Document:

exv10w1

Exhibit 10.1

$200,000,000

ATLAS ENERGY OPERATING COMPANY, LLC

ATLAS ENERGY FINANCE CORP.

12.125% Senior Notes due 2017

Underwriting Agreement

July 13, 2009

Each of the Underwriters listed in

in Schedule 1 hereto with

J.P. Morgan Securities Inc.

As Representative of the

   several Underwriters listed

   in Schedule 1 hereto

c/o J.P. Morgan Securities Inc.

270 Park Avenue

New York, New York 10017

Ladies and Gentlemen:

     Atlas Energy Operating Company, LLC, a Delaware limited liability company (the “Company”), and
Atlas Energy Finance Corp., a Delaware corporation (“Finance Corp.” and, together with the Company,
the “Issuers”), propose to issue and sell to the several underwriters listed in Schedule 1 hereto
(the “Underwriters”), for whom you are acting as representative (the “Representative”),
$200,000,000 principal amount of their 12.125% Senior Notes due 2017 (the “Securities”). The
Securities will be issued pursuant to an Indenture dated as of July 16, 2009, as supplemented and
amended by a supplemental indenture to be dated July 16, 2009 (as so supplemented and amended, the
“Indenture”) among the Issuers, Atlas Energy Resources, LLC, the parent of the Company (“Holdings”)
and the other guarantors listed in Schedule 2 hereto (together with Holdings, the “Guarantors”) and
U.S. Bank National Association, as trustee (the “Trustee”), and will be guaranteed on an unsecured
senior basis by each of the Guarantors (the “Guarantees”).

     The Issuers and the Guarantors hereby confirm their agreement with the several Underwriters
concerning the purchase and sale of the Securities, as follows:

     1. Registration Statement. The Issuers and the Guarantors have prepared and filed
with the Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as
amended, and the rules and regulations of the Commission thereunder (collectively, the

 

 

“Securities Act”), a registration statement on Form S-3 (File No. 333-160483), including a
prospectus, relating to the Securities. Such registration statement, as amended at the time it
became effective, including the information, if any, deemed pursuant to Rule 430A, 430B or 430C
under the Securities Act to be part of the registration statement at the time of its effectiveness
(“Rule 430 Information”), is referred to herein as the “Registration Statement”; and as used
herein, the term “Preliminary Prospectus” means each prospectus included in such registration
statement (as so amended) before it became effective, any prospectus filed with the Commission
pursuant to Rule 424(a) under the Securities Act and the prospectus included in the Registration
Statement at the time of its effectiveness that omits Rule 430 Information, and the term
“Prospectus” means the prospectus in the form first used (or made available upon request of
purchasers pursuant to Rule 173 under the Securities Act) in connection with confirmation of sales
of the Securities. If the Issuers have filed an abbreviated registration statement pursuant to
Rule 462(b) under the Securities Act (the “Rule 462 Registration Statement”), then any reference
herein to the term “Registration Statement” shall be deemed to include such Rule 462 Registration
Statement. Any reference in this Agreement to the Registration Statement, any Preliminary
Prospectus or the Prospectus shall be deemed to refer to and include the documents incorporated by
reference therein pursuant to Item 12 of Form S-3 under the Securities Act, as of the effective
date of the Registration Statement or the date of such Preliminary Prospectus or the Prospectus, as
the case may be and any reference to “amend”, “amendment” or “supplement” with respect to the
Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer to
and include any documents filed after such date under the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission thereunder (collectively, the “Exchange
Act”) that are deemed to be incorporated by reference therein. Capitalized terms used but not
defined herein shall have the meanings given to such terms in the Registration Statement and the
Prospectus.

     At or prior to the time when sales of the Securities were first made (the “Time of Sale”), the
following information shall have been prepared (collectively, the “Time of Sale Information”): a
Preliminary Prospectus dated July 13, 2009, and each “free-writing prospectus” (as defined pursuant
to Rule 405 under the Securities Act) listed on Annex B hereto.

     2. Purchase of the Securities by the Underwriters.

     (a) The Issuers agree to issue and sell the Securities to the several Underwriters as provided
in this Agreement, and each Underwriter, on the basis of the representations, warranties and
agreements set forth herein and subject to the conditions set forth herein, agrees, severally and
not jointly, to purchase from the Issuers the respective principal amount of Securities set forth
opposite such Underwriter’s name in Schedule 1 hereto at a price equal to (x) 95.866% of the
principal amount thereof plus (y) the accrued and unpaid interest, if any, from July 16, 2009 to
the Closing Date (as defined below). The Issuers will not be obligated to deliver any of the
Securities except upon payment for all the Securities to be purchased as provided herein. The
public offering price is not in excess of the price recommended by Citigroup Global Markets Inc.
acting in its capacity as a “qualified independent underwriter” within the meaning of Rule 2720
(“Rule 2720”) of the Conduct Rules of the Financial Industry Regulatory Authority (the
“FINRA”).

