrence of any ERISA Event that, alone or together with any other ERISA
      Events that have occurred, could reasonably be expected to result in liability
      of the Parent Guarantor and its Subsidiaries in an aggregate amount exceeding
      $10,000,000; and

     

    (d) any
      other
      development that results in, or could reasonably be expected to result in,
      a
      Material Adverse Effect.

     

    Each
      notice delivered under this Section 8.02 shall be accompanied by a statement
      of
      a Responsible Officer setting forth the details of the event or development
      requiring such notice and any action taken or proposed to be taken with respect
      thereto.

     

    Section
      8.03 Existence;
      Conduct of Business.
      The
      Parent Guarantor will, and will cause each Loan Party to, do or cause to be
      done
      all things necessary to preserve, renew and keep in full force and effect its
      legal existence and the rights, licenses, permits, privileges and franchises
      material to the conduct of its business and maintain, if necessary, its
      qualification to do business in each other jurisdiction in which the nature
      of
      the business conducted by it requires such qualification, except where the
      failure to so qualify could not reasonably be expected to have a Material
      Adverse Effect; provided that the foregoing shall not prohibit any merger,
      consolidation, liquidation or dissolution permitted under Section
      9.10.

     

    
      
        
        

      

      
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    Section
      8.04 Payment
      of Obligations.
      The
      Parent Guarantor will, and will cause each Subsidiary to, pay its obligations,
      including tax liabilities of the Parent Guarantor and all of its Subsidiaries
      before the same shall become delinquent or in default, except where (a) the
      validity or amount thereof is being contested in good faith by appropriate
      proceedings, (b) the Parent Guarantor or such Subsidiary has set aside on its
      books adequate reserves with respect thereto in accordance with GAAP and (c)
      the
      failure to make payment pending such contest could not reasonably be expected
      to
      result in a Material Adverse Effect or result in the seizure or levy of any
      material Property of the Parent Guarantor or any Subsidiary.

     

    Section
      8.05 Performance
      of Obligations under Loan Documents.
      The
      Borrower will pay the Loans according to the reading, tenor and effect thereof,
      and the Parent Guarantor will, and will cause each Subsidiary to, do and perform
      every act and discharge all of the obligations to be performed and discharged
      by
      them under the Loan Documents, including, without limitation, this Agreement,
      at
      the time or times and in the manner specified.

     

    Section
      8.06 Operation
      and Maintenance of Properties.
      The
      Parent Guarantor, at its own expense, will, and will cause each Subsidiary
      to:

     

    (a) operate
      its Oil and Gas Properties and other material Properties or cause such Oil
      and
      Gas Properties and other material Properties to be operated in a careful and
      efficient manner in accordance with the practices of the industry and in
      compliance with all applicable contracts and agreements and in compliance with
      all Governmental Requirements, including, without limitation, applicable pro
      ration requirements and Environmental Laws, and all applicable laws, rules
      and
      regulations of every other Governmental Authority from time to time constituted
      to regulate the development and operation of its Oil and Gas Properties and
      the
      production and sale of Hydrocarbons and other minerals therefrom, except, in
      each case, where the failure to comply could not reasonably be expected to
      have
      a Material Adverse Effect.

     

    (b) keep
      and
      maintain all Property material to the conduct of its business in good working
      order and condition, ordinary wear and tear excepted preserve, maintain and
      keep
      in good repair, working order and efficiency (ordinary wear and tear excepted)
      all of its material Oil and Gas Properties and other material Properties,
      including, without limitation, all equipment, machinery and facilities, except
      to the extent a portion of such Property is no longer capable of producing
      Hydrocarbons in economically reasonable amounts.

     

    (c) promptly
      pay and discharge, or make reasonable and customary efforts to cause to be
      paid
      and discharged, all delay rentals, royalties, expenses and indebtedness accruing
      under the leases or other agreements affecting or pertaining to its Oil and
      Gas
      Properties and will do all other things necessary to keep unimpaired their
      rights with respect thereto and prevent any forfeiture thereof or default
      thereunder.

     

    (d) promptly
      perform or make reasonable and customary efforts to cause to be performed,
      in
      accordance with industry standards, the obligations required by each and all
      of
      the assignments, deeds, leases, sub-leases, contracts and agreements affecting
      its interests in its Oil and Gas Properties and other material
      Properties.

     

    
      
        
        

      

      
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    (e) to
      the
      extent the Borrower is not the operator of any Property, the Borrower shall
      use
      reasonable efforts to cause the operator to comply with this Section
      8.06.

     

    Section
      8.07 Insurance.
      The
      Parent Guarantor will, and will cause each Subsidiary to, maintain, with
      financially sound and reputable insurance companies, insurance in such amounts
      and against such risks as are customarily maintained by companies engaged in
      the
      same or similar businesses operating in the same or similar locations. The
      loss
      payable clauses or provisions in said insurance policy or policies insuring
      any
      of the collateral for the Loans shall be endorsed in favor of and made payable
      to the Administrative Agent as its interests may appear and such policies shall
      name the Administrative Agent and the Lenders as “additional insureds” and
      provide that the insurer will endeavor to give at least 30 days prior notice
      of
      any cancellation to the Administrative Agent.

     

    Section
      8.08 Books
      and Records; Inspection Rights.
      The
      Parent Guarantor will, and will cause each Subsidiary to, keep proper books
      of
      record and account in which full, true and correct entries are made of all
      dealings and transactions in relation to its business and activities. The Parent
      Guarantor will, and will cause each Subsidiary to, permit any representatives
      designated by the Administrative Agent or any Lender, upon reasonable prior
      notice, to visit and inspect its Properties, to examine and make extracts from
      its books and records, and to discuss its affairs, finances and condition with
      its officers and independent accountants, all at such reasonable times during
      normal business hours and as often as reasonably requested.

     

    Section
      8.09 Compliance
      with Laws.
      The
      Parent Guarantor will, and will cause each Subsidiary to, comply with all laws,
      rules, regulations and orders of any Governmental Authority applicable to it
      or
      its Property, except where the failure to do so, individually or in the
      aggregate, could not reasonably be expected to result in a Material Adverse
      Effect.

     

    Section
      8.10 Environmental
      Matters.

     

    (a) The
      Parent Guarantor shall
      at
      its sole expense: (i) comply, and shall cause its Properties and operations
      and
      each Subsidiary and each Subsidiary’s Properties and operations to comply, with
      all applicable Environmental Laws, the breach of which could be reasonably
      expected to have a Material Adverse Effect; (ii) not Release or threaten to
      Release, and shall cause each Subsidiary not to Release or threaten to Release,
      any Hazardous Material on, under, about or from any of the Parent Guarantor’s or
      its Subsidiaries’ Properties or any other property offsite the Property to the
      extent caused by the Parent Guarantor’s or any of its Subsidiaries’ operations
      except in compliance with applicable Environmental Laws, the Release or
      threatened Release of which could reasonably be expected to have a Material
      Adverse Effect; (iii) timely obtain or file, and shall cause each Subsidiary
      to
      timely obtain or file, all environmental permits, if any, required under
      applicable Environmental Laws to be obtained or filed in connection with the
      operation or use of the Parent Guarantor’s or its Subsidiaries’ Properties,
      which failure to obtain or file could reasonably be expected to have a Material
      Adverse Effect; (iv) promptly commence and diligently prosecute to completion,
      and shall cause each Subsidiary to promptly commence and diligently prosecute
      to
      completion, any assessment, evaluation, investigation, monitoring, containment,
      cleanup, removal, repair, restoration, remediation or other remedial obligations
      (collectively, the “Remedial
      Work”)
      in the
      event any Remedial Work is required or reasonably necessary under applicable
      Environmental Laws because of or in connection with the actual or suspected
      past, present or future Release or threatened Release of any Hazardous Material
      on, under, about or from any of the Parent Guarantor’s or its Subsidiaries’
Properties, which failure to commence and diligently prosecute to completion
      could reasonably be expected to have a Material Adverse Effect; (v) conduct,
      and
      cause its Subsidiaries to conduct, their respective operations and businesses
      in
      a manner that will not expose any Property or Person to Hazardous Materials
      that
      could reasonably be expected to form the basis for a claim for damages or
      compensation that could reasonably be expected to have a Material Adverse
      Effect; and (vi) establish and implement, and shall cause each Subsidiary to
      establish and implement, such procedures as may be necessary to continuously
      determine and assure that the Parent Guarantor’s and its Subsidiaries’
obligations under this Section 8.10 are timely and fully satisfied, which
      failure to establish and implement could reasonably be expected to have a
      Material Adverse Effect.

     

    
      
        
        

      

      
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    (b) The
      Parent Guarantor will promptly, but in no event later than five days of the
      occurrence of a triggering event, notify the Administrative Agent and the
      Lenders in writing of any action, investigation or inquiry by any Governmental
      Authority or any demand or lawsuit by any Person against the Parent Guarantor
      or
      its Subsidiaries or their Properties of which the Parent Guarantor has knowledge
      in connection with any Environmental Laws if the Parent Guarantor could
      reasonably anticipate that such action will result in liability (whether
      individually or in the aggregate) in excess of $10,000,000, not fully covered
      by
      insurance, subject to normal deductibles.

     

    (c) The
      Parent Guarantor will, and will cause each Subsidiary to, provide environmental
      assessments, audits and tests in accordance with the most current version of
      the
      American Society of Testing Materials standards upon request by the
      Administrative Agent and the Lenders and no more than once per year in the
      absence of any Event of Default (or as otherwise required to be obtained by
      the
      Administrative Agent or the Lenders by any Governmental Authority), in
      connection with any future acquisitions of Oil and Gas Properties or other
      Properties.

     

    Section
      8.11 Further
      Assurances.

     

    (a) The
      Parent Guarantor at its expense will, and will cause each Subsidiary to,
      promptly execute and deliver to the Administrative Agent all such other
      documents, agreements and instruments reasonably requested by the Administrative
      Agent to comply with, cure any defects or accomplish the conditions precedent,
      covenants and agreements of the Parent Guarantor or any Subsidiary, as the
      case
      may be, in the Loan Documents, including the Notes, if any, or to further
      evidence and more fully describe the collateral intended as security for the
      Indebtedness, or to correct any omissions in this Agreement or the Security
      Instruments, or to state more fully the obligations secured therein, or to
      perfect, protect or preserve any Liens created pursuant to this Agreement or
      any
      of the Security Instruments or the priority thereof, or to make any recordings,
      file any notices or obtain any consents, all as may be reasonably necessary
      or
      appropriate, in the reasonable discretion of the Administrative Agent, in
      connection therewith.

     

    (b) The
      Borrower and the Parent Guarantor hereby authorize the Administrative Agent
      to
      file one or more financing or continuation statements, and amendments thereto,
      relative to all or any part of the Mortgaged Property without the signature
      of
      any Loan Party where permitted by law. A carbon, photographic or other
      reproduction of the Security Instruments or any financing statement covering
      the
      Mortgaged Property or any part thereof shall be sufficient as a financing
      statement where permitted by law.

     

    Section
      8.12 Reserve
      Reports.

     

    (a) On
      or
      before March 1st and September 1st of each year, commencing September 1, 2007,
      the Borrower shall furnish to the Administrative Agent and the Lenders a Reserve
      Report. The Reserve Report as of December 31 of each year shall be prepared
      by
      one or more Approved Petroleum Engineers or by or under the supervision of
      the
      chief engineer of the Borrower and audited or reviewed by one or more Approved
      Petroleum Engineers, and all other Reserve Reports shall be prepared by or
      under
      the supervision of the chief engineer of the Borrower and otherwise in a manner
      consistent with the preceding December 31st Reserve Report. Each Reserve Report
      prepared by or under the supervision of the chief engineer of the Borrower
      shall
      be certified by the chief engineer to be true and accurate in all material
      respects and to have been prepared in accordance with the procedures used in
      the
      immediately preceding December 31st Reserve Report.

     

    
      
        
        

      

      
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    (b) In
      the
      event of an Interim Redetermination, the Borrower shall furnish to the
      Administrative Agent and the Lenders a Reserve Report prepared by or under
      the
      supervision of the chief engineer of the Borrower who shall certify such Reserve
      Report to be true and accurate in all material respects and to have been
      prepared in accordance with the procedures used in the immediately preceding
      December 31 Reserve Report. For any Interim Redetermination requested by the
      Administrative Agent or the Borrower pursuant to Section 2.07(b), the Borrower
      shall provide such Reserve Report with an “as of” date as required by the
      Administrative Agent as soon as possible, but in any event no later than
      forty-five (45) days following the receipt of such request.

     

    (c) With
      the
      delivery of each Reserve Report, the Borrower shall provide to the
      Administrative Agent and the Lenders a certificate substantially in the form
      of
      Exhibit I from a Responsible Officer certifying that in all material respects:
      (i) the information contained in the Reserve Report and any other information
      delivered in connection therewith is true and correct, (ii) the Borrower or
      its
      Subsidiaries owns good and defensible title to the Oil and Gas Properties
      evaluated in such Reserve Report and such Properties are free of all Liens
      except for Liens permitted by Section 9.03, (iii) except as set forth on an
      exhibit to the certificate, on a net basis there are no gas imbalances, take
      or
      pay or other prepayments in excess of the volume specified in Section 7.19
      with
      respect to its Oil and Gas Properties evaluated in such Reserve Report which
      would require the Borrower or any Subsidiary to deliver Hydrocarbons either
      generally or produced from such Oil and Gas Properties at some future time
      without then or thereafter receiving full payment therefor, (iv) none of their
      Oil and Gas Properties have been sold since the date of the last Borrowing
      Base
      determination except as set forth on an exhibit to the certificate, which
      certificate shall list all of its Oil and Gas Properties sold and in such detail
      as reasonably required by the Administrative Agent, (v) attached to the
      certificate is a list of all marketing agreements entered into subsequent to
      the
      later of the date hereof or the most recently delivered Reserve Report which
      the
      Borrower could reasonably be expected to have been obligated to list on Schedule
      7.20 had such agreement been in effect on the date hereof and (vi) attached
      thereto is a schedule of the Oil and Gas Properties evaluated by such Reserve
      Report that are Mortgaged Properties and demonstrating the percentage of the
      Borrowing Base that the value of such Mortgaged Properties
      represent.

     

    Section
      8.13 Title
      Information.

     

    (a) On
      or
      before the delivery to the Administrative Agent and the Lenders of each Reserve
      Report required by Section 8.12(a), the Borrower will deliver, if requested
      by
      the Administrative Agent, title information in form and substance reasonably
      acceptable to the Administrative Agent covering enough of the Oil and Gas
      Properties evaluated by such Reserve Report that were not included in the
      immediately preceding Reserve Report, so that the Administrative Agent shall
      have received together with title information previously delivered to the
      Administrative Agent, reasonably satisfactory title information on at least
      75%
      of the total value of the Oil and Gas Properties evaluated by such Reserve
      Report.

     

    (b) If
      the
      Borrower has provided title information for additional Properties under Section
      8.13(a), the Borrower shall, within 60 days of notice from the Administrative
      Agent that title defects or exceptions exist with respect to such additional
      Properties, either (i) cure any such title defects or exceptions (including
      defects or exceptions as to priority) which are not permitted by Section 9.03
      raised by such information, (ii) substitute acceptable Mortgaged Properties
      with
      no title defects or exceptions except for Excepted Liens (other than Excepted
      Liens described in clauses (e), (g) and (h) of such definition) having an
      equivalent value or (iii) deliver title information in form and substance
      reasonably acceptable to the Administrative Agent so that the Administrative
      Agent shall have received, together with title information previously delivered
      to the Administrative Agent, reasonably satisfactory title information on at
      least 75% of the value of the Oil and Gas Properties evaluated by such Reserve
      Report.

     

    
      
        
        

      

      
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    (c) If
      the
      Borrower is unable to cure any title defect requested by the Administrative
      Agent or the Lenders to be cured within the 60-day period or the Borrower does
      not comply with the requirements to provide acceptable title information
      covering 75% of the value of the Oil and Gas Properties evaluated in the most
      recent Reserve Report, such default shall not be a Default, but instead the
      Administrative Agent and/or the Super-Majority Lenders shall have the right
      to
      exercise the following remedy in their sole discretion from time to time, and
      any failure to so exercise this remedy at any time shall not be a waiver as
      to
      future exercise of the remedy by the Administrative Agent or the Lenders. To
      the
      extent that the Administrative Agent or the Super-Majority Lenders are not
      satisfied with title to any Mortgaged Property after the 60-day period has
      elapsed, such unacceptable Mortgaged Property shall not count towards the 75%
      requirement, and the Administrative Agent may send a notice to the Borrower
      and
      the Lenders that the then outstanding Borrowing Base shall be reduced by an
      amount as determined by the Super-Majority Lenders to cause the Borrower to
      be
      in compliance with the requirement to provide acceptable title information
      on
      75% of the value of the Oil and Gas Properties. This new Borrowing Base shall
      become effective immediately after receipt of such notice.

     

    Section
      8.14 Additional
      Collateral; Additional Guarantors.

     

    (a) In
      connection with each redetermination of the Borrowing Base, the Borrower shall
      review the Reserve Report and the list of current Mortgaged Properties (as
      described in Section 8.12(c)(vi)) to ascertain whether the Mortgaged Properties
      represent at least 80% of the total value of the Oil and Gas Properties
      evaluated in the most recently completed Reserve Report after giving effect
      to
      exploration and production activities, acquisitions, dispositions and
      production. In the event that the Mortgaged Properties do not represent at
      least
      80% of such total value, then the Borrower shall, and shall cause its
      Subsidiaries to, grant within thirty (30) days of the delivery of the
      certificate referred to in Section 8.12(c) to the Administrative Agent as
      security for the Indebtedness a first-priority Lien interest (provided that
      Excepted Liens of the type described in clauses (a) to (d) and (f) of the
      definition thereof may exist, but subject to the provisos at the end of such
      definition) on additional Oil and Gas Properties not already subject to a Lien
      of the Security Instruments such that after giving effect thereto, the Mortgaged
      Properties will represent at least 80% of the total value of the Oil and Gas
      Properties included in the then effective Borrowing Base. All such Liens will
      be
      created and perfected by and in accordance with the provisions of deeds of
      trust, security agreements and financing statements or other Security
      Instruments, all in form and substance reasonably satisfactory to the
      Administrative Agent and in sufficient executed (and acknowledged where
      necessary or appropriate) counterparts for recording purposes. In order to
      comply with the foregoing, if any Subsidiary places a Lien on its Oil and Gas
      Properties and such Subsidiary is not a Guarantor, then it shall become a
      Guarantor and comply with Section 8.14(b).

     

    (b) The
      Parent Guarantor shall promptly cause each Material Subsidiary to guarantee
      the
      Indebtedness pursuant to the Guaranty Agreement. In connection with any such
      guaranty, the Parent Guarantor shall, or shall cause such Subsidiary to, (i)
      execute and deliver a supplement to the Guaranty Agreement executed by such
      Subsidiary, (ii) grant a first-priority security interest in all of the Equity
      Interests of such Subsidiary (including, without limitation, delivery of
      original certificates evidencing the Equity Interests of such Subsidiary, as
      appropriate, together with undated stock powers for each certificate duly
      executed in blank by the registered owner thereof) and (iii) execute and deliver
      such other additional documents, certificates and legal opinions as shall
      reasonably be requested by the Administrative Agent.

     

    
      
        
        

      

      
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    (c) In
      the
      event that the Borrower or any Material Subsidiary becomes a partner in a
      Partnership or acquire additional interest in a Partnership, then the Borrower
      shall, or shall cause such Subsidiary to, (i) grant a first-priority security
      interest in all the Equity Interests owned by such Person in such Partnership
      and (ii) execute and deliver such other additional documents, certificates
      and
      legal opinions as shall reasonably be requested by the Administrative
      Agent.

     

    Section
      8.15 ERISA
      Compliance.
      The
      Parent Guarantor will promptly furnish and will cause the Subsidiaries and
      any
      ERISA Affiliate to promptly furnish to the Administrative Agent (a) promptly
      after the filing thereof with the United States Secretary of Labor, the Internal
      Revenue Service or the PBGC, copies of each annual and other report with respect
      to each Plan or any trust created thereunder, (b) promptly upon becoming aware
      of the occurrence of any ERISA Event or of any “prohibited transaction,” as
      described in section 406 of ERISA or in section 4975 of the Code, in connection
      with any Plan or any trust created thereunder, a written notice signed by the
      President or the principal Financial Officer, the Subsidiary or the ERISA
      Affiliate, as the case may be, specifying the nature thereof, what action the
      Parent Guarantor, the Subsidiary or the ERISA Affiliate is taking or proposes
      to
      take with respect thereto, and, when known, any action taken or proposed by
      the
      Internal Revenue Service, the Department of Labor or the PBGC with respect
      thereto, and (c) promptly upon receipt thereof, copies of any notice of the
      PBGC’s intention to terminate or to have a trustee appointed to administer any
      Plan. With respect to each Plan (other than a Multiemployer Plan), the Parent
      Guarantor will, and will cause each Subsidiary and ERISA Affiliate to, (i)
      satisfy in full and in a timely manner, without incurring any late payment
      or
      underpayment charge or penalty and without giving rise to any lien, all of
      the
      contribution and funding requirements of section 412 of the Code (determined
      without regard to subsections (d), (e), (f) and (k) thereof) and of section
      302
      of ERISA (determined without regard to sections 303, 304 and 306 of ERISA),
      and
      (ii) pay, or cause to be paid, to the PBGC in a timely manner, without incurring
      any late payment or underpayment charge or penalty, all premiums required
      pursuant to sections 4006 and 4007 of ERISA.

     

    Section
      8.16 Swap
      Agreements.
      The
      Parent Guarantor shall maintain the hedge position established by the Swap
      Agreements required under Section 6.01(p) during the period specified therein
      and shall neither assign, terminate or unwind any such Swap Agreements nor
      sell
      any Swap Agreements if the effect of such action (when taken together with
      any
      other Swap Agreements executed contemporaneously with the taking of such action)
      would have the effect of canceling its positions under such Swap Agreements
      required hereby.

     

    Section
      8.17 Unrestricted
      Subsidiaries.
      The
      Parent Guarantor:

     

    (a) will
      cause the management, business and affairs of each of the Parent Guarantor
      and
      its Subsidiaries to be conducted in such a manner (including, without
      limitation, by keeping separate books of account, furnishing separate financial
      statements of Unrestricted Subsidiaries to creditors and potential creditors
      thereof and by not permitting Properties of the Parent Guarantor and its
      respective Subsidiaries to be commingled) so that each Unrestricted Subsidiary
      that is a corporation will be treated as a corporate entity separate and
      distinct from Parent Guarantor and the Subsidiaries; provided that the foregoing
      will not prohibit payments under the Expense Sharing Agreement or other expense
      sharing agreements with such Unrestricted Subsidiaries which are consistent
      with
      past practices and/or required by any applicable Governmental
      Authority.

     

    (b) will
      not,
      and will not permit any of the Subsidiaries to, incur, assume, guarantee or
      be
      or become liable for any Debt of any of the Unrestricted Subsidiaries.

     

    (c) will
      not
      permit any Unrestricted Subsidiary to hold any Equity Interest in, or any Debt
      of, the Parent Guarantor or any Subsidiary.

     

    
      
        
        

      

      
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    ARTICLE
      IX

    Negative
      Covenants

     

    Until
      the
      Commitments have expired or terminated and the principal of and interest on
      each
      Loan and all fees payable hereunder and all other amounts payable under the
      Loan
      Documents have been paid in full and all Letters of Credit have expired or
      terminated and all LC Disbursements shall have been reimbursed, the Parent
      Guarantor and the Borrower covenant and agree with the Lenders
      that:

     

    Section
      9.01 Financial
      Covenants

     

    (a) Ratio
      of Total Debt to EBITDA.
      The
      Parent Guarantor will not, as of any date of determination, permit its ratio
      of
      Total Debt as of such day to EBITDA for the four fiscal quarters ending on
      the
      last day of the fiscal quarter immediately preceding such date of determination
      for which financial statements are available to be greater than:

     

    (i) for
      the
      period beginning on the Closing Date through December 31, 2008:
      4.0:1,

     

    (ii) for
      the
      period beginning after December 31, 2008 through December 31, 2009: 3.75:1,
      and

     

    (iii) thereafter:
      3.5:1.

     

    For
      the
      avoidance of doubt, the foregoing ratio shall be calculated to exclude Total
      Debt and EBITDA attributable to the Unrestricted Subsidiaries (but to include
      cash distributions from Anthem Securities paid to the Borrower or other Loan
      Party).

     

    (b) Current
      Ratio.
      The
      Parent Guarantor will not permit, as of the last day of any fiscal quarter,
      its
      ratio of (i) consolidated current assets (including the unused amount of the
      total Commitments, but excluding non-cash assets under FAS 133) to (ii)
      consolidated current liabilities (excluding non-cash obligations under FAS
      133,
      current maturities of Loans and those portions of advance payments received
      by
      the Loan Parties for drilling and completion of oil and gas wells that exceed
      the cost to the Loan Parties and are classified as current liabilities) to
      be
      less than 1.0 to 1.0; provided that for purposes of this covenant, current
      assets and current liabilities of Unrestricted Subsidiaries shall be
      excluded.

     

    Section
      9.02 Debt.
      The
      Parent Guarantor will not, and will not permit any Subsidiary (other than
      Unrestricted Subsidiaries) to, incur, create, assume or suffer to exist any
      Debt, except:

     

    (a) the
      Indebtedness arising under the Loan Documents or any guaranty of or suretyship
      arrangement for the Indebtedness arising under the Loan Documents.

     

    (b) Debt
      of
      the Parent Guarantor and its Subsidiaries existing on the date hereof that
      is
      reflected in the Financial Statements and Schedule 9.02 and any renewals and
      extensions thereof (but not any increases).

     

    (c) accounts
      payable and accrued expenses, liabilities or other obligations to pay the
      deferred purchase price of Property or services, from time to time incurred
      in
      the ordinary course of business which are not greater than ninety (90) days
      past
      the date of invoice or which are being contested in good faith by appropriate
      action and for which adequate reserves have been maintained in accordance with
      GAAP.

     

    
      
        
        

      

      
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    (d) Debt
      under Capital Leases not to exceed $25,000,000 (excluding capitalized leases
      of
      Hydrocarbon Interests).

     

    (e) Debt
      associated with worker’s compensation claims, performance, bid, surety or
      similar bonds or surety obligations required by Governmental Requirements or
      third parties in connection with the operation of the Oil and Gas
      Properties.

     

    (f) intercompany
      Debt between the Parent Guarantor and any Subsidiary or between Subsidiaries
      to
      the extent permitted by Section 9.05(g); provided
      that
      such Debt is not held, assigned, transferred, negotiated or pledged to any
      Person other than the Parent Guarantor or one of its Wholly-Owned Subsidiaries,
      and, provided further, that any such Debt owed by either the Parent Guarantor
      or
      a Guarantor shall be subordinated to the Indebtedness on terms set forth in
      the
      Guaranty Agreement.

     

    (g) endorsements
      of negotiable instruments for collection in the ordinary course of
      business.

     

    (h) Senior
      Notes provided that (i) at the time of incurring such Debt (A) no Default has
      occurred and is then continuing and (B) no Default would result from the
      incurrence of such Debt after giving effect to the incurrence of such Debt
      (and
      any concurrent repayment of Debt with the proceeds of such incurrence), (ii)
      such Debt does not have any scheduled amortization prior to one year after
      the
      Maturity Date, (iii) such Debt does not mature sooner than one year after the
      Maturity Date, (iv) the terms of such Debt are not materially more onerous,
      taken as a whole, than the terms of this Agreement and the other Loan Documents
      and (v) such Debt and any guarantees thereof are on prevailing market terms
      for
      similar situated companies. 

     

    (i) Debt
      owed
      to Atlas America, Inc. not to exceed $50,000,000 in the aggregate; provided,
      that, all such debt shall be unsecured and subordinated to the Indebtedness
      on
      terms and conditions reasonably satisfactory to the Administrative
      Agent.

     

    (j) other
      Debt not to exceed $50,000,000 in the aggregate at any one time
      outstanding.

     

    Notwithstanding
      the foregoing, no Subsidiary which is a Partnership shall incur or become liable
      in respect of any Debt.

     

    Section
      9.03 Liens.
      The
      Parent Guarantor will not, and will not permit any Subsidiary to, create, incur,
      assume or permit to exist any Lien on any of its Properties (now owned or
      hereafter acquired), except:

     

    (a) Liens
      securing the payment of any Indebtedness.

     

    (b) Excepted
      Liens.

     

    (c) Liens
      securing Capital Leases permitted by Section 9.02(d) but only on the Property
      under lease.

     

    (d) Liens
      on
      Property of Unrestricted Subsidiaries securing Non-Recourse Debt of such
      Unrestricted Subsidiaries permitted by Section 9.20(d).

     

    (e) Liens
      on
      cash and securities pledged to secure Swap Agreements, provided the aggregate
      amount of all such cash and securities shall not exceed
      $25,000,000.

     

    
      
        
        

      

      
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    (f) Liens
      on
      Property not constituting collateral for the Indebtedness and not otherwise
      permitted by the foregoing clauses of this Section 9.03; provided that the
      aggregate principal or face amount of all Debt secured under this Section
      9.03(f) shall not exceed $10,000,000 at any time.

     

    Section
      9.04 Restricted
      Payments; Redemption of Subordinated Debt.

     

    (a) Restricted
      Payments.
      The
      Parent Guarantor will not, and will not permit any of its Subsidiaries to,
      declare or make, or agree to pay or make, directly or indirectly, any Restricted
      Payment, return any capital to its stockholders or make any distribution of
      its
      Property to its Equity Interest holders, except (i) the Parent Guarantor may
      declare and pay dividends with respect to its Equity Interests payable solely
      in
      additional shares of its Equity Interests (other than Disqualified Capital
      Stock), (ii) Subsidiaries may declare and pay dividends ratably with respect
      to
      their Equity Interests and (iii) so long as no Borrowing Base deficiency or
      Event of Default has occurred and is continuing or would result therefrom,
      and,
      subject to the proviso in Section 7.09(d), the Parent Guarantor may declare
      and
      pay quarterly cash dividends to its members of Available Cash in accordance
      with
      the Operating Agreement.

     

    (b) Redemption
      of Senior Notes.
      The
      Parent Guarantor will not, and will not permit any Subsidiary to, prior to
      the
      date that is one year after the Maturity Date: (i) call, make or offer to make
      any optional or voluntary Redemption of or otherwise optionally or voluntarily
      Redeem (whether in whole or in part) any Senior Notes permitted to be incurred
      hereunder, provided that the Parent Guarantor may Redeem such Debt with the
      net
      cash proceeds of any sale of Equity Interests of the Parent Guarantor (other
      than Disqualified Capital Stock); or (ii) amend, modify, waive or otherwise
      change, consent or agree to any amendment, modification, waiver or other change
      to, any of the terms of the Senior Notes or any indenture, agreement,
      instrument, certificate or other document relating to the Senior Notes permitted
      hereunder other than supplemental indentures to add guarantors if such Person
      has become a Guarantor of the Indebtedness.

     

    Section
      9.05 Investments,
      Loans and Advances.
      The
      Parent Guarantor will not, and will not permit any Subsidiary to, make or permit
      to remain outstanding any Investments in or to any Person, except that the
      foregoing restriction shall not apply to:

     

    (a) Investments
      reflected in the Financial Statements or which are disclosed to the Lenders
      in
      Schedule 9.05.

     

    (b) accounts
      receivable arising in the ordinary course of business.

     

    (c) direct
      obligations of the United States or any agency thereof, or obligations
      guaranteed by the United States or any agency thereof, in each case maturing
      within one year from the date of creation thereof.

     

    (d) commercial
      paper maturing within one year from the date of creation thereof rated no lower
      than A2 or P2 by S&P or Moody’s,
      respectively.

     

    (e) deposits
      maturing within one year from the date of creation thereof with, including
      certificates of deposit issued by, any Lender or any office located in the
      United States of any other bank or trust company which is organized under the
      laws of the United States or any state thereof, has capital, surplus and
      undivided profits aggregating at least $100,000,000 (as of the date of such
      bank
      or trust company’s most recent financial reports) and has a short term deposit
      rating of no lower than A2 or P2, as such rating is set forth from time to
      time,
      by S&P or Moody’s, respectively.

     

    
      
        
        

      

      
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    (f) deposits
      in money market funds investing exclusively in Investments described in Section
      9.05(c), Section 9.05(d) or Section 9.05(e).

     

    (g) Investments
      (i) made by the Parent Guarantor in or to the Borrower, (ii) made by the
      Borrower in or to any Subsidiary of the Borrower which is a Guarantor, (iii)
      made by any Subsidiary in or to the Borrower or any Guarantor,
      and
      (iv) made by the Borrower or any Guarantor (other than the Parent Guarantor)
      or
      any Subsidiary in or to any Subsidiary that is not a Guarantor in an aggregate
      amount in all such Subsidiaries at any one time outstanding not to exceed
      $5,000,000.

     

    (h) Investments
      (including, without limitation, capital contributions), in the Partnerships.
      

     

    (i) loans
      or
      advances to employees, officers or directors of the Parent Guarantor or any
      of
      its Subsidiaries, in each case in the ordinary course of business and consistent
      with past practices.

     

    (j) Investments
      in stock, obligations or securities received in settlement of debts arising
      from
      Investments permitted under this Section 9.05 owing to the Parent Guarantor
      or
      any Subsidiary as a result of a bankruptcy or other insolvency proceeding of
      the
      obligor in respect of such debts or upon the enforcement of any Lien in favor
      of
      the Parent Guarantor or any of its Subsidiaries

     

    (k) Non-hostile
      acquisitions of Equity Interests or assets constituting a business unit of
      any
      Person, provided
      that:
      (i)
      immediately prior to and after giving effect to such acquisition, no Default
      or
      Event of Default exists or would result therefrom; (ii) if such acquisition
      is
      of Equity Interests, substantially all of the Equity Interests of such Person
      are acquired and such Person becomes a Guarantor; (iii) such Person is
      principally engaged in the same business as the Obligors; (iv) the Borrower
      shall be in pro forma compliance with the covenants set forth in Section 9.01
      based on the trailing four (4) quarters and as adjusted on a pro forma basis
      for
      such acquisition; (v) such acquired Person or assets shall not be subject to
      any
      material liabilities except as permitted by this Agreement and Loan Documents;
      and (vi) a first priority perfected Lien shall be granted to the Administrative
      Agent for the benefit of the Lenders in such acquired assets.

     

    (l) Investments
      in Unrestricted Subsidiaries not to exceed $25,000,000 in the aggregate at
      any
      time.

     

    (m) other
      Investments not to exceed $25,000,000 in the aggregate at any time.

     

    Section
      9.06 Nature
      of Business; International Operations;
      Foreign Subsidiaries.
      Neither
      the Parent Guarantor nor any Subsidiary will allow any material change to be
      made in the character of its business as a domestic independent oil and gas
      exploration and production company. From and after the date hereof, the Parent
      Guarantor and its Subsidiaries will not acquire or make any other expenditure
      (whether such expenditure is capital, operating or otherwise) in or related
      to,
      any Oil and Gas Properties not located within the geographical boundaries of
      the
      United States.

     

    Section
      9.07 Proceeds
      of Loans and Letters of Credit.
      The
      Parent Guarantor will not permit the proceeds of the Loans to be used for any
      purpose other than those permitted by Section 7.09. Neither the Parent Guarantor
      nor any Person acting on behalf of the Parent Guarantor has taken or will take
      any action which might cause any of the Loan Documents to violate Regulations
      T,
      U or X or any other regulation of the Board or to violate Section 7 of the
      Securities Exchange Act of 1934 or any rule or regulation thereunder, in each
      case as now in effect or as the same may hereinafter be in effect. If requested
      by the Administrative Agent, the Parent Guarantor will furnish to the
      Administrative Agent and each Lender a statement to the foregoing effect in
      conformity with the requirements of FR Form U-1 or such other form referred
      to
      in Regulation U, Regulation T or Regulation X of the Board, as the case may
      be.

     

    
      
        
        

      

      
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    Section
      9.08 ERISA
      Compliance.
      The
      Parent Guarantor and the Subsidiaries will not at any time:

     

    (a) engage
      in, or permit any ERISA Affiliate to engage in, any transaction in connection
      with which the Parent Guarantor, a Subsidiary or any ERISA Affiliate could
      be
      subjected to either a civil penalty assessed pursuant to subsections (c), (i)
      or
      (l) of section 502 of ERISA or a tax imposed by Chapter 43 of
      Subtitle D of the Code, if either of which would have a Material Adverse
      Effect.

     

    (b) terminate,
      or permit any ERISA Affiliate to terminate, any Plan in a manner, or take any
      other action with respect to any Plan, which could reasonably be expected to
      result in any liability of the Parent Guarantor, a Subsidiary or any ERISA
      Affiliate to the PBGC.

     

    (c) fail
      to
      make, or permit any ERISA Affiliate to fail to make, full payment when due
      of
      all amounts which, under the provisions of any Plan, agreement relating thereto
      or applicable law, the Parent Guarantor, a Subsidiary or any ERISA Affiliate
      is
      required to pay as contributions thereto if such failure could reasonably be
      expected to have a Material Adverse Effect.

     

    (d) permit
      to
      exist, or allow any ERISA Affiliate to permit to exist, any accumulated funding
      deficiency within the meaning of section 302 of ERISA or section 412 of the
      Code, whether or not waived, with respect to any Plan which exceeds
      $2,000,000.

     

    (e) permit,
      or allow any ERISA Affiliate to permit, the actuarial present value of the
      benefit liabilities under any Plan maintained by the Parent Guarantor, a
      Subsidiary or any ERISA Affiliate which is regulated under Title IV of
      ERISA to exceed the current value of the assets (computed on a plan termination
      basis in accordance with Title IV of ERISA) of such Plan allocable to such
      benefit liabilities. The term “actuarial present value of the benefit
      liabilities” shall have the meaning specified in section 4041 of
      ERISA.

     

    (f) contribute
      to or assume an obligation to contribute to, or permit any ERISA Affiliate
      to
      contribute to or assume an obligation to contribute to, any Multiemployer
      Plan.

     

    (g) acquire,
      or permit any ERISA Affiliate to acquire, an interest in any Person that causes
      such Person to become an ERISA Affiliate with respect to the Parent Guarantor
      or
      a Subsidiary or with respect to any ERISA Affiliate of the Parent Guarantor
      or a
      Subsidiary if such Person sponsors, maintains or contributes to, or at any
      time
      in the six-year period preceding such acquisition has sponsored, maintained,
      or
      contributed to, (i) any Multiemployer Plan, or (ii) any other Plan that is
      subject to Title IV of ERISA under which the actuarial present value of the
      benefit liabilities under such Plan exceeds the current value of the assets
      (computed on a plan termination basis in accordance with Title IV of ERISA)
      of such Plan allocable to such benefit liabilities by any amount in excess
      of
      $2,000,000.

     

    (h) incur,
      or
      permit any ERISA Affiliate to incur, a liability to or on account of a Plan
      under sections 515, 4062, 4063, 4064, 4201 or 4204 of ERISA.

     

    (i) contribute
      to or assume an obligation to contribute to, or permit any ERISA Affiliate
      to
      contribute to or assume an obligation to contribute to, any employee welfare
      benefit plan, as defined in section 3(1) of ERISA, including, without
      limitation, any such plan maintained to provide benefits to former employees
      of
      such entities, that may not be terminated by such entities in their sole
      discretion at any time without any material liability.

     

    
      
        
        

      

      
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    (j) amend,
      or
      permit any ERISA Affiliate to amend, a Plan resulting in a material increase
      in
      current liability such that the Parent Guarantor, a Subsidiary or any ERISA
      Affiliate is required to provide security to such Plan under section 401(a)(29)
      of the Code.

     

    Section
      9.09 Sale
      or Discount of Receivables.
      Except
      for receivables obtained by the Parent Guarantor or any Subsidiary out of the
      ordinary course of business or the settlement of joint interest billing accounts
      in the ordinary course of business or discounts granted to settle collection
      of
      accounts receivable or the sale of defaulted accounts arising in the ordinary
      course of business in connection with the compromise or collection thereof
      and
      not in connection with any financing transaction, neither the Parent Guarantor
      nor any Subsidiary will discount or sell (with or without recourse) to any
      other
      Person that is not the Parent Guarantor or a Guarantor any of its notes
      receivable or accounts receivable.

     

    Section
      9.10 Mergers,
      Etc.
      Neither
      the Parent Guarantor nor any Loan Party will merge into or with or consolidate
      with any other Person, or sell, lease or otherwise dispose of (whether in one
      transaction or in a series of transactions) all or substantially all of its
      Property to any other Person (any such transaction, a “consolidation”);
provided
      that:

     

    (a) any
      Subsidiary (other than the Borrower) may participate in a consolidation with
      the
      Parent Guarantor (provided that the Parent Guarantor shall be the continuing
      or
      surviving Person), and

     

    (b) any
      Subsidiary of the Borrower may participate in a consolidation with the Borrower
      (provided that the Borrower shall be the continuing or surviving Person) or
      any
      other Subsidiary (provided that if a Party to such consolidation is a Guarantor
      or the surviving Person is a Material Subsidiary, then the survivor is either
      a
      Guarantor or becomes a Guarantor under Section 8.14(b), and if one of such
      Subsidiaries party to such consolidation is a Wholly-Owned Subsidiary, then
      the
      surviving Person shall be a Wholly-Owned Subsidiary).

     

    Section
      9.11 Sale
      of Properties.
      The
      Parent Guarantor will not, and will not permit any Subsidiary to, sell, assign,
      farm-out, convey or otherwise transfer any Property except for (a) the sale
      of
      Hydrocarbons in the ordinary course of business; (b) farmouts of undeveloped
      acreage, zones or depths and assignments in connection with such farmouts;
      (c)
      the sale or transfer of equipment that is no longer necessary for the business
      of the Parent Guarantor or such Subsidiary or is replaced by equipment of at
      least comparable value and use; (d) the sale or other disposition (including
      Casualty Events) of any Oil and Gas Property or any interest therein or any
      Subsidiary owning Oil and Gas Properties; provided that (i) 100% of the
      consideration received in respect of such sale or other disposition shall be
      cash or other similar Oil and Gas Properties, (ii) the consideration received
      in
      respect of such sale or other disposition shall be equal to or greater than
      the
      fair market value of the Oil and Gas Property, interest therein or Subsidiary
      subject of such sale or other disposition (as reasonably determined by the
      board
      of directors of the Parent Guarantor and, if requested by the Administrative
      Agent, the Parent Guarantor shall deliver a certificate of a Responsible Officer
      of the Parent Guarantor certifying to that effect), (iii) if such sale or other
      disposition of Oil and Gas Property (including farm-outs under Section 9.11(b))
      or Subsidiary owning Oil and Gas Properties included in the most recently
      delivered Reserve Report during any period between two successive Scheduled
      Redetermination Dates has a fair market value in excess of ten percent (10%)
      of
      the then effective Borrowing Base, individually or in the aggregate, the
      Borrowing Base (and prior to the Borrowing Base Equalization Date, the
      Conforming Borrowing Base) shall be reduced, effective immediately upon such
      sale or disposition, by an amount equal to the allocated value, if any, assigned
      such Property in the most recently delivered Borrowing Base and (iv) if any
      such
      sale or other disposition is of a Subsidiary owning Oil and Gas Properties,
      such
      sale or other disposition shall include all the Equity Interests of such
      Subsidiary; and (e) sales and other dispositions of Properties not regulated
      by
      Section 9.11(a) to (d) having a fair market value not to exceed $10,000,000
      during any 6-month period.

     

    
      
        
        

      

      
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    Section
      9.12 Environmental
      Matters.
      The
      Parent Guarantor will not, and will not permit any Subsidiary to, cause or
      permit any of its Property to be in violation of, or do anything or permit
      anything to be done which will subject any such Property to a Release or
      threatened Release of Hazardous Materials, exposure to any Hazardous Materials,
      or to any Remedial Work under any applicable Environmental Laws, assuming
      disclosure to the applicable Governmental Authority of all relevant facts,
      conditions and circumstances, if any, pertaining to such Property where such
      violations, Release or threatened Release, exposure, or remedial obligations
      could reasonably be expected to have a Material Adverse Effect.

     

    Section
      9.13 Transactions
      with Affiliates.
      Except
      for the Management Agreement and the Expense Sharing Agreement, the Parent
      Guarantor will not, and will not permit any Subsidiary to, enter into any
      transaction, including, without limitation, any purchase, sale, lease or
      exchange of Property or the rendering of any service, with any Affiliate (other
      than the Guarantors and Wholly-Owned Subsidiaries of the Parent Guarantor)
      unless such transactions are otherwise permitted under this Agreement and are
      upon fair and reasonable terms no less favorable to it than it would obtain
      in a
      comparable arm’s length transaction with a Person not an Affiliate.

     

    Section
      9.14 Subsidiaries.
      The
      Parent Guarantor shall not, and shall not permit any Subsidiary to, create
      or
      acquire any additional Subsidiary or designate or redesignate a Subsidiary
      as an
      Unrestricted Subsidiary unless the Parent Guarantor gives written notice to
      the
      Administrative Agent of such creation or acquisition and complies with Section
      8.14(b). The Parent Guarantor shall not, and shall not permit any Subsidiary
      to,
      sell, assign or otherwise dispose of any Equity Interests in any Subsidiary
      except in compliance with Section 9.11(d). Neither the Parent Guarantor nor
      any
      Subsidiary shall have any Foreign Subsidiaries.