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     (b) The Issuers understand that the Underwriters intend to make a public offering of the
Securities as soon after the effectiveness of this Agreement as in the judgment of the
Representative is advisable, and initially to offer the Securities on the terms set forth in the
Prospectus. The Issuers acknowledge and agree that the Underwriters may offer and sell Securities
to or through any affiliate of an Underwriter and that any such affiliate may offer and sell
Securities purchased by it to or through any Underwriter.

     (c) Payment for and delivery of the Securities will be made at the offices of Cahill Gordon &
Reindel llp at 10:00 A.M., New York City time, on July 16, 2009, or at such other time or
place on the same or such other date, not later than the fifth business day thereafter, as the
Representative and the Issuers may agree upon in writing. The time and date of such payment and
delivery is referred to herein as the “Closing Date”.

     (d) Payment for the Securities shall be made by wire transfer in immediately available funds
to the account(s) specified by the Issuers to the Representative against delivery to the nominee of
The Depository Trust Company, for the account of the Underwriters, of one or more global notes
representing the Securities (collectively, the “Global Note”), with any transfer taxes payable in
connection with the sale of the Securities duly paid by the Issuers. The Global Note will be made
available for inspection by the Representative not later than 1:00 P.M., New York City time, on the
business day prior to the Closing Date.

     (e) The Issuers and the Guarantors acknowledge and agree that the Underwriters are acting
solely in the capacity of arm’s length contractual counterparties to the Issuers and the Guarantors
with respect to the offering of Securities contemplated hereby (including in connection with
determining the terms of the offering) and not as financial advisors or fiduciaries to, or agents
of, the Issuers, the Guarantors or any other person. Additionally, neither the Representative nor
any other Underwriter is advising the Issuers, the Guarantors or any other person as to any legal,
tax, investment, accounting or regulatory matters in any jurisdiction. The Issuers and the
Guarantors shall consult with their own advisors concerning such matters and shall be responsible
for making their own independent investigation and appraisal of the transactions contemplated
hereby, and the Underwriters shall have no responsibility or liability to the Issuers or the
Guarantors with respect thereto. Any review by the Underwriters of the Issuers, the Guarantors, the
transactions contemplated hereby or other matters relating to such transactions will be performed
solely for the benefit of the Underwriters and shall not be on behalf of the Issuers or the
Guarantors.

     3. Representations and Warranties of the Issuers and the Guarantors. The Issuers and
the Guarantors jointly and severally represent and warrant to each Underwriter that:

     (a) Preliminary Prospectus. No order preventing or suspending the use of any
Preliminary Prospectus has been issued by the Commission, and each Preliminary Prospectus,
at the time of filing thereof, complied in all material respects with the Securities Act and
did not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided that
the Issuers and the Guarantors make no representation and warranty with respect to any
statements or omissions made in reliance upon and in conformity with

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information relating to any Underwriter furnished to the Issuers in writing by such
Underwriter through the Representative expressly for use in any Preliminary Prospectus.

     (b) Time of Sale Information. The Time of Sale Information, at the Time of Sale did
not, and at the Closing Date will not, contain any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided that
the Issuers make no representation and warranty with respect to any statements or omissions
made in reliance upon and in conformity with information relating to any Underwriter
furnished to the Issuers in writing by such Underwriter through the Representative expressly
for use in such Time of Sale Information.

     (c) Issuer Free Writing Prospectus. The Issuers (including their agents and
representatives, other than the Underwriters in their capacity as such) have not prepared,
made, used, authorized, approved or referred to and will not prepare, make, use, authorize,
approve or refer to any “written communication” (as defined in Rule 405 under the Securities
Act) that constitutes an offer to sell or solicitation of an offer to buy the Securities
(each such communication by the Issuers or their agents and representatives (other than a
communication referred to in clauses (i), (ii) and (iii) below) an “Issuer Free Writing
Prospectus”) other than (i) any document not constituting a prospectus pursuant to Section
2(a)(10)(a) of the Securities Act or Rule 134 under the Securities Act, (ii) the Preliminary
Prospectus, (iii) the Prospectus, (iv) the documents listed on Annex B hereto, which
constitute part of the Time of Sale Information and (v) any electronic road show or other
written communications, in each case approved in writing in advance by the Representative.
Each such Issuer Free Writing Prospectus complied in all material respects with the
Securities Act, has been or will be (within the time period specified in Rule 433) filed in
accordance with the Securities Act (to the extent required thereby) and, when taken together
with the Preliminary Prospectus, filed prior to the first use of, such Issuer Free Writing
Prospectus, did not, and at the Closing Date will not, contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading;
provided that the Issuers make no representation and warranty with respect to any
statements or omissions made in each such Issuer Free Writing Prospectus in reliance upon
and in conformity with information relating to any Underwriter furnished to the Issuers in
writing by such Underwriter through the Representative expressly for use in any Issuer Free
Writing Prospectus.