     

    Section
      9.15 Negative
      Pledge Agreements; Dividend Restrictions.
      The
      Parent Guarantor will not, and will not permit any Subsidiary to, create, incur,
      assume or suffer to exist any contract, agreement or understanding which in
      any
      way prohibits or restricts the granting, conveying, creation or imposition
      of
      any Lien on any of its Property in favor of the Administrative Agent and the
      Lenders or restricts any Subsidiary from paying dividends or making
      distributions to the Parent Guarantor, the Borrower or any other Loan Party,
      or
      which requires the consent of or notice to other Persons in connection
      therewith; provided, however, that the preceding restrictions will not apply
      to
      encumbrances or restrictions arising under or by reason of (a) this Agreement
      or
      the Security Instruments, (b) any leases or licenses or similar contracts as
      they affect any Property or Lien subject to a lease or license, (c) any
      contract, agreement or understanding creating Liens on Capital Leases permitted
      by Section 9.03(c) (but only to the extent related to the Property on which
      such
      Liens were created), (d) any restriction with respect to a Subsidiary imposed
      pursuant to an agreement entered into for the direct or indirect sale or
      disposition of all or substantially all the equity or Property of such
      Subsidiary (or the Property that is subject to such restriction) pending the
      closing of such sale or disposition, or (e) customary provisions with respect
      to
      the distribution of Property in joint venture agreements.

     

    Section
      9.16 Gas
      Imbalances, Take-or-Pay or Other Prepayments.
      The
      Parent Guarantor will not allow gas imbalances, take-or-pay or other prepayments
      with respect to the Oil and Gas Properties of the Parent Guarantor or any
      Subsidiary that would require the Parent Guarantor or such Subsidiary to deliver
      Hydrocarbons at some future time without then or thereafter receiving full
      payment therefor to exceeding three and one-half percent (3.5%) of monthly
      production in the aggregate.

     

    
      
        
        

      

      
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    Section
      9.17 Swap
      Agreements.
      The
      Parent Guarantor will not, and will not permit any Subsidiary to, enter into
      any
      Swap Agreements with any Person other than:

     

    (a) Swap
      Agreements listed on Schedule 7.21 and other Swap Agreements (other than
      purchase options) in respect of commodities entered into by the Borrower fixing
      prices on oil and/or gas expected to be produced by the Loan Parties and the
      Partnerships provided that (i) such contracts shall be with an Approved
      Counterparty, (ii) no such contract shall be entered into by the Borrower on
      behalf of another Person, except where the Borrower has the contractual
      authority to enter into such Swap Agreements on behalf of such Person and the
      obligations under such Swap Agreements are fully recourse to such Person and
      (iii) the notional volumes for which (when aggregated with other commodity
      Swap
      Agreements then in effect other than basis differential swaps on volumes already
      hedged pursuant to other Swap Agreements) do not exceed, as of the date such
      Swap Agreement is executed: (A) during the 24-month period immediately following
      the date on which such Swap Agreement is entered: the lesser of (1) 90% of
      the
      reasonably anticipated projected production from its and its Subsidiaries’ and
      the Partnerships proved Oil and Gas Properties (including the Acquisition
      Properties) and (2) 100% of the reasonably anticipated projected production
      from
      its and its Subsidiaries’ and the Partnerships proved developed producing Oil
      and Gas Properties (including the Acquisition Properties), and (B) for the
      24-month period immediately following the period described in clause (A), 85%
      of
      the reasonably anticipated projected production from its, its Subsidiaries
      and
      the Partnerships’ proved, developed, producing Oil and Gas Properties. Any such
      projections to be adjusted as follows: (A) Oil and Gas Properties evaluated
      in
      the most recently delivered Reserve Report shall reflect the actual historical
      decline profile of such Oil and Gas Properties and (B) Oil and Gas Properties
      not evaluated in the most recently delivered Reserve Report shall reflect a
      reasonable decline profile based upon actual historical decline profiles of
      similar or analogous Oil and Gas Properties) for each month during the period
      during which such Swap Agreement is in effect for each of crude oil and natural
      gas, calculated separately.

     

    (b) Swap
      Agreements in respect of interest rates with an Approved Counterparty, as
      follows: (i) Swap Agreements effectively converting interest rates from fixed
      to
      floating, the notional amounts of which (when aggregated with all other Swap
      Agreements of the Parent Guarantor and its Subsidiaries then in effect
      effectively converting interest rates from fixed to floating) do not exceed
      50%
      of the then outstanding principal amount of the Parent Guarantor’s Debt for
      borrowed money which bears interest at a fixed rate and (ii) Swap Agreements
      effectively converting interest rates from floating to fixed, the notional
      amounts of which (when aggregated with all other Swap Agreements of the Parent
      Guarantor and its Subsidiaries then in effect effectively converting interest
      rates from floating to fixed) do not exceed 75% of the then outstanding
      principal amount of the Parent Guarantor’s Debt for borrowed money which bears
      interest at a floating rate.

     

    (c) Except
      as
      set forth in Section 9.03(e), in no event shall any Swap Agreement contain
      any
      requirement, agreement or covenant for the Parent Guarantor or any Subsidiary
      to
      post collateral or margin to secure their obligations under such Swap Agreement
      or to cover market exposures.

     

    Section
      9.18 Tax
      Status as Partnership; Partnership Agreement.
      The
      Parent Guarantor shall not alter its status as a partnership for purposes of
      United States Federal Income taxes. The Parent Guarantor shall not, and shall
      not permit any Subsidiary to, amend or modify any provision of the Operating
      Agreement or any other organizational document, or any agreements with
      Affiliates of the type referred to in Section 9.13, if such amendment or
      modification could reasonably be expected to have a Material Adverse
      Effect.

     

    Section
      9.19 Designation
      and Conversion of Restricted and Unrestricted Subsidiaries; Debt of Unrestricted
      Subsidiaries.

     

    
      
        
        

      

      
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    (a) Unless
      designated as an Unrestricted Subsidiary on Schedule 7.15 as of the date hereof
      or thereafter, assuming compliance with Section 9.19(b), any Person that becomes
      a Subsidiary of the Borrower or any of its Subsidiaries shall be classified
      as a
      Subsidiary.

     

    (b) The
      Borrower may designate by written notification thereof to the Administrative
      Agent, any Subsidiary, including a newly formed or newly acquired Subsidiary,
      as
      an Unrestricted Subsidiary if prior, and after giving effect, to such
      designation, neither a Default nor a Borrowing Base deficiency would exist
      and such designation is deemed to be an Investment in an Unrestricted
      Subsidiary in an amount equal to the fair market value as of the date of such
      designation of the Borrower’s direct and indirect ownership interest in such
      Subsidiary and such Investment would be permitted to be made at the time of
      such
      designation under Section 9.05(l). Except as provided in this Section 9.19(b),
      no Subsidiary may be redesignated as an Unrestricted Subsidiary.

     

    (c) The
      Borrower may designate any Unrestricted Subsidiary to be a Subsidiary if after
      giving effect to such designation, the representations and warranties of
      the Borrower and its Subsidiaries contained in each of the Loan Documents are
      true and correct on and as of such date as if made on and as of the date of
      such
      redesignation (or, if stated to have been made expressly as of an earlier date,
      were true and correct as of such date), no Default would exist and the
      Borrower complies with the requirements of Section 8.14, Section 8.17 and
      Section 9.14. Any such designation shall be treated as a cash dividend in an
      amount equal to the lesser of the fair market value of the Borrower’s direct and
      indirect ownership interest in such Subsidiary or the amount of the Borrower’s
      cash investment previously made for purposes of the limitation on Investments
      under Section 9.05(l).

     

    (d) The
      Borrower shall not permit the aggregate principal amount of all Non-Recourse
      Debt outstanding at any one time to exceed $25,000,000.

     

    ARTICLE
      X

    Events
      of Default; Remedies

     

    Section
      10.01 Events
      of Default.
      One or
      more of the following events shall constitute an “Event
      of Default”:

     

    (a) the
      Borrower shall fail to pay any principal of any Loan or any reimbursement
      obligation in respect of any LC Disbursement when and as the same shall become
      due and payable, whether at the due date thereof or at a date fixed for payment
      or prepayment thereof or otherwise.

     

    (b) the
      Borrower shall fail to pay any interest on any Loan or any fee or any other
      amount (other than an amount referred to in Section 10.01(a)) payable under
      any
      Loan Document, when and as the same shall become due and payable, and such
      failure shall continue unremedied for a period of three Business
      Days.

     

    (c) any
      representation or warranty made or deemed made by or on behalf of the Parent
      Guarantor or any Subsidiary in or in connection with any Loan Document or any
      amendment or modification of any Loan Document or waiver under such Loan
      Document, or in any report, certificate, financial statement or other document
      furnished pursuant to or in connection with any Loan Document or any amendment
      or modification thereof or waiver thereunder, shall prove to have been incorrect
      when made or deemed made.

     

    (d) the
      Parent Guarantor or any Subsidiary shall fail to observe or perform any
      covenant, condition or agreement contained Section 8.02(a) or in ARTICLE
      IX.

     

    
      
        
        

      

      
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    (e) the
      Parent Guarantor or any Subsidiary shall fail to observe or perform any
      covenant, condition or agreement contained in this Agreement (other than those
      specified in Section 10.01(a), Section 10.01(b) or Section 10.01(d)) or any
      other Loan Document, and such failure shall continue unremedied for a period
      of
      30 days after the earlier to occur of (i) notice thereof from the Administrative
      Agent or any Lender to the Borrower or (ii) a Responsible Officer of the Parent
      Guarantor or such Subsidiary otherwise becoming aware of such
      default.

     

    (f) the
      Parent Guarantor or any Subsidiary shall fail to make any payment (whether
      of
      principal or interest and regardless of amount) in respect of any Material
      Indebtedness, when and as the same shall become due and payable.

     

    (g) any
      event
      or condition occurs that results in any Material Indebtedness becoming due
      prior
      to its scheduled maturity or that enables or permits (with or without the giving
      of notice, the lapse of time or both) the holder or holders of any Material
      Indebtedness or any trustee or agent on its or their behalf to cause any
      Material Indebtedness to become due, or to require the Redemption thereof or
      any
      offer to Redeem to be made in respect thereof (other than as permitted by the
      definition of Disqualified Capital Stock), prior to its scheduled maturity
      or
      require the Parent Guarantor or any Subsidiary to make an offer in respect
      thereof.

     

    (h) an
      involuntary proceeding shall be commenced or an involuntary petition shall
      be
      filed seeking (i) liquidation, reorganization or other relief in respect of
      any
      Loan Party or any Significant Subsidiary or its debts, or of a substantial
      part
      of its assets, under any Federal, state or foreign bankruptcy, insolvency,
      receivership or similar law now or hereafter in effect or (ii) the appointment
      of a receiver, trustee, custodian, sequestrator, conservator or similar official
      for any Loan Party or any Significant Subsidiary or for a substantial part
      of
      its assets, and, in any such case, such proceeding or petition shall continue
      undismissed for 30 days or an order or decree approving or ordering any of
      the
      foregoing shall be entered.

     

    (i) any
      Loan
      Party or any Significant Subsidiary shall (i) voluntarily commence any
      proceeding or file any petition seeking liquidation, reorganization or other
      relief under any Federal, state or foreign bankruptcy, insolvency, receivership
      or similar law now or hereafter in effect, (ii) consent to the institution
      of,
      or fail to contest in a timely and appropriate manner, any proceeding or
      petition described in Section 10.01(h), (iii) apply for or consent to the
      appointment of a receiver, trustee, custodian, sequestrator, conservator or
      similar official for any Loan Party or any Significant Subsidiary or for a
      substantial part of its assets, (iv) file an answer admitting the material
      allegations of a petition filed against it in any such proceeding, (v) make
      a
      general assignment for the benefit of creditors or (vi) take any action for
      the
      purpose of effecting any of the foregoing.

     

    (j) any
      Loan
      Party or any Significant Subsidiary shall become unable, admit in writing its
      inability, or fail generally to pay its debts as they become due.

     

    (k) one
      or
      more judgments for the payment of money in an aggregate amount in excess of
      $25,000,000 shall be rendered against Parent Guarantor, any of its Subsidiaries,
      including the Borrower, or any combination thereof and the same shall remain
      undischarged (or provision shall not be made for such discharge), or a stay
      of
      execution thereof shall not be procured, within the period of time prescribed
      by
      applicable rules of civil procedure in which to perfect an appeal
      thereof.

     

    (l) the
      Loan
      Documents after delivery thereof shall for any reason, except to the extent
      permitted by the terms thereof, cease to be in full force and effect and valid,
      binding and enforceable in accordance with their terms against any Loan Party
      or
      shall be repudiated, or cease to create a valid and perfected Lien of the
      priority required thereby on any of the collateral purported to be covered
      thereby, except to the extent permitted by the terms of this Agreement, or
      any
      Loan Party shall so state in writing.

     

    
      
        
        

      

      
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    (m) an
      ERISA
      Event shall have occurred that, in the opinion of the Majority Lenders, when
      taken together with all other ERISA Events that have occurred, could reasonably
      be expected to result in liability of the Parent Guarantor and its Subsidiaries
      in an aggregate amount exceeding $25,000,000.

     

    (n) a
      Change
      in Control shall occur.

     

    Section
      10.02 Remedies.

     

    (a) In
      the
      case of an Event of Default other than one described in Section 10.01(h),
      Section 10.01(i) or Section 10.01(j), at any time thereafter during the
      continuance of such Event of Default, the Majority Lenders may, by notice to
      the
      Borrower, take either or both of the following actions, at the same or different
      times: (i) terminate the Commitments, and thereupon the Commitments shall
      terminate immediately, and (ii) declare the Notes and the Loans then outstanding
      to be due and payable in whole (or in part, in which case any principal not
      so
      declared to be due and payable may thereafter be declared to be due and
      payable), and thereupon the principal of the Loans so declared to be due and
      payable, together with accrued interest thereon and all fees and other
      obligations of the Loan Parties accrued hereunder and under the Notes and the
      other Loan Documents (including, without limitation, the payment of cash
      collateral to secure the LC Exposure as provided in Section 2.08(i)), shall
      become due and payable immediately, without presentment, demand, protest, notice
      of intent to accelerate, notice of acceleration or other notice of any kind,
      all
      of which are hereby waived by each Loan Party; and in case of an Event of
      Default described in Section 10.01(h), Section 10.01(i) or Section 10.01(j),
      the
      Commitments shall automatically terminate and the Notes and the principal of
      the
      Loans then outstanding, together with accrued interest thereon and all fees
      and
      the other obligations of the Borrower and the Guarantors accrued hereunder
      and
      under the Notes and the other Loan Documents (including, without limitation,
      the
      payment of cash collateral to secure the LC Exposure as provided in Section
      2.08(i)), shall automatically become due and payable, without presentment,
      demand, protest or other notice of any kind, all of which are hereby waived
      by
      each Loan Party.

     

    (b) In
      the
      case of the occurrence of an Event of Default, the Administrative Agent and
      each
      Lender will have all other rights and remedies available to it or them at law
      and equity.

     

    (c) All
      proceeds realized from the liquidation or other disposition of collateral or
      otherwise received after the Termination Date, whether by acceleration or
      otherwise, shall be applied: first,
      to
      reimbursement of expenses and indemnities provided for in this Agreement and
      the
      Security Instruments; second,
      to
      accrued interest on the Loans; third,
      to
      fees; fourth,
      pro
      rata to outstanding principal of the Loans, to serve as cash collateral to
      be
      held by the Administrative Agent to secure the LC Exposure and Indebtedness
      referred to in Clause (b) of the definition of Indebtedness owing to a Lender
      or
      an Affiliate of a Lender; fifth,
      to any
      other Indebtedness; and any excess shall be paid to the Borrower or as otherwise
      required by any Governmental Requirement.

     

    ARTICLE
      XI

    The
      Agents

     

    Section
      11.01 Appointment;
      Powers.
      Each of
      the Lenders and the Issuing Bank hereby irrevocably (subject to Section 11.06)
      appoints the Administrative Agent as its agent and authorizes the Administrative
      Agent to take such actions on its behalf and to exercise such powers as are
      delegated to the Administrative Agent by the terms hereof and the other Loan
      Documents, together with such actions and powers as are reasonably incidental
      thereto.

     

    
      
        
        

      

      
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    Section
      11.02 Duties
      and Obligations of Administrative Agent.
      The
      Administrative Agent shall not have any duties or obligations except those
      expressly set forth in the Loan Documents. Without limiting the generality
      of
      the foregoing, (a) the Administrative Agent shall not be subject to any
      fiduciary or other implied duties, regardless of whether a Default has occurred
      and is continuing (the use of the term “agent” herein and in the other Loan
      Documents with reference to the Administrative Agent is not intended to connote
      any fiduciary or other implied (or express) obligations arising under agency
      doctrine of any applicable law; rather, such term is used merely as a matter
      of
      market custom, and is intended to create or reflect only an administrative
      relationship between independent contracting parties), (b) the Administrative
      Agent shall not have any duty to take any discretionary action or exercise
      any
      discretionary powers, except as provided in Section 11.03, and (c) except as
      expressly set forth herein, the Administrative Agent shall not have any duty
      to
      disclose, and shall not be liable for the failure to disclose, any information
      relating to the Parent Guarantor or any of its Subsidiaries that is communicated
      to or obtained by the bank serving as Administrative Agent or any of its
      Affiliates in any capacity. The Administrative Agent shall be deemed not to
      have
      knowledge of any Default unless and until written notice thereof is given to
      the
      Administrative Agent by the Parent Guarantor or a Lender, and shall not be
      responsible for or have any duty to ascertain or inquire into (i) any statement,
      warranty or representation made in or in connection with this Agreement or
      any
      other Loan Document, (ii) the contents of any certificate, report or other
      document delivered hereunder or under any other Loan Document or in connection
      herewith or therewith, (iii) the performance or observance of any of the
      covenants, agreements or other terms or conditions set forth herein or in any
      other Loan Document, (iv) the validity, enforceability, effectiveness or
      genuineness of this Agreement, any other Loan Document or any other agreement,
      instrument or document, (v) the satisfaction of any condition set forth in
      ARTICLE VI or elsewhere herein, other than to confirm receipt of items expressly
      required to be delivered to the Administrative Agent or as to those conditions
      precedent specifically required to be to the Administrative Agent’s
      satisfaction, (vi) the existence, value, perfection or priority of any
      collateral security or the financial or other condition of the Parent Guarantor
      and its Subsidiaries or any other obligor or guarantor, or (vii) any failure
      by
      the Parent Guarantor or any other Person (other than itself) to perform any
      of
      its obligations hereunder or under any other Loan Document or the performance
      or
      observance of any covenants, agreements or other terms or conditions set forth
      herein or therein. For purposes of determining compliance with the conditions
      specified in Article VI, each Lender shall be deemed to have consented to,
      approved or accepted or to be satisfied with, each document or other matter
      required thereunder to be consented to or approved by or acceptable or
      satisfactory to a Lender unless the Administrative Agent shall have received
      written notice from such Lender prior to the proposed closing date specifying
      its objection thereto.

     

    Section
      11.03 Action
      by Administrative Agent.
      The
      Administrative Agent shall not have any duty to take any discretionary action
      or
      exercise any discretionary powers, except discretionary rights and powers
      expressly contemplated hereby or by any of the Loan Documents that the
      Administrative Agent is required to exercise in writing as directed by the
      Majority Lenders (or such other number or percentage of the Lenders as shall
      be
      necessary under the circumstances as provided in Section 12.02) and in all
      cases
      the Administrative Agent shall be fully justified in failing or refusing to
      act
      hereunder or under any other Loan Documents unless it shall (a) receive written
      instructions from the Majority Lenders or the Lenders, as applicable, (or such
      other number or percentage of the Lenders as shall be necessary under the
      circumstances as provided in Section 12.02) specifying the action to be taken
      and (b) be indemnified to its satisfaction by the Lenders against any and all
      liability and expenses which may be incurred by it by reason of taking or
      continuing to take any such action. The instructions as aforesaid and any action
      taken or failure to act pursuant thereto by the Administrative Agent shall
      be
      binding on all of the Lenders. If a Default has occurred and is continuing,
      then
      the Administrative Agent shall take such action with respect to such Default
      as
      shall be directed by the requisite Lenders in the written instructions (with
      indemnities) described in this Section 11.03, provided that, unless and until
      the Administrative Agent shall have received such directions, the Administrative
      Agent may (but shall not be obligated to) take such action, or refrain from
      taking such action, with respect to such Default as it shall deem advisable
      in
      the best interests of the Lenders. In no event, however, shall the
      Administrative Agent be required to take any action which exposes the
      Administrative Agent to personal liability or which is contrary to this
      Agreement, the Loan Documents or applicable law. If a Default has occurred
      and
      is continuing, neither the Syndication Agent nor the Documentation Agents shall
      have any obligation to perform any act in respect thereof. No Agent shall be
      liable for any action taken or not taken by it with the consent or at the
      request of the Majority Lenders or the Lenders (or such other number or
      percentage of the Lenders as shall be necessary under the circumstances as
      provided in Section 12.02), and otherwise no Agent shall be liable for any
      action taken or not taken by it hereunder or under any other Loan Document
      or
      under any other document or instrument referred to or provided for herein or
      therein or in connection herewith or therewith INCLUDING ITS OWN ORDINARY
      NEGLIGENCE, except for its own gross negligence or willful
      misconduct.

     

    
      
        
        

      

      
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    Section
      11.04 Reliance
      by Administrative Agent.
      The
      Administrative Agent shall be entitled to rely upon, and shall not incur any
      liability for relying upon, any notice, request, certificate, consent,
      statement, instrument, document or other writing believed by it to be genuine
      and to have been signed or sent by the proper Person. The Administrative Agent
      also may rely upon any statement made to it orally or by telephone and believed
      by it to be made by the proper Person, and shall not incur any liability for
      relying thereon and each of the Parent Guarantor, the Borrower, the Lenders
      and
      the Issuing Bank hereby waives the right to dispute the Administrative Agent’s
      record of such statement, except in the case of gross negligence or willful
      misconduct by the Administrative Agent. The Administrative Agent may consult
      with legal counsel (who may be counsel for the Borrower), independent
      accountants and other experts selected by it, and shall not be liable for any
      action taken or not taken by it in accordance with the advice of any such
      counsel, accountants or experts. The Agents may deem and treat the payee of
      any
      Note as the holder thereof for all purposes hereof unless and until a written
      notice of the assignment or transfer thereof permitted hereunder shall have
      been
      filed with the Administrative Agent.

     

    Section
      11.05 Subagents.
      The
      Administrative Agent may perform any and all its duties and exercise its rights
      and powers by or through any one or more sub-agents appointed by the
      Administrative Agent in good faith after due inquiry. The Administrative Agent
      and any such sub-agent may perform any and all its duties and exercise its
      rights and powers through their respective Related Parties. The exculpatory
      provisions of the preceding Sections of this ARTICLE XI shall apply to any
      such
      sub-agent and to the Related Parties of the Administrative Agent and any such
      sub-agent, and shall apply to their respective activities in connection with
      the
      syndication of the credit facilities provided for herein as well as activities
      as Administrative Agent.

     

    Section
      11.06 Resignation
      of Agents.
      Subject
      to the appointment and acceptance of a successor Agent as provided in this
      Section 11.06, any Agent may resign at any time by notifying the Lenders, the
      Issuing Bank and the Borrower. Upon any such resignation, the Majority Lenders
      shall have the right, in consultation with and upon the approval of the Borrower
      (so long as no Event of Default has occurred and is continuing), which approval
      shall not be unreasonably withheld, to appoint a successor. If no successor
      shall have been so appointed by the Majority Lenders and shall have accepted
      such appointment within 30 days after the retiring Agent gives notice of its
      resignation, then the retiring Agent may, on behalf of the Lenders and the
      Issuing Bank, appoint a successor Agent which shall be a bank with an office
      in
      New York, New York, or an Affiliate of any such bank. Upon the acceptance of
      its
      appointment as Agent hereunder by a successor, such successor shall succeed
      to
      and become vested with all the rights, powers, privileges and duties of the
      retiring Agent, and the retiring Agent shall be discharged from its duties
      and
      obligations hereunder. After the Agent’s resignation hereunder, the provisions
      of this ARTICLE XI and Section 12.03 shall continue in effect for the benefit
      of
      such retiring Agent, its sub-agents and their respective Related Parties in
      respect of any actions taken or omitted to be taken by any of them while it
      was
      acting as Agent.

     

    
      
        
        

      

      
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    Section
      11.07 Agents
      as Lenders.
      Each
      bank serving as an Agent hereunder shall have the same rights and powers in
      its
      capacity as a Lender as any other Lender and may exercise the same as though
      it
      were not an Agent, and such bank and its Affiliates may accept deposits from,
      lend money to and generally engage in any kind of business with the Parent
      Guarantor or any Subsidiary or other Affiliate thereof as if it were not an
      Agent hereunder.

     

    Section
      11.08 No
      Reliance.
      Each
      Lender acknowledges that it has, independently and without reliance upon the
      Administrative Agent, any other Agent or any other Lender and based on such
      documents and information as it has deemed appropriate, made its own credit
      analysis and decision to enter into this Agreement and each other Loan Document
      to which it is a party. Each Lender also acknowledges that it will,
      independently and without reliance upon the Administrative Agent, any other
      Agent or any other Lender and based on such documents and information as it
      shall from time to time deem appropriate, continue to make its own decisions
      in
      taking or not taking action under or based upon this Agreement, any other Loan
      Document, any related agreement or any document furnished hereunder or
      thereunder. The Agents shall not be required to keep themselves informed as
      to
      the performance or observance by the Parent Guarantor or any of its Subsidiaries
      of this Agreement, the Loan Documents or any other document referred to or
      provided for herein or to inspect the Properties or books of the Parent
      Guarantor or its Subsidiaries. Except for notices, reports and other documents
      and information expressly required to be furnished to the Lenders by the
      Administrative Agent hereunder, no Agent or the Arranger shall have any duty
      or
      responsibility to provide any Lender with any credit or other information
      concerning the affairs, financial condition or business of the Parent Guarantor
      (or any of its Affiliates) which may come into the possession of such Agent
      or
      any of its Affiliates. In this regard, each Lender acknowledges that Vinson
      & Elkins L.L.P. is acting in this transaction as special counsel to the
      Administrative Agent only, except to the extent otherwise expressly stated
      in
      any legal opinion or any Loan Document. Each other party hereto will consult
      with its own legal counsel to the extent that it deems necessary in connection
      with the Loan Documents and the matters contemplated therein.

     

    Section
      11.09 Authority
      of Administrative Agent to Release Collateral and Liens.
      Each
      Lender and the Issuing Bank hereby authorizes the Administrative Agent to
      release any collateral that is permitted to be sold or released pursuant to
      the
      terms of the Loan Documents. Each Lender and the Issuing Bank hereby authorizes
      the Administrative Agent to execute and deliver to the Borrower, at the
      Borrower’s sole cost and expense, any and all releases of Liens, termination
      statements, assignments or other documents reasonably requested by the Borrower
      in connection with any sale or other disposition of Property to the extent
      such
      sale or other disposition is permitted by the terms of Section 9.11 or Section
      12.02(b).

     

    Section
      11.10  Administrative
      Agent May File Proofs of Claim.

     

    (a) In
      case
      of the pendency of any receivership, insolvency, liquidation, bankruptcy,
      reorganization, arrangement, adjustment, composition or other judicial
      proceeding relative to any Loan Party, the Administrative Agent (irrespective
      of
      whether the principal of any Loan shall then be due and payable as herein
      expressed or by declaration or otherwise and irrespective of whether the
      Administrative Agent shall have made any demand on the Borrower) shall be
      entitled and empowered, by intervention in such proceeding or
      otherwise:

     

    (i) to
      file
      and prove a claim for the whole amount of the principal and interest owing
      and
      unpaid in respect of the Loans and all other Indebtedness that are owing and
      unpaid and to file such other documents as may be necessary or advisable in
      order to have the claims of the Lenders and the Administrative Agent (including
      any claim for the reasonable compensation, expenses, disbursements and advances
      of the Lenders and the Administrative Agent and their respective agents and
      counsel and all other amounts due the Lenders and the Administrative Agent
      under
      Section 12.03) allowed in such judicial proceeding; and

     

    
      
        
        

      

      
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    (ii) to
      collect and receive any monies or other property payable or deliverable on
      any
      such claims and to distribute the same;

     

    and
      any
      custodian, receiver, assignee, trustee, liquidator, sequestrator or other
      similar official in any such judicial proceeding is hereby authorized by each
      Lender to make such payments to the Administrative Agent and, in the event
      that
      the Administrative Agent shall consent to the making of such payments directly
      to the Lenders, to pay to the Administrative Agent any amount due for the
      reasonable compensation, expenses, disbursements and advances of the
      Administrative Agent and its agents and counsel, and any other amounts due
      the
      Administrative Agent under Section 12.03.

     

    (b) Nothing
      contained herein shall be deemed to authorize the Administrative Agent to
      authorize or consent to or accept or adopt on behalf of any Lender any plan
      of
      reorganization, arrangement, adjustment or composition affecting the
      Indebtedness or the rights of any Lender or to authorize the Administrative
      Agent to vote in respect of the claim of any Lender in any such
      proceeding.

     

    Section
      11.11 The
      Arranger, the Syndication Agent and the Documentation Agents.
      The
      Arranger, the Syndication Agent and the Documentation Agents shall have no
      duties, responsibilities or liabilities under this Agreement and the other
      Loan
      Documents other than their duties, responsibilities and liabilities in their
      capacity as Lenders hereunder.

     

    ARTICLE
      XII

    Miscellaneous

     

    Section
      12.01 Notices.

     

    (a) Except
      in
      the case of notices and other communications expressly permitted to be given
      by
      telephone (and subject to Section 12.01(b)), all notices and other
      communications provided for herein shall be in writing and shall be delivered
      by
      hand or overnight courier service, mailed by certified or registered mail or
      sent by telecopy, as follows:

     

    (i) if
      to the
      Borrower, to it at West Pointe Corporate Center I, 1550 Coraopolis Heights
      Road,
      Moon Township, Pennsylvania 15108, Attention of Matthew A. Jones, (Telecopy
      No.
      215.546.4785/Email: mjones@atlaspipelinepartners.com);

     

    (ii) if
      to the
      Administrative Agent, to it at: 1 Chase Tower, 10 South Dearborn, IL1-0010,
      Chicago, Illinois 60603 Attention: Mi Y Kim, Phone No. 312.732.4853, Fax No.
      312.385.7096, and for all other correspondence other than borrowings,
      continuation, conversion and Letter of Credit requests 600 Travis, 20th Floor,
      Houston, Texas 77002, Attention of Robert C. Mertensotto (Telecopy No.
      713.216.4117); and

     

    (iii) if
      to any
      other Lender, in its capacity as such, or any other Lender in its capacity
      as
      the Issuing Bank, to it at its address (or telecopy number) set forth in its
      Administrative Questionnaire.

     

    
      
        
        

      

      
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    (b) Notices
      and other communications to the Lenders hereunder may be delivered or furnished
      by electronic communications pursuant to procedures approved by the
      Administrative Agent; provided that the foregoing shall not apply to notices
      pursuant to ARTICLE II, ARTICLE III, ARTICLE IV and ARTICLE V unless otherwise
      agreed by the Administrative Agent and the applicable Lender. The Administrative
      Agent may, in its discretion, agree to accept notices and other communications
      to it hereunder by electronic communications pursuant to procedures approved
      by
      it; provided that approval of such procedures may be limited to particular
      notices or communications.

     

    (c) Any
      party
      hereto may change its address or telecopy number for notices and other
      communications hereunder by notice to the other parties hereto. All notices
      and
      other communications given to any party hereto in accordance with the provisions
      of this Agreement shall be deemed to have been given on the date of
      receipt.

     

    Section
      12.02 Waivers;
      Amendments.

     

    (a) No
      failure on the part of the Administrative Agent, the Issuing Bank or any Lender
      to exercise and no delay in exercising, and no course of dealing with respect
      to, any right, power or privilege, or any abandonment or discontinuance of
      steps
      to enforce such right, power or privilege, under any of the Loan Documents
      shall
      operate as a waiver thereof, nor shall any single or partial exercise of any
      right, power or privilege under any of the Loan Documents preclude any other
      or
      further exercise thereof or the exercise of any other right, power or privilege.
      The rights and remedies of the Administrative Agent, the Issuing Bank and the
      Lenders hereunder and under the other Loan Documents are cumulative and are
      not
      exclusive of any rights or remedies that they would otherwise have. No waiver
      of
      any provision of this Agreement or any other Loan Document or consent to any
      departure by any Loan Party therefrom shall in any event be effective unless
      the
      same shall be permitted by Section 12.02(b), and then such waiver or consent
      shall be effective only in the specific instance and for the purpose for which
      given. Without limiting the generality of the foregoing, the making of a Loan
      or
      issuance of a Letter of Credit shall not be construed as a waiver of any
      Default, regardless of whether the Administrative Agent, any Lender or the
      Issuing Bank may have had notice or knowledge of such Default at the
      time.

     

    (b) Neither
      this Agreement nor any provision hereof nor any Security Instrument nor any
      provision thereof may be waived, amended or modified except pursuant to an
      agreement or agreements in writing entered into by the Parent Guarantor, the
      Borrower and the Majority Lenders or by the Parent Guarantor, the Borrower
      and
      the Administrative Agent with the consent of the Majority Lenders; provided
      that
      no such agreement shall (i) increase the Maximum Credit Amount of any Lender
      without the written consent of such Lender, (ii) increase the Borrowing Base
      or
      the Conforming Borrowing Base without the written consent of all Lenders,
      decrease or maintain the Borrowing Base or the Conforming Borrowing Base without
      the consent of the Super-Majority Lenders, or modify Section 2.07 without the
      consent of each Lender, (iii) extend or post-pone the Borrowing Base
      Equalization Date without the written consent of each Lender, (iv) reduce the
      principal amount of any Loan or LC Disbursement or reduce the rate of interest
      thereon, or reduce any fees payable hereunder, or reduce any other Indebtedness
      hereunder or under any other Loan Document, without the written consent of
      each
      Lender affected thereby, (v) postpone the scheduled date of payment or
      prepayment of the principal amount of any Loan or LC Disbursement, or any
      interest thereon, or any fees payable hereunder, or any other Indebtedness
      hereunder or under any other Loan Document, or reduce the amount of, waive
      or
      excuse any such payment, or postpone or extend the Termination Date without
      the
      written consent of each Lender affected thereby, (vi) change Section 4.01(b)
      or
      Section 4.01(c) in a manner that would alter the pro rata sharing of payments
      required thereby, without the written consent of each Lender, (vii) release
      any
      Guarantor (except as set forth in the Guaranty Agreement), release any of the
      collateral (other than as provided in Section 11.09), or reduce the percentage
      set forth in Section 8.14(a) to less than 80%, without the written consent
      of
      each Lender, or (viii) change any of the provisions of this Section 12.02(b)
      or
      the definitions of “Super-Majority Lenders” or “Majority Lenders” or any other
      provision hereof specifying the number or percentage of Lenders required to
      waive, amend or modify any rights hereunder or under any other Loan Documents
      or
      make any determination or grant any consent hereunder or any other Loan
      Documents, without the written consent of each Lender; provided further that
      no
      such agreement shall amend, modify or otherwise affect the rights or duties
      of
      the Administrative Agent, any other Agent or the Issuing Bank hereunder or
      under
      any other Loan Document without the prior written consent of the Administrative
      Agent, such other Agent or the Issuing Bank, as the case may be. Notwithstanding
      the foregoing, any supplement to Schedule 7.15 (Subsidiaries) shall be effective
      simply by delivering to the Administrative Agent a supplemental schedule clearly
      marked as such and, upon receipt, the Administrative Agent will promptly deliver
      a copy thereof to the Lenders.

     

    
      
        
        

      

      
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    Section
      12.03 Expenses,
      Indemnity; Damage Waiver.

     

    (a) The
      Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the
      Administrative Agent and its Affiliates, including, without limitation, the
      reasonable fees, charges and disbursements of counsel and other outside
      consultants for the Administrative Agent, the reasonable travel, photocopy,
      mailing, courier, telephone and other similar expenses, and the cost of
      environmental audits and surveys and appraisals, in connection with the
      syndication of the credit facilities provided for herein, the preparation,
      negotiation, execution, delivery and administration (both before and after
      the
      execution hereof and including advice of counsel to the Administrative Agent
      as
      to the rights and duties of the Administrative Agent and the Lenders with
      respect thereto) of this Agreement and the other Loan Documents and any
      amendments, modifications or waivers of or consents related to the provisions
      hereof or thereof (whether or not the transactions contemplated hereby or
      thereby shall be consummated), (ii) all costs, expenses, taxes, assessments
      and
      other charges incurred by any Agent or any Lender in connection with any filing,
      registration, recording or perfection of any security interest contemplated
      by
      this Agreement or any Security Instrument or any other document referred to
      therein and (iii) all out-of-pocket expenses incurred by any Agent, the Issuing
      Bank or any Lender, including the fees, charges and disbursements of any counsel
      for any Agent, the Issuing Bank or any Lender, in connection with the
      enforcement or protection of its rights in connection with this Agreement or
      any
      other Loan Document, including its rights under this Section 12.03, or in
      connection with the Loans made or Letters of Credit issued hereunder, including,
      without limitation, all such out-of-pocket expenses incurred during any workout,
      restructuring or negotiations in respect of such Loans or Letters of
      Credit.

     

    (b) THE
      BORROWER SHALL INDEMNIFY THE ARRANGER, EACH AGENT, THE ISSUING BANK AND EACH
      LENDER, AND EACH RELATED PARTY OF ANY OF THE FOREGOING PERSONS (EACH SUCH PERSON
      BEING CALLED AN “INDEMNITEE”)
      AGAINST, DEFEND AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES,
      CLAIMS, DAMAGES, PENALITIES, LIABILITIES AND RELATED EXPENSES, INCLUDING THE
      REASONABLE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY INDEMNITEE,
      INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE ARISING OUT OF, IN CONNECTION
      WITH, OR AS A RESULT OF (i) THE EXECUTION OR DELIVERY OF THIS AGREEMENT OR
      ANY
      OTHER LOAN DOCUMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR
      THEREBY, THE PERFORMANCE BY THE PARTIES HERETO OR THE PARTIES TO ANY OTHER
      LOAN
      DOCUMENT OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THEREUNDER OR THE
      CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR BY ANY OTHER LOAN
      DOCUMENT, (ii) THE FAILURE OF THE PARENT GUARANTOR OR ANY LOAN PARTY TO COMPLY
      WITH THE TERMS OF ANY LOAN DOCUMENT, INCLUDING THIS AGREEMENT, OR WITH ANY
      GOVERNMENTAL REQUIREMENT, (iii) ANY INACCURACY OF ANY REPRESENTATION OR ANY
      BREACH OF ANY WARRANTY OR COVENANT OF THE PARENT GUARANTOR OR ANY GUARANTOR
      SET
      FORTH IN ANY OF THE LOAN DOCUMENTS OR ANY INSTRUMENTS, DOCUMENTS OR
      CERTIFICATIONS DELIVERED IN CONNECTION THEREWITH, (iv) ANY LOAN OR LETTER OF
      CREDIT OR THE USE OF THE PROCEEDS THEREFROM, INCLUDING, WITHOUT LIMITATION,
      (A)
      ANY REFUSAL BY THE ISSUING BANK TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER
      OF
      CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY
      COMPLY WITH THE TERMS OF SUCH LETTER OF CREDIT, OR (B) THE PAYMENT OF A DRAWING
      UNDER ANY LETTER OF CREDIT NOTWITHSTANDING THE NON-COMPLIANCE, NON-DELIVERY
      OR
      OTHER IMPROPER PRESENTATION OF THE DOCUMENTS PRESENTED IN CONNECTION THEREWITH,
      (v) ANY OTHER ASPECT OF THE LOAN DOCUMENTS, (vi) THE OPERATIONS OF THE BUSINESS
      OF THE PARENT GUARANTOR AND ITS SUBSIDIARIES, (vii) ANY ASSERTION THAT THE
      LENDERS WERE NOT ENTITLED TO RECEIVE THE PROCEEDS RECEIVED PURSUANT TO THE
      SECURITY INSTRUMENTS, (viii) ANY ENVIRONMENTAL LAW APPLICABLE TO THE PARENT
      GUARANTOR OR ANY SUBSIDIARY OR ANY OF THEIR PROPERTIES, INCLUDING WITHOUT
      LIMITATION, THE PRESENCE, GENERATION, STORAGE, RELEASE, THREATENED RELEASE,
      USE,
      TRANSPORT, DISPOSAL, ARRANGEMENT OF DISPOSAL OR TREATMENT OF OIL, OIL AND GAS
      WASTES, SOLID WASTES OR HAZARDOUS SUBSTANCES ON ANY OF THEIR PROPERTIES, (ix)
      THE BREACH OR NON-COMPLIANCE BY THE PARENT GUARANTOR OR ANY SUBSIDIARY WITH
      ANY
      ENVIRONMENTAL LAW APPLICABLE TO THE PARENT GUARANTOR OR ANY SUBSIDIARY, (x)
      THE
      PAST OWNERSHIP BY THE PARENT GUARANTOR OR ANY SUBSIDIARY OF ANY OF THEIR
      PROPERTIES OR PAST ACTIVITY ON ANY OF THEIR PROPERTIES WHICH, THOUGH LAWFUL
      AND
      FULLY PERMISSIBLE AT THE TIME, COULD RESULT IN PRESENT LIABILITY, (xi) THE
      PRESENCE, USE, RELEASE, STORAGE, TREATMENT, DISPOSAL, GENERATION, THREATENED
      RELEASE, TRANSPORT, ARRANGEMENT FOR TRANSPORT OR ARRANGEMENT FOR DISPOSAL OF
      OIL, OIL AND GAS WASTES, SOLID WASTES OR HAZARDOUS SUBSTANCES ON OR AT ANY
      OF
      THE PROPERTIES OWNED OR OPERATED BY THE PARENT GUARANTOR OR ANY SUBSIDIARY
      OR
      ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS MATERIALS ON OR FROM
      ANY
      PROPERTY OWNED OR OPERATED BY THE PARENT GUARANTOR OR ANY OF ITS SUBSIDIARIES,
      (xii) ANY ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE PARENT GUARANTOR
      OR
      ANY OF ITS SUBSIDIARIES, OR (xiii) ANY OTHER ENVIRONMENTAL, HEALTH OR SAFETY
      CONDITION IN CONNECTION WITH THE LOAN DOCUMENTS, OR (xiv) ANY ACTUAL OR
      PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY
      OF
      THE FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY AND
      REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO, AND SUCH INDEMNITY
      SHALL EXTEND TO EACH INDEMNITEE NOTWITHSTANDING THE SOLE OR CONCURRENT
      NEGLIGENCE OF EVERY KIND OR CHARACTER WHATSOEVER, WHETHER ACTIVE OR PASSIVE,
      WHETHER AN AFFIRMATIVE ACT OR AN OMISSION, INCLUDING WITHOUT LIMITATION, ALL
      TYPES OF NEGLIGENT CONDUCT IDENTIFIED IN THE RESTATEMENT (SECOND) OF TORTS
      OF
      ONE OR MORE OF THE INDEMNITEES OR BY REASON OF STRICT LIABILITY IMPOSED WITHOUT
      FAULT ON ANY ONE OR MORE OF THE INDEMNITEES; PROVIDED THAT SUCH INDEMNITY SHALL
      NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS,
      DAMAGES, LIABILITIES OR RELATED EXPENSES HAVE RESULTED FROM THE GROSS NEGLIGENCE
      OR WILFUL MISCONDUCT OF SUCH INDEMNITEE.

     

    
      
        
        

      

      
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    (c) To
      the
      extent that the Borrower fails to pay any amount required to be paid by it
      to
      any Agent or the Issuing Bank under Section 12.03(a) or (b), each Lender
      severally agrees to pay to such Agent or the Issuing Bank, as the case may
      be,
      such Lender’s Applicable Percentage (determined as of the time that the
      applicable unreimbursed expense or indemnity payment is sought) of such unpaid
      amount; provided that the unreimbursed expense or indemnified loss, claim,
      damage, liability or related expense, as the case may be, was incurred by or
      asserted against such Agent or the Issuing Bank in its capacity as
      such.

     

    
      
        
        

      

      
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    (d) To
      the
      extent permitted by applicable law, the Parent Guarantor and the Borrower shall
      not assert, and hereby waives, any claim against any Indemnitee, on any theory
      of liability, for special, indirect, consequential or punitive damages (as
      opposed to direct or actual damages) arising out of, in connection with, or
      as a
      result of, this Agreement, any other Loan Document or any agreement or
      instrument contemplated hereby or thereby, the Transactions, any Loan or Letter
      of Credit or the use of the proceeds thereof.

     

    (e) All
      amounts due under this Section 12.03 shall be payable promptly after written
      demand therefor.

     

    Section
      12.04 Successors
      and Assigns.

     

    (a) The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns permitted hereby
      (including any Affiliate of the Issuing Bank that issues any Letter of Credit),
      except that (i) the Borrower may not assign or otherwise transfer any of its
      rights or obligations hereunder without the prior written consent of each Lender
      (and any attempted assignment or transfer by the Borrower without such consent
      shall be null and void) and (ii) no Lender may assign or otherwise transfer
      its
      rights or obligations hereunder except in accordance with this Section 12.04.
      Nothing in this Agreement, expressed or implied, shall be construed to confer
      upon any Person (other than the parties hereto, their respective successors
      and
      assigns permitted hereby (including any Affiliate of the Issuing Bank that
      issues any Letter of Credit), Participants (to the extent provided in Section
      12.04(c)) and, to the extent expressly contemplated hereby, the Related Parties
      of each of the Administrative Agent, the Issuing Bank and the Lenders) any
      legal
      or equitable right, remedy or claim under or by reason of this
      Agreement

     

    (b) (i)
      Subject to the conditions set forth in paragraph (b)(ii) below, any Lender
      may
      assign to one or more assignees (each, an “Assignee”)
      all or
      a portion of its rights and obligations under this Agreement (including all
      or a
      portion of its Commitment and the Loans at the time owing to it) with the prior
      written consent of:

     

    (A) the
      Borrower (such consent not to be unreasonably withheld), provided
      that no
      consent of the Borrower shall be required for an assignment to a Lender, an
      Affiliate of a Lender, an Approved Fund (as defined below) or, if an Event
      of
      Default has occurred and is continuing, any other Person; and

     

    (B) the
      Administrative Agent and each Issuing Bank (such consent not to be unreasonably
      withheld).

     

    (ii) Assignments
      shall be subject to the following additional conditions:

     

    (A) except
      in
      the case of an assignment to a Lender, an affiliate of a Lender or an Approved
      Fund or an assignment of the entire remaining amount of the assigning Lender’s
      Commitment or Loans, the amount of the Commitment or Loans of the assigning
      Lender subject to each such assignment (determined as of the date the Assignment
      and Assumption with respect to such assignment is delivered to the
      Administrative Agent) shall not be less than $5,000,000 unless each of the
      Borrower and the Administrative Agent otherwise consent, provided
      that (1)
      no such consent of the Borrower shall be required if an Event of Default has
      occurred and is continuing and (2) such amounts shall be aggregated in respect
      of each Lender and its Affiliates or Approved Funds, if any;

     

    
      
        
        

      

      
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    (B) the
      parties to each assignment shall execute and deliver to the Administrative
      Agent
      an Assignment and Assumption, together with a processing and recordation fee
      of
      $3,500; and

     

    (C) the
      Assignee, if it shall not be a Lender, shall deliver to the Administrative
      Agent
      an Administrative Questionnaire.

     

    For
      the
      purposes of this Section 12.04, “Approved
      Fund”
means
      any Person (other than a natural person) that is engaged in making, purchasing,
      holding or investing in bank loans and similar extensions of credit in the
      ordinary course of its business and that is administered or managed by (a)
      a
      Lender, (b) an Affiliate of a Lender or (c) Person or an Affiliate of a Person
      that administers or manages a Lender.

     

    (iii) Subject
      to acceptance and recording thereof pursuant to paragraph (b)(iv) below,
      from and after the effective date specified in each Assignment and Assumption
      the Assignee thereunder shall be a party hereto and, to the extent of the
      interest assigned by such Assignment and Assumption, have the rights and
      obligations of a Lender under this Agreement, and the assigning Lender
      thereunder shall, to the extent of the interest assigned by such Assignment
      and
      Assumption, be released from its obligations under this Agreement (and, in
      the
      case of an Assignment and Assumption covering all of the assigning Lender’s
      rights and obligations under this Agreement, such Lender shall cease to be
      a
      party hereto but shall continue to be entitled to the benefits of
      Sections 5.01, 5.02, 5.03 and 12.03). Any assignment or transfer by a
      Lender of rights or obligations under this Agreement that does not comply with
      this Section 12.04(b) shall be treated for purposes of this Agreement as a
      sale
      by such Lender of a participation in such rights and obligations in accordance
      with Section 12.04(c).

     

    (iv) The
      Administrative Agent, acting for this purpose as an agent of the Borrower,
      shall
      maintain at one of its offices a copy of each Assignment and Assumption
      delivered to it and a register for the recordation of the names and addresses
      of
      the Lenders, and the Maximum Credit Amount of, and principal amount of the
      Loans
      and LC Exposures owing to, each Lender pursuant to the terms hereof from time
      to
      time (the “Register”).
      The
      entries in the Register shall be conclusive, and the Borrower, the
      Administrative Agent, the Issuing Bank and the Lenders may treat each Person
      whose name is recorded in the Register pursuant to the terms hereof as a Lender
      hereunder for all purposes of this Agreement, notwithstanding notice to the
      contrary. The Register shall be available for inspection by the Borrower, the
      Issuing Bank and any Lender, at any reasonable time and from time to time upon
      reasonable prior notice.

     

    (v) Upon
      its
      receipt of a duly completed Assignment and Assumption executed by an assigning
      Lender and an Assignee, the Assignee’s completed Administrative Questionnaire
      (unless the Assignee shall already be a Lender hereunder), the processing and
      recordation fee referred to in Section 12.04(b) and any written consent to
      such
      assignment required by Section 12.04(b), the Administrative Agent shall accept
      such Assignment and Assumption and record the information contained therein
      in
      the Register. No assignment shall be effective for purposes of this Agreement
      unless it has been recorded in the Register as provided in this Section
      12.04(b).

     

    (c) (i)
      Any
      Lender may, without the consent of the Borrower or the Administrative Agent,
      sell participations to one or more banks or other entities (a “Participant”)
      in all
      or a portion of such Lender’s rights and obligations under this Agreement
      (including all or a portion of its Commitment and the Loans owing to it);
provided
      that (A)
      such Lender’s obligations under this Agreement shall remain unchanged, (B) such
      Lender shall remain solely responsible to the other parties hereto for the
      performance of such obligations and (C) the Borrower, the Administrative Agent,
      the Issuing Bank and the other Lenders shall continue to deal solely and
      directly with such Lender in connection with such Lender’s rights and
      obligations under this Agreement. Any agreement pursuant to which a Lender
      sells
      such a participation shall provide that such Lender shall retain the sole right
      to enforce this Agreement and to approve any amendment, modification or waiver
      of any provision of this Agreement; provided
      that
      such agreement may provide that such Lender will not, without the consent of
      the
      Participant, agree to any amendment, modification or waiver that (1) requires
      the consent of each Lender directly affected thereby pursuant to the proviso
      to
      the second sentence of Section 12.02 and (2) directly affects such Participant.
      Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each
      Participant shall be entitled to the benefits of Sections 5.01, 5.02 and 5.03
      to
      the same extent as if it were a Lender and had acquired its interest by
      assignment pursuant to Section 12.04(b). To the extent permitted by law, each
      Participant also shall be entitled to the benefits of Section 12.08 as
      though it were a Lender, provided such Participant shall be subject to
      Section 4.01 as though it were a Lender.

     

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

     

    (ii) A
      Participant shall not be entitled to receive any greater payment under Section
      5.01 or 5.03 than the applicable Lender would have been entitled to receive
      with
      respect to the participation sold to such Participant, unless the sale of the
      participation to such Participant is made with the Borrower’s prior written
      consent. Any Participant that is a Non-U.S. Lender shall not be entitled to
      the
      benefits of Section 5.03 unless such Participant complies with Section
      5.03(d).

     

    (d) Any
      Lender may at any time pledge or assign a security interest in all or any
      portion of its rights under this Agreement to secure obligations of such Lender,
      including any pledge or assignment to secure obligations to a Federal Reserve
      Bank, and this Section shall not apply to any such pledge or assignment of
      a
      security interest; provided
      that no
      such pledge or assignment of a security interest shall release a Lender from
      any
      of its obligations hereunder or substitute any such pledgee or Assignee for
      such
      Lender as a party hereto.

     

    (e) Notwithstanding
      the foregoing, any Conduit Lender may assign any or all of the Loans it may
      have
      funded hereunder to its designating Lender without the consent of the Borrower
      or the Administrative Agent and without regard to the limitations set forth
      in
      Section 12.04(b). Each of the Parent Guarantor, the Borrower, each Lender and
      the Administrative Agent hereby confirms that it will not institute against
      a
      Conduit Lender or join any other Person in instituting against a Conduit Lender
      any bankruptcy, reorganization, arrangement, insolvency or liquidation
      proceeding under any state bankruptcy or similar law, for one year and one
      day
      after the payment in full of the latest maturing commercial paper note issued
      by
      such Conduit Lender; provided,
      however,
      that
      each Lender designating any Conduit Lender hereby agrees to indemnify, save
      and
      hold harmless each other party hereto for any loss, cost, damage or expense
      arising out of its inability to institute such a proceeding against such Conduit
      Lender during such period of forbearance.

     

    Section
      12.05 Survival;
      Revival; Reinstatement.

     

    (a) All
      covenants, agreements, representations and warranties made by the Parent
      Guarantor and the Borrower herein and by the Loan Parties in the certificates
      or
      other instruments delivered in connection with or pursuant to this Agreement
      or
      any other Loan Document shall be considered to have been relied upon by the
      other parties hereto and shall survive the execution and delivery of this
      Agreement and the making of any Loans and issuance of any Letters of Credit,
      regardless of any investigation made by any such other party or on its behalf
      and notwithstanding that the Administrative Agent, any other Agent, the Issuing
      Bank or any Lender may have had notice or knowledge of any Default or incorrect
      representation or warranty at the time any credit is extended hereunder, and
      shall continue in full force and effect as long as the principal of or any
      accrued interest on any Loan or any fee or any other amount payable under this
      Agreement is outstanding and unpaid or any Letter of Credit is outstanding
      and
      so long as the Commitments have not expired or terminated. The provisions of
      Section 5.01, Section 5.02, Section 5.03 and Section 12.03 and ARTICLE XI shall
      survive and remain in full force and effect regardless of the consummation
      of
      the transactions contemplated hereby, the repayment of the Loans, the expiration
      or termination of the Letters of Credit and the Commitments or the termination
      of this Agreement, any other Loan Document or any provision hereof or
      thereof.

     

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

     

    (b) To
      the
      extent that any payments on the Indebtedness or proceeds of any collateral
      are
      subsequently invalidated, declared to be fraudulent or preferential, set aside
      or required to be repaid to a trustee, debtor in possession, receiver or other
      Person under any bankruptcy law, common law or equitable cause, then to such
      extent, the Indebtedness so satisfied shall be revived and continue as if such
      payment or proceeds had not been received and the Administrative Agent’s and the
      Lenders’ Liens, security interests, rights, powers and remedies under this
      Agreement and each Loan Document shall continue in full force and effect. In
      such event, each Loan Document shall be automatically reinstated and the Parent
      Guarantor and the Borrower shall take (and shall cause each other Loan Party
      to
      take) such action as may be reasonably requested by the Administrative Agent
      and
      the Lenders to effect such reinstatement.

     

    Section
      12.06 Counterparts;
      Integration; Effectiveness.

     

    (a) This
      Agreement may be executed in counterparts (and by different parties hereto
      on
      different counterparts), each of which shall constitute an original, but all
      of
      which when taken together shall constitute a single contract.

     

    (b) This
      Agreement, the other Loan Documents and any separate letter agreements with
      respect to fees payable to the Administrative Agent constitute the entire
      contract among the parties relating to the subject matter hereof and thereof
      and
      supersede any and all previous agreements and understandings, oral or written,
      relating to the subject matter hereof and thereof. This Agreement and the other
      Loan Documents represent the final agreement among the parties hereto and
      thereto and may not be contradicted by evidence of prior, contemporaneous or
      subsequent oral agreements of the parties. There are no unwritten oral
      agreements between the parties.

     

    (c) Except
      as
      provided in Section 6.01, this Agreement shall become effective when it shall
      have been executed by the Administrative Agent and when the Administrative
      Agent
      shall have received counterparts hereof which, when taken together, bear the
      signatures of each of the other parties hereto, and thereafter shall be binding
      upon and inure to the benefit of the parties hereto and their respective
      successors and assigns. Delivery of an executed counterpart of a signature
      page
      of this Agreement by telecopy shall be effective as delivery of a manually
      executed counterpart of this Agreement.

     

    Section
      12.07 Severability.
      Any
      provision of this Agreement or any other Loan Document held to be invalid,
      illegal or unenforceable in any jurisdiction shall, as to such jurisdiction,
      be
      ineffective to the extent of such invalidity, illegality or unenforceability
      without affecting the validity, legality and enforceability of the remaining
      provisions hereof or thereof; and the invalidity of a particular provision
      in a
      particular jurisdiction shall not invalidate such provision in any other
      jurisdiction.

     

    Section
      12.08 Right
      of Setoff.
      If an
      Event of Default shall have occurred and be continuing, each Lender and each
      of
      its Affiliates is hereby authorized at any time and from time to time, to the
      fullest extent permitted by law, to set off and apply any and all deposits
      (general or special, time or demand, provisional or final) at any time held
      and
      other obligations (of whatsoever kind, including, without limitations
      obligations under Swap Agreements) at any time owing by such Lender or Affiliate
      to or for the credit or the account of the Parent Guarantor or any Subsidiary
      against any of and all the obligations of the Parent Guarantor or any Subsidiary
      owed to such Lender now or hereafter existing under this Agreement or any other
      Loan Document, irrespective of whether or not such Lender shall have made any
      demand under this Agreement or any other Loan Document and although such
      obligations may be unmatured. The rights of each Lender under this Section
      12.08
      are in addition to other rights and remedies (including other rights of setoff)
      which such Lender or its Affiliates may have.

     

    
      
        
        

      

      
        82

        
          

        

      

      
        
        

      

    

     

    Section
      12.09 GOVERNING
      LAW; JURISDICTION;
      CONSENT TO SERVICE OF PROCESS.

     

    (a) THIS
      AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
      THE LAWS OF THE STATE OF NEW YORK EXCEPT TO THE EXTENT THAT UNITED STATES
      FEDERAL LAW PERMITS ANY LENDER TO CONTRACT FOR, CHARGE, RECEIVE, RESERVE OR
      TAKE
      INTEREST AT THE RATE ALLOWED BY THE LAWS OF THE STATE WHERE SUCH LENDER IS
      LOCATED.

     

    (b) ANY
      LEGAL
      ACTION OR PROCEEDING WITH RESPECT TO THE LOAN DOCUMENTS SHALL BE BROUGHT IN
      THE
      COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE
      SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT,
      EACH PARTY HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN
      RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF
      THE
      AFORESAID COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING,
      WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS
      OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING
      OF
      ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION
      TO JURISDICTION IS NON-EXCLUSIVE AND DOES NOT PRECLUDE A PARTY FROM OBTAINING
      JURISDICTION OVER ANOTHER PARTY IN ANY COURT OTHERWISE HAVING
      JURISDICTION.

     

    (c) EACH
      PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE
      AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES
      THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT THE ADDRESS
      SPECIFIED IN SECTION 12.01 OR SUCH OTHER ADDRESS AS IS SPECIFIED PURSUANT TO
      SECTION 12.01 (OR ITS ASSIGNMENT AND ASSUMPTION), SUCH SERVICE TO BECOME
      EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT
      THE
      RIGHT OF A PARTY OR ANY HOLDER OF A NOTE TO SERVE PROCESS IN ANY OTHER MANNER
      PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST
      ANOTHER PARTY IN ANY OTHER JURISDICTION.

     

    (d) EACH
      PARTY HEREBY (i) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
      PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
      TO
      THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN;
      (ii)
      IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT
      IT
      MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY,
      PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO,
      ACTUAL DAMAGES; (iii) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE
      OR
      AGENT OF COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
      OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
      ENFORCE THE FOREGOING WAIVERS, AND (iv) ACKNOWLEDGES THAT IT HAS BEEN INDUCED
      TO
      ENTER INTO THIS AGREEMENT, THE LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED
      HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
      CONTAINED IN THIS SECTION 12.09.

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        

      

    

     

    Section
      12.10 Headings.
      Article
      and Section headings and the Table of Contents used herein are for convenience
      of reference only, are not part of this Agreement and shall not affect the
      construction of, or be taken into consideration in interpreting, this
      Agreement

     

    Section
      12.11 Confidentiality.
      Each of
      the Administrative Agent and each Lender agrees to keep confidential all
      non-public information provided to it by the Parent Guarantor, the Borrower
      or
      any of their Subsidiaries, the Administrative Agent or any Lender pursuant
      to or
      in connection with this Agreement that is designated by the provider thereof
      as
      confidential; provided
      that
      nothing herein shall prevent the Administrative Agent or any Lender from
      disclosing any such information (a) to the Administrative Agent, any other
      Lender or any affiliate thereof, (b) subject to an agreement to comply with
      the
      provisions of this Section, to any actual or prospective Transferee or any
      direct or indirect counterparty to any Swap Agreement (or any professional
      advisor to such counterparty), (c) to its employees, directors, agents,
      attorneys, accountants and other professional advisors or those of any of its
      affiliates, (d) upon the request or demand of any Governmental Authority, (e)
      in
      response to any order of any court or other Governmental Authority or as may
      otherwise be required pursuant to any Governmental Requirement, (f) if requested
      or required to do so in connection with any litigation or similar proceeding,
      (g) that has been publicly disclosed, (h) to the National Association of
      Insurance Commissioners or any similar organization or any nationally recognized
      rating agency that requires access to information about a Lender’s investment
      portfolio in connection with ratings issued with respect to such Lender, or
      (i)
      in connection with the exercise of any remedy hereunder or under any other
      Loan
      Document.

     

    Each
      Lender acknowledges that information furnished to it pursuant to this Agreement
      or the other Loan Documents may include material non-public information
      concerning the Borrower and its Affiliates and their related parties or their
      respective securities, and confirms that it has developed compliance procedures
      regarding the use of material non-public information and that it will handle
      such material non-public information in accordance with those procedures and
      applicable law, including Federal and state securities laws.

     

    All
      information, including requests for waivers and amendments, furnished by the
      Borrower or the Administrative Agent pursuant to, or in the course of
      administering, this Agreement or the other Loan Documents will be
      syndicate-level information, which may contain material non-public information
      about the Borrower and its Affiliates and their related parties or their
      respective securities. Accordingly, each Lender represents to the Borrower
      and
      the Administrative Agent that it has identified in its Administrative
      Questionnaire a credit contact who may receive information that may contain
      material non-public information in accordance with its compliance procedures
      and
      applicable law, including Federal and state securities laws.

     

    Section
      12.12 Interest
      Rate
      Limitation.
      It is
      the intention of the parties hereto that each Lender shall conform strictly
      to
      usury laws applicable to it. Notwithstanding anything herein to the contrary,
      if
      at any time the interest rate applicable to any Loan, together with all fees,
      charges and other amounts which are treated as interest on such Loan under
      applicable law (collectively the “Charges”),
      shall
      exceed the maximum lawful rate (the “Maximum
      Rate”)
      which
      may be contracted for, charged, taken, received or reserved by the Lender
      holding such Loan in accordance with applicable law, the rate of interest
      payable in respect of such Loan, together with all Charges payable in respect
      thereof, shall be limited to the Maximum Rate and, to the extent lawful, the
      interest and Charges that would have been payable in respect of such Loan but
      were not payable as a result of the operation of this Section shall be cumulated
      and the interest and Charges payable to such Lender in respect of other Loans
      or
      periods shall be increased (but not above the Maximum Rate therefor) until
      such
      cumulated amount, together with interest thereon at the Federal Funds Effective
      Rate to the date of repayment, shall have been received by such
      Lender.

     

    
      
        
        

      

      
        84

        
          

        

      

      
        
        

      

    

     

    Section
      12.13 No
      Third Party Beneficiaries.
      This
      Agreement, the other Loan Documents, and the agreement of the Lenders to make
      Loans and the Issuing Bank to issue, amend, renew or extend Letters of Credit
      hereunder are solely for the benefit of the Borrower, and no other Person
      (including, without limitation, the Parent Guarantor and any Subsidiary of
      the
      Borrower, any obligor, contractor, subcontractor, supplier or materialman)
      shall
      have any rights, claims, remedies or privileges hereunder or under any other
      Loan Document against the Administrative Agent, any other Agent, the Issuing
      Bank or any Lender for any reason whatsoever. There are no third party
      beneficiaries.

     

    Section
      12.14 Collateral
      Matters; Swap Agreements.
      The
      benefit of the Security Instruments and of the provisions of this Agreement
      relating to any collateral securing the Indebtedness shall also extend to and
      be
      available to those Lenders or their Affiliates which are counterparties to
      any
      Swap Agreement with the Parent Guarantor, the Borrower or any of its
      Subsidiaries on a pro
      rata
      basis in
      respect of any obligations of the Parent Guarantor, the Borrower or any of
      its
      Subsidiaries which arise under any such Swap Agreement while such Person or
      its
      Affiliate is a Lender, but only while such Person or its Affiliate is a Lender,
      including any Swap Agreements between such Persons in existence prior to the
      date hereof. No Lender or any Affiliate of a Lender shall have any voting rights
      under any Loan Document as a result of the existence of obligations owed to
      it
      under any such Swap Agreements.

     

    Section
      12.15 Acknowledgements.
      Each of
      the Parent Guarantor and the Borrower hereby acknowledges that:

     

    (a) it
      has
      been advised by counsel in the negotiation, execution and delivery of this
      Agreement and the other Loan Documents;

     

    (b) neither
      the Administrative Agent nor any Lender has any fiduciary relationship with
      or
      duty to the Parent Guarantor or the Borrower arising out of or in connection
      with this Agreement or any of the other Loan Documents, and the relationship
      between Administrative Agent and Lenders, on one hand, and the Parent Guarantor
      and the Borrower, on the other hand, in connection herewith or therewith is
      solely that of debtor and creditor; and

     

    no
      joint
      venture is created hereby or by the other Loan Documents or otherwise exists
      by
      virtue of the transactions contemplated hereby among the Lenders or among the
      Parent Guarantor, the Borrower and the Lenders.

     

    Section
      12.16 USA
      Patriot Act Notice.
      Each
      Lender hereby notifies the Parent Guarantor that pursuant to the requirements
      of
      the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
      2001)) (the “Act”),
      it is
      required to obtain, verify and record information that identifies the Parent
      Guarantor and the Borrower, which information includes the name and address
      of
      the Parent Guarantor and the Borrower and other information that will allow
      such
      Lender to identify the Parent Guarantor in accordance with the
      Act.

     

    [SIGNATURES
      BEGIN NEXT PAGE]

     

    
      
        
        

      

      
        85

        
          

        

      

      
        
        

      

    

    
       

    

    The
      parties hereto have caused this Agreement to be duly executed as of the day
      and
      year first above written.

     

    
      	 	 	 
	
              BORROWER:

            	
              ATLAS
                ENERGY OPERATING COMPANY, LLC

            
	 	 
	 	
              By:  Atlas Energy Resources, LLC,

              its
                sole member

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
	 	
              
Matthew
              A. Jones
	 	
              Chief
                Financial Officer

            

    

    
       

      
        	 	 	 
	
                
                  PARENT
                    GUARANTOR:

                

              	
                ATLAS
                  ENERGY RESOURCES, LLC,
                  

                a
                  Delaware limited liability company

              
	 
 	 
 	 
 
	
              	By:  	/s/ 
	 	
                
Matthew
                A. Jones
	 	
                
                  Chief
                    Financial Officer

                

              

      

       

      
        
          
            SIGNATURE
              PAGE  1

            TO
              CREDIT AGREEMENT

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      	 	 	 
	
               

            	
              JPMORGAN
                CHASE BANK, N.A.,
                as
                a Lender 

              and
                as Administrative
                Agent

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
	 	Name:   	
              
Elizabeth
              Pavlas
	 	Title:	Vice
              President

    

     

    
      
        
          SIGNATURE
            PAGE 2

          TO
            CREDIT AGREEMENT

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	
               

            	
              WACHOVIA BANK, NATIONAL 

              ASSOCIATION,
                as
                a Lender and as Syndication
                Agent

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
	 	Name:   	
              
Jay
              Buckman
	 	Title:	Vice
              President

    

     

    
      
        
          SIGNATURE
            PAGE 3

          TO
            CREDIT AGREEMENT

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	
               

            	
              
                BANK
                  OF AMERICA, N.A.,as
                  a Lender and as 

                Co-Documentation
                  Agent

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
	 	Name:   	
              
Adam
              H. Fey
	 	Title:	Vice
              President

    

     

    
      
        
          SIGNATURE
            PAGE 4

          TO
            CREDIT AGREEMENT

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	
               

            	
              
                BNP
                  PARIBAS,
                  as
                  a Lender and as 

                Co-Documentation
                  Agent

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
	 	Name:   	
              
Douglas
              R. Liftman
	 	Title:	Managing
              Director

    

     

    
      	 	 	 
	
            	By:  	/s/ 
	 	Name:   	
              
Greg
              Smothers
	 	Title:	Vice
              President

    

    
       

      
        
          
            SIGNATURE
              PAGE 5

            TO
              CREDIT AGREEMENT

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      	 	 	 
	
               

            	
              ROYAL BANK OF CANADA,
                as
                a Lender and as 

              Co-Documentation
                Agent

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
	 	Name:   	
              
Linda
              M. Stephens
	 	Title:	Authorized
              Signatory

    

    
       

      
        
          
            SIGNATURE
              PAGE 6

            TO
              CREDIT AGREEMENT

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      	 	 	 
	
               

            	
              UBS LOAN FINANCE LLC,
                as
                a Lender and as 

              Co-Documentation
                Agent

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
	 	Name:   	
              
Richard
              L. Tavrow
	 	Title:	Director

    

    
      
         

        
          	 	 	 
	
                	By:  	/s/ 
	 	Name:   	
                  
Irja
                  R. Otsa
	 	Title:	Associate
                  Director

        

        
          
            
               

              
                
                  
                    SIGNATURE
                      PAGE 7

                    TO
                      CREDIT AGREEMENT

                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

            

            
               

              
                	 	 	 
	
                         

                      	
                        BMO
                          CAPITAL MARKETS FINANCING, 

                        INC.,
                          as a Lender

                      
	 
 	 
 	 
 
	
                      	By:  	/s/ 
	 	Name:   	
                        
James
                        V. Ducote
	 	Title:	Director

              

              
                
                  
                    
                      
                         

                        
                          
                            
                              SIGNATURE
                                PAGE 8

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                                CREDIT AGREEMENT

                            

                          

                          
                            
                            

                            
                              

                            

                          

                          
                            
                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  	 	 	 
	
                           

                        	
                          THE
                            BANK OF NOVA SCOTIA,
                            as a Lender

                        
	 
 	 
 	 
 
	
                        	By:  	/s/ 
	 	Name:   	
                          
Andrew
                          Ostrov
	 	Title:	Director

                

                
                  
                    
                      
                        
                           

                          
                            
                               SIGNATURE
                                PAGE  9
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                                  CREDIT AGREEMENT

                              

                            

                            
                              
                              

                              
                                

                              

                            

                            
                              
                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        	 	 	 
	
                 

              	
                CALYON
                  NEW YORK BRANCH,
                  as a Lender

              
	 
 	 
 	 
 
	
              	By:  	/s/ 
	 	Name:   	
                
Dennis
                Petito
	 	Title:	Managing
                Director

      

      
        
          
            
              
                
                   

                  
                    
                      	 	 	 
	
                            	By:  	/s/ 
	 	Name:   	
                              
Tom
                              Byargeon
	 	Title:	Managing
                              Director

                    

                    
                      
                        
                          
                            
                               

                              
                                
                                  
                                    SIGNATURE
                                      PAGE  10

                                    TO
                                      CREDIT AGREEMENT

                                  

                                

                                
                                  
                                  

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                                 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      	 	 	 
	
               

            	
              BANK
                OF SCOTLAND,
                as a Lender

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
	 	Name:   	
              
Karen
              Weich
	 	Title:	Vice
              President

    

    
      
        
          
            
               

              
                
                  
                    SIGNATURE
                      PAGE  11

                    TO
                      CREDIT AGREEMENT

                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

            

          

        

      

    

     

    
      
        	 	 	 
	
                 

              	
                THE ROYAL
                  BANK OF SCOTLAND plc,
                  as a Lender

              
	 
 	 
 	 
 
	
              	By:  	/s/ 
	 	Name:   	
                
Robert
                E. Poirrier, Jr.
	 	Title:	Vice
                President

      

      
        
          
            
              
                 

                
                  
                    
                      SIGNATURE
                        PAGE  12

                      TO
                        CREDIT AGREEMENT

                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

              

            

          

        

      

    

     

    
      
        	 	 	 
	
                 

              	
                RZB
                  FINANCE LLC,
                  as a Lender

              
	 
 	 
 	 
 
	
              	By:  	/s/ 
	 	Name:   	
                
Shirley
                Ritch
	 	Title:	Assistant
                Vice President

      

      
        
          
            
              
                
                   

                  
                    
                      	 	 	 
	
                            	By:  	/s/ 
	 	Name:   	
                              
John
                              A. Valiska
	 	Title:	First
                              Vice President

                    

                    
                      
                        
                          
                            
                               

                              
                                
                                  
                                    SIGNATURE
                                      PAGE  13

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                CITIBANK,
                  N.A.,
                  as a Lender

              
	 
 	 
 	 
 
	
              	By:  	/s/ 
	 	Name:   	
                
Dale
                T. Wilson
	 	Title:	Senior
                Vice President

      

      
        
          
            
              
                 

                
                  
                    
                      SIGNATURE
                        PAGE  14

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                        CREDIT AGREEMENT

                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

              

            

          

        

      

    

     

    
      
        
          	 	 	 
	
                   

                	
                  SOCIETE
                    GENERALE,
                    as a Lender

                
	 
 	 
 	 
 
	
                	By:  	/s/ 
	 	Name:   	
                  
Stephen
                  W. Warfel
	 	Title:	Director

        

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                               

                              
                                
                                  
                                    SIGNATURE
                                      PAGE  15

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                                      CREDIT AGREEMENT

                                  

                                

                                
                                  
                                  

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                            

                          

                        

                      

                    

                     

                  

                

              

            

          

        

      

    

    
      
        
          	 	 	 
	
                   

                	
                  WELLS
                    FARGO BANK, N.A.,
                    as a Lender

                
	 
 	 
 	 
 
	
                	By:  	/s/ 
	 	Name:   	
                  
Dustin
                  S. Hansen
	 	Title:	Vice
                  President

        

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                 

                                
                                  
                                    
                                      SIGNATURE
                                        PAGE  16

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                                        CREDIT AGREEMENT

                                    

                                  

                                  
                                    
                                    

                                    
                                      

                                    

                                  

                                  
                                    
                                    

                                  

                                

                              

                            

                          

                        

                      

                       

                    

                    
                      
                        	 	 	 
	
                                 

                              	
                                U.S.
                                  BANK NATIONAL ASSOCIATION,
                                  as a Lender

                              
	 
 	 
 	 
 
	
                              	By:  	/s/ 
	 	Name:   	
                                
Justin
                                M. Alexander
	 	Title:	Vice
                                President

                      

                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                             

                                            
                                              
                                                
                                                  SIGNATURE
                                                    PAGE  17

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                WESTLB
                  AG NEW YORK BRANCH 

                (f/k/a
                  WESTDEUTSCHE LANDESBANK 

                GIROZENTRALE),
                  as a Lender

              
	 
 	 
 	 
 
	
              	By:  	/s/ 
	 	Name:   	
                
Duncan
                Robertson
	 	Title:	Executive
                Director

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                             

                          

                        

                      

                    

                  

                  
                    
                      	 	 	 
	
                            	By:  	/s/ 
	 	Name:   	
                              
Felicia
                              La Forgia
	 	Title:	Director

                    

                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                           

                                          
                                            
                                              
                                                SIGNATURE
                                                  PAGE  18

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                                                  CREDIT AGREEMENT

                                              

                                            

                                            
                                              
                                              

                                              
                                                

                                              

                                            

                                            
                                              
                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                                 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
          	 	 	 
	
                   

                	
                  COMPASS
                    BANK,
                    as a Lender

                
	 
 	 
 	 
 
	
                	By:  	/s/ 
	 	Name:   	
                  
Adrianne
                  D. Griffin
	 	Title:	Vice
                  President

        

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                               

                              
                                
                                  
                                    SIGNATURE
                                      PAGE  19

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                                      CREDIT AGREEMENT

                                  

                                

                                
                                  
                                  

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                            

                          

                        

                      

                    

                     

                  

                

              

            

          

        

      

    

    
      	 	 	 
	
               

            	
              COMERICA
                BANK,
                as a Lender

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
	 	Name:   	
              
Josh
              Strong
	 	Title:	Assistant
              Vice President

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                           

                          
                            
                              
                                SIGNATURE
                                  PAGE  20

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                                  CREDIT AGREEMENT

                              

                            

                            
                              
                              

                              
                                

                              

                            

                            
                              
                              

                            

                          

                        

                      

                    

                  

                

                 

              

            

          

        

      

    

    
      	 	 	 
	
               

            	
              DZ
                BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK 

              FRANKFURT AM MAIN, NEW YORK BRANCH,
                as a Lender

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
	 	Name:   	
              
Richard
              Hagemann
	 	Title:	First
              Vice President

    

    
      
        
          
            
              
                
                   

                  
                    	 	 	 
	
                          	By:  	/s/ 
	 	Name:   	
                            
Daria
                            A. Pishko
	 	Title:	First
                            Vice President

                  

                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                           

                                          
                                            
                                              
                                                SIGNATURE
                                                  PAGE  21

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                                                  CREDIT AGREEMENT

                                              

                                            

                                            
                                              
                                              

                                              
                                                

                                              

                                            

                                            
                                              
                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                                 

                              

                            

                          

                        

                      

                    

                  

                

                
                  	 	 	 
	
                           

                        	
                          KEYBANK,
                            NA,
                            as a Lender

                        
	 
 	 
 	 
 
	
                        	By:  	/s/ 
	 	Name:   	
                          
Thomas
                          Rajan
	 	Title:	Senior
                          Vice President

                

                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                     

                                    
                                      
                                        
                                          SIGNATURE
                                            PAGE  22

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                                            CREDIT AGREEMENT

                                        

                                      

                                      
                                        
                                        

                                        
                                          

                                        

                                      

                                      
                                        
                                        

                                      

                                    

                                  

                                

                              

                            

                          

                           

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        	 	 	 
	
                 

              	
                UNION
                  BANK OF CALIFORNIA, N.A.,
                  as a Lender

              
	 
 	 
 	 
 
	
              	By:  	/s/ 
	 	Name:   	
                
Jarrod
                Bourgeois
	 	Title:	Vice
                President

      

      
        
          
            
              
                
                  
                    
                      
                         

                        
                          
                            
                              SIGNATURE
                                PAGE  23

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                                CREDIT AGREEMENT

                            

                          

                          
                            
                            

                            
                              

                            

                          

                          
                            
                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      	 	 	 
	
               

            	
              SUMITOMO
                MITSUI BANKING CORPORATION,
                as a Lender

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
	 	Name:   	
              
William
              M. Ginn
	 	Title:	General
              Manager

    

    
      
        
          
            
              
                
                  
                    
                       

                      
                        
                          
                            SIGNATURE
                              PAGE  24

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                              CREDIT AGREEMENT

                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                    

                  

                

              

            

             

          

        

      

    

    
      
        	 	 	 
	
                 

              	
                MIZUHO
                  CORPORATE BANK, LTD.,
                  as a Lender

              
	 
 	 
 	 
 
	
              	By:  	/s/ 
	 	Name:   	
                
Hidekatsu
                Take
	 	Title:	Deputy
                General Manager

      

      
        
          
            
              
                
                  
                    
                       

                      
                        
                          
                            SIGNATURE
                              PAGE  25

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                              CREDIT AGREEMENT

                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                    

                  

                

              

            

             

          

        

      

    

    
      
        	 	 	 
	
                 

              	
                FORTIS
                  CAPITAL CORP.,
                  as a Lender

              
	 
 	 
 	 
 
	
              	By:  	/s/ 
	 	Name:   	
                
David
                Montgomery
	 	Title:	 Senior
                Vice President

      

      
        
          
            
               

              
                
                  	 	 	 
	
                        	By:  	/s/ 
	 	Name:   	
                          
Darrell
                          Holley
	 	Title:	Managing
                          Director

                

                
                  
                    
                      
                        
                          
                            
                              
                                
                                   

                                  
                                    
                                      
                                        SIGNATURE
                                          PAGE  26

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                                          CREDIT AGREEMENT

                                      

                                    

                                    
                                      
                                      

                                      
                                        

                                      

                                    

                                    
                                      
                                      

                                    

                                  

                                

                              

                            

                          

                        

                         

                      

                    

                  

                

              

            

          

        

      

    

    
      
        	 	 	 
	
                 

              	
                GUARANTY
                  BANK,
                  as a Lender

              
	 
 	 
 	 
 
	
              	By:  	/s/ 
	 	Name:   	
                
Kelly
                L. Elmore III
	 	Title:	Senior
                Vice President

      

      
        
          
            
              
                
                  
                    
                      
                         

                        
                          
                            
                              SIGNATURE
                                PAGE  27

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                                CREDIT AGREEMENT

                            

                          

                          
                            
                            

                            
                              

                            

                          

                          
                            
                            

                          

                        

                      

                    

                  

                

              

               

            

          

        

      

    

    
      
        	 	 	 
	
                 

              	
                CITIZENS
                  BANK OF PENNSYLVANIA,
                  as a Lender

              
	 
 	 
 	 
 
	
              	By:  	/s/ 
	 	Name:   	
                
Euclid
                B. Noble
	 	Title:	Vice
                President

      

      
        
           

          
            
              
                SIGNATURE
                  PAGE  28

                TO
                  CREDIT AGREEMENT

              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

    

     

    ANNEX
      I

    LIST
      OF MAXIMUM CREDIT AMOUNTS

     

    
      	
              Name
                of Lender

            	 	
              Applicable
                Percentage

            	 	
              Maximum
                Credit Amount

            	 
	
              JPMorgan
                Chase Bank, N.A.

            	 	 	
              5.2941

            	
              %

            	
              $

            	
              45,000,000

            	 
	
              Wachovia
                Bank, National Association

            	 	 	
              4.8235

            	
              %

            	
              $

            	
              41,000,000

            	 
	
              Bank
                of America, N.A.

            	 	 	
              4.8235

            	
              %

            	
              $

            	
              41,000,000

            	 
	
              BNP
                Paribas

            	 	 	
              4.8235

            	
              %

            	
              $

            	
              41,000,000

            	 
	
              Royal
                Bank of Canada

            	 	 	
              4.8235

            	
              %

            	
              $

            	
              41,000,000

            	 
	
              UBS
                Loan Finance LLC

            	 	 	
              4.8235

            	
              %

            	
              $

            	
              41,000,000

            	 
	
              BMO
                Capital Markets Financing, Inc.

            	 	 	
              4.1176

            	
              %

            	
              $

            	
              35,000,000

            	 
	
              The
                Bank of Nova Scotia

            	 	 	
              4.1176

            	
              %

            	
              $

            	
              35,000,000

            	 
	
              Calyon
                New York Branch

            	 	 	
              4.1176

            	
              %

            	
              $

            	
              35,000,000

            	 
	
              Bank
                of Scotland New York Branch

            	 	 	
              4.1176

            	
              %

            	
              $

            	
              35,000,000

            	 
	
              The
                Royal Bank of Scotland plc

            	 	 	
              3.5294

            	
              %

            	
              $

            	
              30,000,000

            	 
	
              RZB
                Finance LLC

            	 	 	
              3.5294

            	
              %

            	
              $

            	
              30,000,000

            	 
	
              Citibank,
                N.A.

            	 	 	
              3.5294

            	
              %

            	
              $

            	
              30,000,000

            	 
	
              Societe
                Generale

            	 	 	
              3.5294

            	
              %

            	
              $

            	
              30,000,000

            	 
	
              Wells
                Fargo Bank, N.A.

            	 	 	
              3.5294

            	
              %

            	
              $

            	
              30,000,000

            	 
	
              U.S.
                Bank National Association

            	 	 	
              3.5294

            	
              %

            	
              $

            	
              30,000,000

            	 
	
              WestLB
                AG, New York Branch

            	 	 	
              3.5294

            	
              %

            	
              $

            	
              30,000,000

            	 
	
              Compass
                Bank

            	 	 	
              3.2353

            	
              %

            	
              $

            	
              27,500,000

            	 
	
              Comerica
                Bank

            	 	 	
              3.2353

            	
              %

            	
              $

            	
              27,500,000

            	 
	
              DZ
                Bank AG

            	 	 	
              3.2353

            	
              %

            	
              $

            	
              27,500,000

            	 
	
              KeyBank
                National Association

            	 	 	
              3.2353

            	
              %

            	
              $

            	
              27,500,000

            	 
	
              Union
                Bank of California, N.A.

            	 	 	
              3.2353

            	
              %

            	
              $

            	
              27,500,000

            	 
	
              Sumitomo
                Mitsui Banking Corporation

            	 	 	
              3.2353

            	
              %

            	
              $

            	
              27,500,000

            	 
	
              Mizuho
                Corporate Bank, Ltd.

            	 	 	
              2.9412

            	
              %

            	
              $

            	
              25,000,000

            	 
	
              Fortis
                Capital Corp.

            	 	 	
              2.9412

            	
              %

            	
              $

            	
              25,000,000

            	 
	
              Guaranty
                Bank

            	 	 	
              2.9412

            	
              %

            	
              $

            	
              25,000,000

            	 
	
              Citizens
                Bank of Pennsylvania

            	 	 	
              1.1765

            	
              %

            	
              $

            	
              10,000,000

            	 
	
              Total

            	 	 	
              100

            	
              %

            	
              $

            	
              850,000,000

            	 

    

    

    
      
        
          Annex
            I -
            1

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX
      II

    SOURCES
      AND USES TABLE

     

    
      	
              Sources:

            	 	 	 	 
	
              Senior
                Secured Revolving Facility

            	 	
              $

            	
              650,000,000*

            	 
	
              Equity
                Commitment                           

            	 	
              $

            	
              600,000,000

            	 
	
              Total
                Sources

            	 	
              $

            	
              1,250,000,000

            	 
	
              Uses:

            	 	 	 	 
	
              Purchase
                Price

            	 	
              $

            	
              1,225,000,000

            	 
	
              Payment
                of Fees and Expenses

            	 	
              $

            	
              25,000,000

            	 
	
              Total
                Uses

            	 	
              $

            	
              1,250,000,000

            	 

    

    

    *May
      be
      increased to $725,000,000.

     

    
      
        Annex
          II - 1

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A 

    [FORM
      OF] NOTE

     

    
      	$[__________]	
              [_________],
                200[__]

            

    

     

    FOR
      VALUE
      RECEIVED, Atlas Energy Operating Company, LLC, a Delaware limited liability
      company (the “Borrower”)
      hereby
      promises to pay to the order of [_______] (the “Lender”),
      at
      the principal office of JPMorgan Chase Bank, N.A. (the “Administrative
      Agent”),
      at
      [___________], the principal sum of [___________] Dollars ($[___________])
      (or
      such lesser amount as shall equal the aggregate unpaid principal amount of
      the
      Loans made by the Lender to the Borrower under the Credit Agreement, as
      hereinafter defined), in lawful money of the United States of America and in
      immediately available funds, on the dates and in the principal amounts provided
      in the Credit Agreement, and to pay interest on the unpaid principal amount
      of
      each such Loan, at such office, in like money and funds, for the period
      commencing on the date of such Loan until such Loan shall be paid in full,
      at
      the rates per annum and on the dates provided in the Credit
      Agreement.

     

    The
      date,
      amount, Type, interest rate, Interest Period and maturity of each Loan made
      by
      the Lender to the Borrower, and each payment made on account of the principal
      thereof, shall be recorded by the Lender on its books and, prior to any transfer
      of this Note, may be endorsed by the Lender on the schedules attached hereto
      or
      any continuation thereof or on any separate record maintained by the Lender.
      Failure to make any such notation or to attach a schedule shall not affect
      any
      Lender’s or the Borrower’s rights or obligations in respect of such Loans or
      affect the validity of such transfer by any Lender of this Note.

     

    This
      Note
      is one of the Notes referred to in the Credit Agreement, dated as of June 29,
      2007, among Atlas Energy Resources, LLC, as parent guarantor, the Borrower,
      the
      Administrative Agent, and the other agents and lenders signatory thereto
      (including the Lender), and evidences Loans made by the Lender thereunder (such
      Credit Agreement as the same may be amended, supplemented, restated or otherwise
      modified from time to time, the “Credit
      Agreement”).
      Capitalized terms used in this Note have the respective meanings assigned to
      them in the Credit Agreement.

     

    This
      Note
      is issued pursuant to the Credit Agreement and is entitled to the benefits
      provided for in the Credit Agreement and the other Loan Documents. The Credit
      Agreement provides for the acceleration of the maturity of this Note upon the
      occurrence of certain events, for prepayments of Loans upon the terms and
      conditions specified therein and other provisions relevant to this
      Note.

     

    THIS
      NOTE
      SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
      OF
      NEW YORK.

    
       

      
        
          	 	 	 
	
                   

                	
                  ATLAS
                    ENERGY OPERATING COMPANY, LLC

                   

                  By: Atlas Energy Resources, LLC, its sole
                    member

                
	 
 	 
 	 
 
	
                	By:  	 
	 	Name:   	
                  

                
	 	Title:	
                  
 
	 	 	
                  
 

        

        
          
             

            
              
                
                  Exhibit A-1

                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

      

    

    EXHIBIT
      B

    FORM
      OF BORROWING REQUEST

     

    [______________],
      200[__]

     

    Atlas
      Energy Operating Company, LLC, a Delaware limited liability company (the
“Borrower”),
      pursuant to Section 2.03 of the Credit Agreement dated as of June 29, 2007,
      (together with all amendments, restatements, supplements or other modifications
      thereto, the “Credit
      Agreement”),
      among
      the Parent Guarantor, the Borrower, JPMorgan Chase Bank, N.A., as Administrative
      Agent and the other agents and lenders (the “Lenders”)
      which
      are or become parties thereto (unless otherwise defined herein, each capitalized
      term used herein is defined in the Credit Agreement), hereby requests a
      Borrowing as follows:

     

    (i) Aggregate
      amount of the requested Borrowing is $[___________]; 

     

    (ii) Date
      of
      such Borrowing is [___________], 200[__];

     

    (iii) Requested
      Borrowing is to be [an ABR Borrowing] [a Eurodollar Borrowing];

     

    (iv) In
      the
      case of a Eurodollar Borrowing, the initial Interest Period applicable thereto
      is [___________];

     

    (v) Amount
      of
      Borrowing Base [add if applicable: the Conforming Borrowing Base] in effect
      on
      the date hereof is $[___________]; [$[___________] and
      $[___________]];

     

    (vi) Total
      Revolving Credit Exposures [add if applicable: the Conforming Borrowing Base]
      on
      the date hereof (i.e., outstanding principal amount of Loans and total LC
      Exposure) is $[___________]; [$[___________] and
      $[___________]];and

     

    (vii) Pro
      forma
      total Revolving Credit Exposures [add if applicable: the Conforming Borrowing
      Base] (giving effect to the requested Borrowing) is $[___________];
      [$[____________] and $[___________]];and

     

    (viii) Location
      and number of the Borrower’s account to which funds are to be disbursed, which
      shall comply with the requirements of Section 2.05 of the Credit Agreement,
      is
      as follows:

     

    [   
 ]

    [    
]

    [    
]

    [    
]

    [   
 ]

    

    
      
        
          Exhibit B-1

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      undersigned certifies that he/she is the [_________] of the Parent Guarantor
      and
      the Borrower, and that as such he/she is authorized to execute this certificate
      on behalf of each of them. The undersigned further certifies, represents and
      warrants on behalf of the Parent Guarantor and the Borrower that the Borrower
      is
      entitled to receive the requested Borrowing under the terms and conditions
      of
      the Credit Agreement.

    
       

      
        
          	 	 	 
	
                  PARENT
                    GUARANTOR:

                	
                  ATLAS
                    ENERGY RESOURCES, LLC

                
	 
 	 
 	 
 
	
                	By:  	 
	 	Name:   	
                  

                
	 	Title:	 

        

        
          
            
              
                 

                
                  
                    	 	 	 
	
                            
                              BORROWER: 

                            

                          	
                            ATLAS
                              ENERGY OPERATING COMPANY, LLC

                             

                            
                              By:
                                Atlas Energy Resources, LLC, its sole member

                            

                          
	 
 	 
 	 
 
	
                          	By:  	 
	 	Name:   	
                            

                          
	 	Title:	 

                  

                  
                    
                       

                      
                        
                          
                            Exhibit B-2

                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    EXHIBIT
      C

    FORM
      OF INTEREST ELECTION REQUEST

     

    [_________],
      200[__]

     

    Atlas
      Energy Operating Company, LLC, a Delaware limited liability company (the
“Borrower”),
      pursuant to Section 2.04 of the Credit Agreement dated as of June 29, 2007,
      (together with all amendments, restatements, supplements or other modifications
      thereto, the “Credit
      Agreement”),
      among
      Atlas Energy Resources, LLC, as parent guarantor, the Borrower, JPMorgan Chase
      Bank, N.A., as Administrative Agent and the other agents and lenders (the
“Lenders”)
      which
      are or become parties thereto (unless otherwise defined herein, each capitalized
      term used herein is defined in the Credit Agreement), hereby makes an Interest
      Election Request as follows:

     

    (i) The
      Borrowing to which this Interest Election Request applies, and if different
      options are being elected with respect to different portions thereof, the
      portions thereof to be allocated to each resulting Borrowing (in which case
      the
      information specified pursuant to (iii) and (iv) below shall be specified for
      each resulting Borrowing) is [___________]; 

     

    (ii) The
      effective date of the election made pursuant to this Interest Election Request
      is [___________], 200[__];[and]

     

    (iii) The
      resulting Borrowing is to be [an ABR Borrowing] [a Eurodollar Borrowing][;
      and

     

    [(iv) [If
      the
      resulting Borrowing is a Eurodollar Borrowing] The Interest Period applicable
      to
      the resulting Borrowing after giving effect to such election is
      [___________]].

     

    The
      undersigned certifies that he/she is the [___________] of the Parent Guarantor
      and the Borrower, and that as such he/she is authorized to execute this
      certificate on behalf of each of them. The undersigned further certifies,
      represents and warrants on behalf of the Parent Guarantor and the Borrower
      that
      the Borrower is entitled to receive the requested continuation or conversion
      under the terms and conditions of the Credit Agreement.

    
       

      
        
          	 	 	 
	
                  
                    PARENT
                      GUARANTOR:

                  

                	
                  ATLAS
                    ENERGY RESOURCES, LLC

                
	 
 	 
 	 
 
	
                	By:  	 
	
                	Name:   	
                  

                
	 	Title:	 

        

        
          
            
              
                 

                
                  
                    	 	 	 
	
                            
                              
                                BORROWER: 

                              

                            

                          	
                            ATLAS
                              ENERGY OPERATING COMPANY, LLC

                             

                            By: Atlas Energy Resources, LLC,
                              its sole
                              member

                          
	 
 	 
 	 
 
	
                          	By:  	 
	 	Name:   	
                            

                          
	 	Title:	 

                  

                  
                    
                       

                      
                        
                          
                            Exhibit C-1

                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    EXHIBIT
      D

    [FORM
      OF]

    COMPLIANCE
      CERTIFICATE

     

    The
      undersigned hereby certifies that he/she is the [___________] of Atlas Energy
      Resources, LLC, a Delaware limited liability company (the “Parent
      Guarantor”),
      and
      that as such he/she is authorized to execute this certificate on behalf of
      the
      Parent Guarantor and Atlas Energy Operating Company, LLC, a Delaware limited
      liability company (the “Borrower”).
      With
      reference to the Credit Agreement dated as of June 29, 2007, (together with
      all
      amendments, restatements, supplements or other modifications thereto being
      the
“Agreement”),
      among
      the Parent Guarantor, the Borrower, JPMorgan Chase Bank, N.A., as Administrative
      Agent, and the other agents and lenders (the “Lenders”)
      which
      are or become a party thereto, and such Lenders, the undersigned represents
      and
      warrants as follows (each capitalized term used herein having the same meaning
      given to it in the Agreement unless otherwise specified):

     

    (a) The
      representations and warranties of the Parent Guarantor and the Borrower
      contained in Article VII of the Agreement and in the Loan Documents and
      otherwise made in writing by or on behalf of either the Parent Guarantor or
      the
      Borrower pursuant to the Agreement and the Loan Documents were true and correct
      when made, and are repeated at and as of the time of delivery hereof and are
      true and correct in all material respects at and as of the time of delivery
      hereof, except to the extent such representations and warranties are expressly
      limited to an earlier date or the Majority Lenders have expressly consented
      in
      writing to the contrary.

     

    (b) The
      Parent Guarantor and the Borrower has performed and complied with all agreements
      and conditions contained in the Agreement and in the Loan Documents required
      to
      be performed or complied with by it prior to or at the time of delivery hereof
      [or specify default and describe].

     

    (c) Since
      December 31, 2006, no change has occurred, either in any case or in the
      aggregate, in the condition, financial or otherwise, of the Parent Guarantor,
      the Borrower or any Subsidiary which could reasonably be expected to have a
      Material Adverse Effect [or specify event].

     

    (d) There
      exists no Default or Event of Default [or specify Default and
      describe].

     

    (e) Attached
      hereto are the detailed computations necessary to determine whether the Parent
      Guarantor is in compliance with Section
      9.01
      as of
      the end of the [fiscal quarter][fiscal year] ending [___________].

     

    EXECUTED
      AND DELIVERED this [___________] day of [___________].

    
       

      
        
          	 	 	 
	
                   

                	
                  
                    ATLAS
                      ENERGY RESOURCES, LLC

                  

                
	 
 	 
 	 
 
	
                	By:  	 
	 	Name:   	
                  

                
	 	Title:	
                  
 
	 	 	
                  
 

        

        
          
             

            
              
                
                  Exhibit D-1

                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

      

    

    EXHIBIT
      E-1

    FORM
      OF LEGAL OPINION

     

    
      
        
          Exhibit E-1-1

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E-2

    FORM
      OF LEGAL OPINION OF LOCAL COUNSEL

     

    [____________]
      [___], 2007

    

    JPMorgan
      Chase Bank, N.A.

    as
      Administrative Agent

    

    
      	 	
              Re:

            	
              Credit
                Agreement dated as of June 29, 2007 among Atlas Energy Resources,
                LLC, a
                Delaware limited liability company, as parent guarantor, Atlas Energy
                Operating Company, LLC, a Delaware limited liability company (the
                “Borrower”),
                the banks now or hereafter signatory thereto (the “Lenders”),
                and JPMorgan Chase Bank, N.A., as administrative agent for the Lenders
                (in
                such capacity the “Administrative
                Agent”),
                and other agents for the Lenders (the “Credit
                Agreement”).

            

    

    

    Gentlemen:

    

    We
      have
      acted as special [___________] counsel to the Borrower and its Subsidiaries,
      including [___________], a [___________] (“Mortgagor”),
      in
      connection with the execution and delivery of that certain Deed of Trust,
      Mortgage, Assignment of As-Extracted Collateral, Security Agreement and
      Financing Statement dated June 29, 2007 by the Mortgagor in favor of the
      Administrative Agent, for its benefit and the benefit of the Lenders and others
      (the “Mortgage”).
      This
      opinion is being furnished to you pursuant to Section 6.01(g) of the Credit
      Agreement. All capitalized terms not defined herein shall have the same meanings
      assigned to them in the Credit Agreement. In connection with the opinions set
      forth herein, we have examined originals, or copies certified or otherwise
      identified to our satisfaction, of the following documents (the “Loan
      Documents”):

    

    [(A)] the
      Mortgage[; and] 

    

    
      	 	
              [(B)

            	
              the
                UCC-1 Financing Statement covering as-extracted collateral and goods
                that
                are or are to become fixtures prepared in connection with the Mortgage
                (the “Financing
                Statement”)].1 

            

    

    

    In
      rendering the opinions set forth herein, we have relied upon certificates of
      officers of the Mortgagor, certificates or telegrams of public officials and
      such other documents, records and information as we have deemed necessary or
      appropriate. We have assumed that all signatures are genuine; that all documents
      submitted to us as originals are authentic; that all documents submitted to
      us
      as copies conform to the originals; and that the facts stated in all such
      documents are true and correct. In rendering this opinion, we have not made
      any
      independent investigation as to accuracy or completeness of any facts or
      representations, warranties, data or other information, whether written or
      oral,
      that may have been made by or on behalf of the parties, except as specifically
      set forth herein.

    

    Based
      upon the foregoing, and subject to the qualifications set forth herein, it
      is
      our opinion that:

    

    1. The
      form
      of the Mortgage, including the form of acknowledgments thereto, [and the
      Financing Statement,] comply with the laws of the State of [___________],
      including all applicable recording, filing and registration laws and
      regulations, and are adequate and legally sufficient for the purposes intended
      to be accomplished thereby.

     

    
      
        
1
        Under Section 9.502 of UCC, a record of our form of mortgage is effective
        as a financing statement filed as a fixture filing or as a financing statement
        covering as-extracted collateral or timber to be cut. Some counties, however,
        maintain separate indexes for UCC filings, and in such case, a UCC-1 financing
        statement covering such collateral should be prepared and filed
        separately.

    

     

    
      
        
          Exhibit E-2-1

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2. The
      descriptions of those portions of the Mortgaged Property located within the
      State of [___________] which are shown on Exhibit “A” attached to the Mortgage
      are legally sufficient descriptions for the purpose of creating and maintaining
      the Liens purported to be created by the Mortgage and for the purposes of all
      applicable recording, filing and registration laws in the State of
      [___________]. 

    

    3. So
      far as
      the law of the State of [___________] is concerned, the Mortgage constitutes
      legal, valid and binding obligations of the Mortgagor enforceable against it
      in
      accordance with their terms except as limited by bankruptcy, insolvency,
      reorganization, moratorium or other similar laws of general application relating
      to or affecting creditors’ rights generally and to general principles of
      equity.

    

    4. The
      Mortgage is effective to create in favor of the Administrative Agent (or the
      Trustee named therein, as applicable) for the benefit of the Administrative
      Agent and the Lenders, for the payment of the obligations described therein,
      a
      valid mortgage Lien on all of the Mortgagor’s right, title and interest in and
      to the portion of the Mortgaged Property constituting real property described
      in
      the Mortgage as being mortgaged thereby and a valid security interest in all
      of
      the Mortgagor’s right, title and interest in and to as-extracted collateral
      located in the county in which the Mortgaged Property is situated and all
      fixtures located on the real property described in the Mortgage.

    

    5. Fully
      executed counterparts of the Mortgage and the Financing Statement should be
      filed for record in each county in the State of [___________] where any portion
      of the Mortgaged Property is located [or if other, please specify]. Other than
      the foregoing, no authorization, consent, approval, license or exemption of,
      or
      filing or registration with, any Governmental Authority of the State of
      [___________] is necessary for either the due execution and delivery by the
      Mortgagor of the Mortgage, the perfection of the Liens intended to be created
      thereby or with the holding and enforcement by the Administrative Agent of
      the
      Mortgage or the obligations secured thereby.

    

    6. After
      the
      recordings and filings specified in paragraph 5 have occurred, the Liens created
      by the Mortgage will be perfected.

    

    7. After
      the
      recordings and filings specified in paragraph 5 have occurred, no instruments
      need be recorded, registered or filed or re-recorded, re-registered or re-filed
      in any public office in the State of [___________] in connection with the
      execution and delivery of the Mortgage in order to maintain the perfection
      and
      priority of the Liens created thereby after the date of recordation, other
      than
      [state rule if necessary] and continuation statements as required by the Uniform
      Commercial Code as in effect in the State of [___________].

    

    8. No
      state
      or local recording tax, stamp tax or other similar fee, tax or governmental
      charge (other than statutory filing and recording fees to be paid upon the
      filing of the Mortgage [or the Financing Statement]) is required to be paid
      in
      connection with the filing and recording of [either] the Mortgage [or the
      Financing Statement][, except as follows: explain if necessary]. 

    

    9. The
      execution, delivery and performance by the Mortgagor of its obligations under
      the Mortgage will not result in a violation of any laws, rules and regulations
      of the State of [___________] which, in our experience, exercising customary
      professional diligence, are normally applicable to transactions of the type
      provided for in the Loan Documents. 

     

    
      
        
          Exhibit E-2-2

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    10. A
      [___________] state court of competent jurisdiction or a federal court sitting
      in the State of [___________] of competent jurisdiction and applying conflicts
      of laws principles of the State of [___________], if properly presented with
      a
      choice of law issue, will honor the choice of New York law to govern the Credit
      Agreement, the Notes and the Mortgage that state such documents shall be
      governed by the laws of the State of New York. 

    

    The
      foregoing opinions are subject to the following additional assumptions and
      qualifications:

    

    [add
      appropriate qualifications, if any].

    

    The
      opinions rendered herein are for the sole benefit of, and may only be relied
      upon by, the addressee and the Persons from time to time Lenders under the
      Credit Agreement, and the opinions herein expressed are not to be used,
      circulated or otherwise referred to in connection with any transaction other
      than those contemplated by the Loan Documents. This opinion is specifically
      limited to the presently effective laws of the State of [___________]. We have
      not been asked to, and we do not, render any opinion as to any matter except
      as
      specifically set forth herein.

    

    Very
      truly yours,

    

    
      
        
          Exhibit E-2-3

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F-1

    SECURITY
      INSTRUMENTS

     

    1) Guaranty
      and Collateral Agreement dated as of June 29, 2007 by the Parent Guarantor,
      the
      Borrower, and each other Guarantors in favor of the Administrative Agent and
      the
      Lenders.

     

    2) Financing
      Statements in respect of item 1.

     

    3) Stock
      Powers delivered in respect of item 1.

     

    a) AER
      Pipeline Construction, Inc. 

     

    4) Open-End
      Mortgage dated
      June 29, 2007 by Atlas Gas & Oil Company, LLC, a Michigan
      limited liability company, as Mortgagor (filed in various Michigan
      counties).

     

    5) Financing
      Statement in respect of item 4.

     

    6) Open-End
      Mortgage, Indenture, Security Agreement, Financing Statement, Fixture Filing
      and
      Assignment of Production dated June 29, 2007 from Resource Energy,
      LLC,
      a
      Delaware limited liability company, and Viking Resources, LLC,
      a
      Pennsylvania limited liability company, as Mortgagors (filed in various Ohio
      counties).

     

    7) Financing
      Statements in respect of item 6.

     

    8) Open-End
      Mortgage, Security Agreement, Financing Statement, Fixture Filing and Assignment
      of Production dated June 29, 2007 by Atlas
      Resources,
      LLC,
a
      Pennsylvania
      limited liability company, Atlas
      America,
      LLC,
      a
      Pennsylvania limited liability company, and Viking
      Resources,
      LLC,
      a
      Pennsylvania limited liability company, as Mortgagors (filed in various
      Pennsylvania counties).

     

    9) Financing
      Statements in respect of item 8.

     

    10) Open-End
      Mortgage, Indenture, Security Agreement, Financing Statement and Assignment
      of
      Production dated June 29, 2007 from Resource Energy,
      LLC,
      a
      Delaware limited liability company, REI-NY, LLC,
      a
      Delaware limited liability company, as Mortgagors (filed in Chautauqua County,
      New York).

     

    11) Financing
      Statements in respect of item 10.

     

    12) Fee
      Letter dated May 18, 2007 among the Parent Guarantor, the Administrative Agent
      and the Arranger.

     

    
      
        
          Exhibit F-1-1

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F-2

    FORM
      OF GUARANTY AND COLLATERAL AGREEMENT

     

    
      
        
          Exhibit F-2-1

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      G

    FORM
      OF ASSIGNMENT AND ASSUMPTION

     

    This
      Assignment and Assumption (the “Assignment
      and Assumption”)
      is
      dated as of the Effective Date set forth below and is entered into by and
      between [Insert
      name of Assignor]
      (the
“Assignor”)
      and
      [Insert
      name of Assignee]
      (the
“Assignee”).
      Capitalized terms used but not defined herein shall have the meanings given
      to
      them in the Credit Agreement identified below (as amended, the “Credit
      Agreement”),
      receipt of a copy of which is hereby acknowledged by the Assignee. The Standard
      Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed
      to
      and incorporated herein by reference and made a part of this Assignment and
      Assumption as if set forth herein in full.

     

    For
      an
      agreed consideration, the Assignor hereby irrevocably sells and assigns to
      the
      Assignee, and the Assignee hereby irrevocably purchases and assumes from the
      Assignor, subject to and in accordance with the Standard Terms and Conditions
      and the Credit Agreement, as of the Effective Date inserted by the
      Administrative Agent as contemplated below (i) all of the Assignor’s rights and
      obligations in its capacity as a Lender under the Credit Agreement and any
      other
      documents or instruments delivered pursuant thereto to the extent related to
      the
      amount and percentage interest identified below of all of such outstanding
      rights and obligations of the Assignor under the respective facilities
      identified below (including any letters of credit and guarantees included in
      such facilities) and (ii) to the extent permitted to be assigned under
      applicable law, all claims, suits, causes of action and any other right of
      the
      Assignor (in its capacity as a Lender) against any Person, whether known or
      unknown, arising under or in connection with the Credit Agreement, any other
      documents or instruments delivered pursuant thereto or the loan transactions
      governed thereby or in any way based on or related to any of the foregoing,
      including contract claims, tort claims, malpractice claims, statutory claims
      and
      all other claims at law or in equity related to the rights and obligations
      sold
      and assigned pursuant to clause (i) above (the rights and obligations sold
      and
      assigned pursuant to clauses (i) and (ii) above being referred to herein
      collectively as the “Assigned
      Interest”).
      Such
      sale and assignment is without recourse to the Assignor and, except as expressly
      provided in this Assignment and Assumption, without representation or warranty
      by the Assignor.

     

    
      
        	
                1.

              	
                Assignor:

              	 	
                ______________________________

              
	 	 	 	 
	
                2.

              	
                Assignee:

              	 	
                ______________________________

              
	 	
              	 	
                [and
                  is an Affiliate/Approved Fund of [identify
                  Lender]2]

              
	 	 	 	 
	
                3.

              	
                Borrower:

              	 	
                Atlas
                  Energy Operating Company, LLC

              
	 	 	 	 
	
                4.

              	
                Administrative
                  Agent:

              	 	
                JPMorgan
                  Chase Bank, N.A., as the administrative agent under the Credit
                  Agreement

              
	 	 	 	 
	
                5.

              	
                Credit
                  Agreement:

              	 	
                The
                  Credit Agreement dated as of June 29, 2007 among Atlas Energy Resources,
                  LLC, as parent guarantor, Atlas Energy Operating Company, LLC,
                  as
                  borrower, the Lenders parties thereto, JPMorgan Chase Bank, N.A.,
                  as
                  Administrative Agent, and the other agents parties
                  thereto

              
	 	 	 	 
	
                6.

              	
                Assigned
                  Interest:

              	 	 

      

    

     

    
      	
              Commitment
                Assigned

            	 	
              Aggregate
                Amount of Commitment/Loans for all Lenders

            	 	
              Amount
                of Commitment/Loans Assigned

            	 	
              Percentage
                Assigned of Commitment/Loans3 

            
	 	 	
              $

            	 	
              $

            	 	
              %

            
	 	 	
              $

            	 	
              $

            	 	
              %

            
	 	 	
              $

            	 	
              $

            	 	
              %

            

    

     

    
      
        

      

    

    2
      Select as applicable.

     

    
      3
        Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans
        of all Lenders thereunder.

       

    

    
      
        
          Exhibit G-1

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Effective
      Date: _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND
      WHICH
      SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
      THEREFOR.]

     

    The
      terms
      set forth in this Assignment and Assumption are hereby agreed to:

     

    
      	 	 	 
	 	
              ASSIGNOR

               

              
                [NAME
                  OF ASSIGNOR]

              

            
	 
 	 
 	 
 
	 	 By: 	 
	
            	Title:  	
              
                

              

            
	 	  	
            

    

    
       

      
        	 	 	 
	 	
                ASSIGNEE

                 

                
                  [NAME
                    OF ASSIGNEE]

                

              
	 
 	 
 	 
 
	
              	By:  	
              
	 	Title:    	
                

              

      

       

    

    The
      undersigned hereby consent to the within assignment:4 

     

    
      	 	
              ATLAS
                ENERGY OPERATING 

              COMPANY, LLC 

            	 	 	
              JPMORGAN
                CHASE BANK, N.A.,

              as Administrative Agent

            
	 	 	 	 	 
	 	
              By: Atlas Energy Resources, LLC,

              its sole member

            	 	 	 
	 	 	 	 	 
	By:	
            	 	By:
              	
            
	Name: 	
              

            	 	Name:	
              

            
	Title: 	 	 	Title:]	 

    

    

      
        
          

        

      

      4
        Consents to be included to the extent required by Section 12.04(b) of the
        Credit
        Agreement.

       

      
        
          
            Exhibit G-2

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    ANNEX
      1

     

    STANDARD
      TERMS AND CONDITIONS FOR

    ASSIGNMENT
      AND ASSUMPTION

    

    1.
      Representations
      and Warranties.
      

    

    1.1
      Assignor.
      The
      Assignor (a) represents and warrants that (i) it is the legal and beneficial
      owner of the Assigned Interest, (ii) the Assigned Interest is free and clear
      of
      any lien, encumbrance or other adverse claim and (iii) it has full power and
      authority, and has taken all action necessary, to execute and deliver this
      Assignment and Assumption and to consummate the transactions contemplated
      hereby; and (b) assumes no responsibility with respect to (i) any statements,
      warranties or representations made in or in connection with the Credit Agreement
      or any other Loan Document, (ii) the execution, legality, validity,
      enforceability, genuineness, sufficiency or value of the Loan Documents or
      any
      collateral thereunder, (iii) the financial condition of the Borrower, any of
      its
      Subsidiaries or Affiliates or any other Person obligated in respect of any
      Loan
      Document or (iv) the performance or observance by the Borrower, any of its
      Subsidiaries or Affiliates or any other Person of any of their respective
      obligations under any Loan Document.

    

    1.2.
      Assignee.
      The
      Assignee (a) represents and warrants that (i) it has full power and authority,
      and has taken all action necessary, to execute and deliver this Assignment
      and
      Assumption and to consummate the transactions contemplated hereby and to become
      a Lender under the Credit Agreement, (ii) it satisfies the requirements, if
      any,
      specified in the Credit Agreement that are required to be satisfied by it in
      order to acquire the Assigned Interest and become a Lender, (iii) from and
      after
      the Effective Date, it shall be bound by the provisions of the Credit Agreement
      as a Lender thereunder and, to the extent of the Assigned Interest, shall have
      the obligations of a Lender thereunder, (iv) it has received a copy of the
      Credit Agreement, together with copies of the most recent financial statements
      delivered pursuant to Section
      8.01
      thereof,
      as applicable, and such other documents and information as it has deemed
      appropriate to make its own credit analysis and decision to enter into this
      Assignment and Assumption and to purchase the Assigned Interest on the basis
      of
      which it has made such analysis and decision independently and without reliance
      on the Administrative Agent or any other Lender, and (v) if it is a Non-US
      Lender, attached to the Assignment and Assumption is any documentation required
      to be delivered by it pursuant to the terms of the Credit Agreement, duly
      completed and executed by the Assignee; and (b) agrees that (i) it will,
      independently and without reliance on the Administrative Agent, the Assignor
      or
      any other Lender, and based on such documents and information as it shall deem
      appropriate at the time, continue to make its own credit decisions in taking
      or
      not taking action under the Loan Documents, and (ii) it will perform in
      accordance with their terms all of the obligations which by the terms of the
      Loan Documents are required to be performed by it as a Lender.

    

    2.
      Payments.
      From
      and after the Effective Date, the Administrative Agent shall make all payments
      in respect of the Assigned Interest (including payments of principal, interest,
      fees and other amounts) to the Assignor for amounts which have accrued to but
      excluding the Effective Date and to the Assignee for amounts which have accrued
      from and after the Effective Date.

    

    3.
      General
      Provisions.
      This
      Assignment and Assumption shall be binding upon, and inure to the benefit of,
      the parties hereto and their respective successors and assigns. This Assignment
      and Assumption may be executed in any number of counterparts, which together
      shall constitute one instrument. Delivery
      of an executed counterpart of a signature page of this Assignment
      and
      Assumption
      by
      telecopy shall be effective as delivery of a manually executed counterpart
      of
      this Assignment
      and
      Assumption.
      This
      Assignment and Assumption shall be governed by, and construed in accordance
      with, the law of the State of New York.

    

    
      
        
          Exhibit G-3

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      H-1

     

    FORM
      OF MAXIMUM CREDIT AMOUNT INCREASE CERTIFICATE

     

    [___________],
      200[__]

     

    
      	To:	
              JPMorgan
                Chase Bank, N.A.,

              
                as
                  Administrative Agent

              

            

    

     

    The
      Parent Guarantor, the Borrower, the Administrative Agent and the other Agents
      and certain Lenders have heretofore entered into the Credit Agreement, dated
      as
      of June 29, 2007, as amended, restated, supplemented or otherwise modified
      from
      time to time (the “Credit
      Agreement”).
      Capitalized terms not otherwise defined herein shall have the meaning given
      to
      such terms in the Credit Agreement.

     

    This
      Maximum Credit Amount Increase Certificate is being delivered pursuant to
Section
      2.06(c)
      of the
      Credit Agreement.

     

    Please
      be
      advised that the undersigned has agreed to (a) increase its Maximum Credit
      Amount under the Credit Agreement effective [___________], 200[__] from
      $[___________] to $[___________] and (b) that it shall continue to be a party
      in
      all respect to the Credit Agreement and the other Loan Documents.

     

    The
      [Borrower/Lender] shall pay the fee payable to the Administrative Agent pursuant
      to Section
      2.06(c)(ii)
      of the
      Credit Agreement.

    
       

      
        
          	 	 	 
	
                  
                    PARENT
                      GUARANTOR:

                  

                	
                  Very truly yours,

                   

                  ATLAS ENERGY RESOURCES, LLC

                
	 
 	 
 	 
 
	
                	By:  	 
	 	Name:   	
                  

                
	 	Title:	 

        

        
          
            
              
                 

                
                  
                    	 	 	 
	
                            
                              BORROWER:

                            

                          	
                            ATLAS ENERGY OPERATING COMPANY,
                              LLC 

                             

                            By: Atlas Energy Resources, LLC,
                              its sole
                              member

                          
	 
 	 
 	 
 
	
                          	By:  	 
	 	Name:   	
                            

                          
	 	Title:	 

                  

                  
                     

                    
                      
                        
                          Exhibit H-1-1

                        

                      

                      
                        
                        

                        
                          

                        

                      

                      
                        
                        

                      

                    

                     

                  

                

              

            

          

        

      

    

    Accepted
      and Agreed:

    

    JPMORGAN
      CHASE BANK, N.A.,

    as
      Administrative Agent

    

    
      	By: 	 	 	 	 
	Name: 	
              
 	 	 	
            
	Title: 	
              
 	 	 	
            
	 	
              

            	 	 	 

    

    

    Accepted
      and Agreed:

    

    [    ]

    
      

      
        	By: 	 	 	 	 
	Name: 	
                
 	 	 	
              
	Title: 	
                
 	 	 	
              
	 	
                

              	 	 	 

      

       

      
        
          
            Exhibit H-1-2

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    EXHIBIT
      H-2

    FORM
      OF ADDITIONAL LENDER CERTIFICATE

    

    [___________],
      200[__]

     

    
       

      
        	To:	
                 JPMorgan
                  Chase Bank, N.A.,
                  as
                    Administrative Agent

                

              

      

       

    To:          

    The
      Parent Guarantor, the Borrower, the Administrative Agent and the other Agents
      and certain Lenders have heretofore entered into the Credit Agreement, dated
      as
      of June 29, 2007, as amended, restated, supplemented or otherwise modified
      from
      time to time (the “Credit
      Agreement”).
      Capitalized terms not otherwise defined herein shall have the meaning given
      to
      such terms in the Credit Agreement.

     

    This
      Additional Lender Certificate is being delivered pursuant to Section
      2.06(c)
      of the
      Credit Agreement.

     

    Please
      be
      advised that the undersigned has agreed (a) to become a Lender under the Credit
      Agreement effective [_________], 200[__] with a Maximum Credit Amount of
      $[_________] and (b) that it shall be a party in all respect to the Credit
      Agreement and the other Loan Documents.

     

    This
      Additional Lender Certificate is being delivered to the Administrative Agent
      together with (i) if the Additional Lender is a Non-US Lender, any documentation
      required to be delivered by such Additional Lender pursuant to Section 5.03(d)
      of the Credit Agreement, duly completed and executed by the Additional Lender,
      and (ii) an Administrative Questionnaire in the form supplied by the
      Administrative Agent, duly completed by the Additional Lender. The
      [Borrower/Additional Lender] shall pay the fee payable to the Administrative
      Agent pursuant to Section
      2.06(c)(ii)
      of the
      Credit Agreement.

    
       

      
        
          	 	 	 
	
                  
                    PARENT
                      GUARANTOR:

                  

                	
                  
                    Very
                      truly yours,

                     

                    ATLAS
                      ENERGY RESOURCES, LLC

                  

                
	
                	 
 	 
 
	______	By:  	 
	 	Name:   	
                  

                
	 	Title:	 

        

        
           

          
            
              
                Exhibit H-2-1

              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

    

    
      
         

        
          
            	 	 	 
	
                    
                      BORROWER: 

                    

                  	
                    
                      ATLAS
                        ENERGY OPERATING COMPANY, LLC 

                    

                  
	 	 
	 	By: Atlas Energy Resources, LLC,
                    its sole
                    member
	
                  	 
 	 
 
	______	By:  	 
	 	Name:   	
                    

                  
	 	Title:	 

          

           

        

      

    

    Accepted
      and Agreed:

    

    JPMORGAN
      CHASE BANK, N.A.,

    as
      Administrative Agent

    
      

      
        	By: 	 	 	 	 
	Name: 	
                
 	 	 	
              
	Title: 	
                
 	 	 	
              
	 	
                

              	 	 	 

      

       

    

    Accepted
      and Agreed:

    

    [       ]

    
      

      
        	By: 	 	 	 	 
	Name: 	
                
 	 	 	
              
	Title: 	
                
 	 	 	
              
	 	
                

              	 	 	 

      

          

      
        
          
            Exhibit H-2-2

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    EXHIBIT
      I

     

    FORM
      OF RESERVE REPORT CERTIFICATE

    [September]/[March]
      1, [year]

    

    This
      Reserve Report Certificate (“Certificate”)
      is
      executed and delivered pursuant to Section 8.12 (c) of that certain Credit
      Agreement dated as of June 29, 2007 among Atlas Energy Resources, LLC
      (“Parent
      Guarantor”),
      Atlas
      Energy Operating Company, LLC (“Borrower”),
      JPMorgan Chase Bank, N.A., as administrative agent (“Administrative
      Agent”)
      and
      the Lenders named therein and as may be amended, restated, supplemented or
      otherwise modified from time to time (the “Credit
      Agreement”).
      Unless otherwise defined herein, all capitalized terms shall have the meaning
      set forth in the Credit Agreement.

     

    The
      undersigned, a Responsible Officer of the Borrower, hereby certifies to the
      Administrative Agent and Lenders that in all material respects:

     

    (i)
      the
      information contained in the Reserve Report attached hereto as Attachment
      1
      to this
      Certificate (“Reserve
      Report”)
      and
      any other information delivered in connection therewith is true and correct;
      

     

    (ii)
      the
      Borrower or its Subsidiaries owns good and defensible title to the Oil and
      Gas
      Properties evaluated in the Reserve Report and such Properties are free of
      all
      Liens except for Liens permitted by Section 9.03 of the Credit Agreement;

     

    (iii)
      except as set forth in Attachment
      2
      to this
      Certificate, on a net basis there are no gas imbalances, take or pay or other
      prepayments in excess of the volume specified in Section 7.19 of the Credit
      Agreement with respect to its Oil and Gas Properties evaluated in the Reserve
      Report which would require the Borrower or any Subsidiary to deliver
      Hydrocarbons either generally or produced from such Oil and Gas Properties
      at
      some future time without then or thereafter receiving full payment therefor;
      

     

    (iv)
      except as listed in Attachment
      3
      to this
      Certificate, no Oil and Gas Properties have been sold since the date of the
      last
      Borrowing Base determination; 

     

    (v)
      attached hereto as Attachment
      4
      to this
      Certificate is a list of all marketing agreements entered into subsequent to
      the
      later of the date hereof or the most recently delivered Reserve Report which
      the
      Borrower could reasonably be expected to have been obligated to list on Schedule
      7.20 of the Credit Agreement had such agreement been in effect on the date
      hereof; and 

     

    (vi)
      attached hereto as Attachment
      5
      to this
      Certificate is a schedule of the Oil and Gas Properties evaluated by the Reserve
      Report that are Mortgaged Properties and showing the percentage of the Borrowing
      Base that the value of such Mortgaged Properties represent.

     

    
      
        
          Exhibit I-1

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEROF, I have hereunto signed this Certificate as of the ____ day
      of
      [Month],
      [Year].

     

    
      	 	 	 
	 	
              BORROWER:

            
	 	 
	Address for Notice:	ATLAS ENERGY OPERATING COMPANY,
              LLC
	 	 
	
              West
                Point Corporate Center I

              1550
                Coraopolis Heights Road

            	
              By:  Atlas Energy Resources, LLC,

              its
                sole member

            
	
              Moon
                Township, Pennsylvania 15108

              Attention: Matthew A. Jones

            	 
 	 
 
	Fax
              No.: 215.546.4785	By:  	 
	
              E-mail:mjones@atlasamerica.com

            	
              
Matthew
              A. Jones
	 	
              Chief
                Financial Officer

            

    

     

    
      
        
          Exhibit I-2

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      1

    RESERVE
      REPORT

     

    
      
        
          Exhibit I-3

        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    ATTACHMENT
      2

    GAS
      IMBALANCES, TAKE OR PAY, OR OTHER PREPAYMENTS

    

    
      
        
          Exhibit I-4

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      3

    OIL
      & GAS PROPERTIES SOLD

     

    
      
        
          Exhibit I-5

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      4

    MARKETING
      AGREEMENTS ENTERED INTO SUBSEQUENT TO [date]

    

    
      
        
          Exhibit I-6

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      5

    OIL
      & GAS PROPERTIES that are MORTGAGED PROPERTIES

    

    
      	
              Mortgaged
                Property Name

            	 	
              Percentage
                of the Borrowing Base that the value of Mortgaged Property
                represents

            
	 	 	 
	 	 	 

    

    

    
      
        
          Exhibit I-7Exhibit
      10(aa)

     

    VOTING
      AGREEMENT DATED AS OF JUNE 29, 2007 

    BETWEEN
      ATLAS AMERICA, INC. AND ATLAS ENERGY 

    MANAGEMENT,
      INC.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    VOTING
      AGREEMENT

     

    THIS
      VOTING AGREEMENT (this “Agreement”) dated as of June 29, 2007 is by and among
      Atlas America, Inc., a Delaware corporation (“Atlas America”), and Atlas Energy
      Management, Inc., a Delaware corporation (“Atlas Management”).

     

    WHEREAS,
      reference is made to the Class D Unit and Common Unit Purchase Agreement (the
      “Purchase Agreement”) relating to the proposed private placement to certain
      institutional investors of Class D Units and Common Units of Atlas Energy
      Resources, LLC (the “Company”); and

     

    WHEREAS,
      reference is made to the Purchase Agreement, whereby the Company will agree
      to
      take all action necessary to convene a meeting of its Unitholders to consider
      and vote upon, or obtain the consent of its Unitholders to, the conversion
      of
      the Purchasers’ Class D Units into Common Units (the “Conversion”) as soon as
      practicable, but in any event not later than 135 days following the Closing
      Date; and

     

    WHEREAS,
      each of Atlas America and Atlas Management are record holders of Units (“Voting
      Units”) representing limited liability company interests in the Company, and
      each of them desires to set forth certain agreements and arrangements related
      to
      the voting of such Voting Units in respect of the conversion of the Class D
      Units into Common Units.

     

    NOW,
      THEREFORE, in consideration of the premises and the covenants and agreements
      contained herein, and for other good and valuable consideration, the receipt
      and
      sufficiency of which are hereby acknowledged, and intending to be legally bound
      hereby, the parties hereby agree as follows:

     

    1. Effectiveness.
      The
      provisions of this Agreement shall be effective upon the date first written
      above.

     

    2. Definitions.
      Capitalized terms used herein without definition shall have the meanings given
      to them in the Purchase Agreement.

     

    3. Agreement
      to Vote.
      At any
      meeting of the Unitholders convened to consider and vote upon the Conversion
      or
      in connection with any solicitation of consents to the conversion, each of
      Atlas
      America and Atlas Management unconditionally and irrevocably agrees to vote
      all
      of the Units owned by such person on the record date fixed by the Company’s
      Board of Directors for any such meeting, or to give its consent in a consent
      solicitation, in favor of the conversion of the Class D Units into Common
      Units.

     

    4. Additional
      Covenants.
      As
      applicable, the parties shall cause their respective officers, employees and
      agents to take all requisite action requested by the Company or the Purchasers
      to carry out their obligations under this Agreement.

     

    5. Specific
      Enforcement.
      It is
      agreed and understood that monetary damages would not adequately compensate
      an
      injured party for the breach of this Agreement by any party, that this Agreement
      shall be specifically enforceable, and that any breach or threatened breach
      of
      this Agreement shall be the proper subject of a temporary or permanent
      injunction or restraining order without a requirement of posting bond. Further,
      each party hereto waives any claim or defense that there is an adequate remedy
      at law for such breach or threatened breach.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    6. Representations
      and Warranties.
      Each of
      Atlas America and Atlas Management hereby represents and warrants with respect
      to itself, on and as of the date of this Agreement, as follows:

     

    (a) It
      has
      full right, power and authority to vote the Voting Units, held of record by
      it,
      in the manner contemplated herein.

     

    (b) The
      Voting Units represent approximately 29,352,996 Common Units and 748,456 Class
      A
      Units.

     

    (c) It
      has
      all requisite power and authority to enter into and perform its obligations
      under this Agreement. The execution, delivery and performance of this Agreement
      have been duly authorized by all necessary action on the part of such party.
      This Agreement has been duly executed and delivered by such party. This
      Agreement constitutes its legal, valid and binding obligation, enforceable
      in
      accordance with its terms, except as such enforceability may be limited by
      bankruptcy, insolvency, fraudulent transfer and similar laws affecting
      creditors’ rights generally or by general principles of equity.

     

    (d) The
      execution, delivery and performance of this Agreement will not, with or without
      the giving of notice or the passage of time, (i) violate any judgment,
      injunction, order or decree of any court, arbitrator or governmental agency
      applicable to such party, or (ii) conflict with, result in the breach of any
      provision of, constitute a default under, or require the consent or approval
      of
      any third party under, any agreement or instrument to which such party is a
      party or by which such party is bound.

     

    7. Covenants.

     

    (a) Until
      the
      termination of this Agreement, such party will not enter into any transaction,
      take any action or by inaction permit any event to occur that would result
      in
      any of the representations or warranties of such party herein contained not
      being true and correct or that would prevent or otherwise restrict such party
      from performing its obligations under this Agreement. None of the parties to
      this Agreement shall be subject to any restrictions on transfer as a result
      of
      entering into this Agreement, except that in any transfer of all or any portion
      of any such party’s Voting Units such transferee shall agree in writing to be
      bound by the terms of this Agreement.

     

    (b) Such
      party shall execute and deliver any additional documents reasonably necessary
      or
      desirable to evidence the agreement to vote granted herein with respect to
      the
      Voting Units or otherwise implement and effect the provisions of this
      Agreement.

     

    8. Third
      Party Beneficiaries.
      Each of
      Atlas America and Atlas Management acknowledges that the beneficiaries of the
      terms of this Agreement are the Purchasers who purchase Class D Units pursuant
      to the Purchase Agreement. Each of Atlas America and Atlas Management
      acknowledges further and agrees that such Purchasers shall have the right to
      enforce this Agreement. Nothing in this Agreement shall be construed to impose
      any personal liability on any officer, employee, director, incorporator, member,
      manager, partner or stockholder of any party or any of its
      affiliates.

     

    9. Captions.
      The
      captions and headings used in this Agreement are for convenience only and do
      not
      in any way limit or amplify the terms and provisions hereof.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    10. Manner
      of Voting.
      The
      voting of the Voting Units owned by Atlas America and Atlas Management may
      be
      effected in person, by proxy, by written consent, or in any other manner
      permitted by applicable law.

     

    11. Splits,
      Dividends, Etc.
      If
      there shall be any issuance of voting securities hereafter to any of the parties
      hereto (including in connection with any split, dividend, recapitalization,
      reorganization, or the like), such securities shall become subject to this
      Agreement.

     

    12. Amendments.
      This
      Agreement may not be modified or amended without: (i) the written consent of
      the
      Purchasers entitled to purchase a majority of the Purchased Units and the
      Purchased Class D Units based on the Common Unit Price and the Class D Unit
      Purchase Price, as the case may be and (ii) an instrument or instruments in
      writing signed by each of Atlas America and Atlas Management.

     

    13. Notices.
      All
      notices or other communications under this Agreement shall be in writing and
      shall be given (and shall be deemed to have been duly given upon receipt) by
      delivery in person, by telecopy (with confirmation of receipt), or by registered
      or certified mail, postage prepaid, return receipt requested, addressed to
      the
      notice address specified on the applicable signature page to this
      Agreement.

     

    14. Entire
      Agreement.
      This
      Agreement is intended to be the sole agreement of the parties as it relates
      to
      this subject matter.

     

    15. Severability.
      If any
      provision of this Agreement shall be held invalid, illegal or unenforceable,
      the
      validity, legality or enforceability of the other provisions of this Agreement
      shall not be affected thereby, and there shall be deemed substituted for the
      provision at issue a valid, legal and enforceable provision as similar as
      possible to the provision at issue.

     

    16. Governing
      Law.
      This
      Agreement shall be governed by and construed under the laws of the State of
      New
      York, without reference to the principles of conflicts of law.

     

    17. Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original, but all of which together shall constitute one and the same
      instrument.

     

    18. No
      Partnership, Agency or Joint Venture.
      This
      Agreement is intended to create, and creates, a contractual relationship and
      is
      not intended to create, and does not create, any agency, partnership, joint
      venture or any like relationship among the parties hereto.

     

    19. Termination.
      This
      Agreement shall (i) terminate automatically following the satisfaction by the
      Company of its obligations under Section 5.03 of the Purchase Agreement and
      (ii)
      shall be deemed satisfied in full and terminated upon the consummation of the
      Conversion. In the event of termination of this Agreement pursuant to this
      Section 19, this Agreement shall become void and of no effect with no liability
      on the part of any party hereto; provided, however, no such termination shall
      relieve any party hereto from any liability for any breach of this Agreement
      occurring prior to such termination.

     

    [Remainder
      of page intentionally left blank]

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Voting Agreement as of the
      day
      and year hereinabove first written.

     

    
      	 	 	 
	 	ATLAS AMERICA, INC.
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
Name:
              Matthew A. Jones
	 	Title:
              Chief Financial Officer

    

    
       

      
        	 	 	 
	 	ATLAS ENERGY MANAGEMENT, INC.
	 
 	 
 	 
 
	
              	By:  	
              
	 	
                
Name:
                Matthew A. Jones
	 	Title:
                Chief Financial Officer

      

       

      
        
           

        

        
          5

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