     (d) Registration Statement and Prospectus. The Registration Statement is an “automatic
shelf registration statement” as defined under Rule 405 of the Securities Act that has been
filed with the Commission not earlier than three years prior to the date hereof; and no
notice of objection of the Commission to the use of such registration statement or any
post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act has
been received by the Company. No order suspending the effectiveness of the Registration
Statement has been issued by the Commission and no proceeding for that purpose or pursuant
to Section 8A of the Securities Act against the Issuers or related to the offering has been
initiated or threatened by the Commission; as of the applicable effective date of the
Registration Statement and any amendment thereto, the Registration

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Statement complied and will comply in all material respects with the Securities Act and
the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission
thereunder (collectively, the “Trust Indenture Act”), and did not and will not contain any
untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein not misleading; and as of the
date of the Prospectus and any amendment or supplement thereto and as of the Closing Date,
the Prospectus will not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading;
provided that the Issuers and the Guarantors make no representation and warranty
with respect to (i) that part of the Registration Statement that constitutes the Statement
of Eligibility and Qualification (Form T-1) of the Trustee under the Trust Indenture Act or
(ii) any statements or omissions made in reliance upon and in conformity with information
relating to any Underwriter furnished to the Issuers in writing by such Underwriter through
the Representative expressly for use in the Registration Statement and the Prospectus and
any amendment or supplement thereto.

     (e) Incorporated Documents. The documents incorporated by reference in the
Registration Statement, the Prospectus and the Time of Sale Information, when they were
filed with the Commission conformed in all material respects to the requirements of the
Securities Exchange Act of 1934, as amended, and the rules and regulation of the Commission
thereunder (collectively, the “Exchange Act”) and none of such documents contained any
untrue statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; and any further documents so filed
and incorporated by reference in the Registration Statement, the Prospectus or the Time of
Sale Information, when such documents are filed with the Commission will conform in all
material respects to the requirements of the Securities Act or the Exchange Act, as
applicable, and will not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading.

     (f) Financial Statements. The financial statements and the related notes thereto
included or incorporated by reference in the Registration Statement, the Time of Sale
Information and the Prospectus comply in all material respects with the applicable
requirements of the Securities Act and the Exchange Act, as applicable, and present fairly
the financial position of Holdings and its subsidiaries as of the dates indicated and the
results of their operations and the changes in their cash flows for the periods specified;
such financial statements have been prepared in conformity with generally accepted
accounting principles applied on a consistent basis throughout the periods covered thereby,
and the supporting schedules included or incorporated by reference in the Registration
Statement present fairly the information required to be stated therein; and the other
financial information included or incorporated by reference in the Registration Statement,
the Time of Sale Information and the Prospectus has been derived from the accounting records
of Holdings and its subsidiaries and presents fairly the information shown thereby; and the
pro forma financial information and the related notes thereto

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included or incorporated by reference in the Registration Statement, the Time of Sale
Information and the Prospectus have been prepared in accordance with the applicable
requirements of the Securities Act and the Exchange Act, as applicable, and the assumptions
underlying such pro forma financial information are reasonable and are set
forth in the Registration Statement, the Time of Sale Information and the Prospectus.

     (g) No Material Adverse Change. Since the date of the most recent financial statements
of Holdings included or incorporated by reference in the Registration Statement, the Time of
Sale Information and the Prospectus, (i) there has not been any change in the capital stock
or long-term debt of Holdings or any of its subsidiaries, or any dividend or distribution of
any kind declared, set aside for payment, paid or made by Holdings on any class of capital
stock, or any material adverse change, or any development which has or could reasonably be
expected to have a Material Adverse Effect (as defined below); (ii) neither Holdings nor any
of its subsidiaries has entered into any transaction or agreement that is material to
Holdings and its subsidiaries taken as a whole or incurred any liability or obligation,
direct or contingent, that is material to Holdings and its subsidiaries taken as a whole;
and (iii) neither Holdings nor any of its subsidiaries has sustained any material loss or
interference with its business from fire, explosion, flood or other calamity, whether or not
covered by insurance, or from any labor disturbance or dispute or any action, order or
decree of any court or arbitrator or governmental or regulatory authority, except in each
case as otherwise disclosed in the Registration Statement, the Time of Sale Information and
the Prospectus.

     (h) Organization and Good Standing. Holdings and each of its subsidiaries have been
duly organized and are validly existing and in good standing under the laws of their
respective jurisdictions of organization, are duly qualified to do business and are in good
standing in each jurisdiction in which their respective ownership or lease of property or
the conduct of their respective businesses requires such qualification, and have all power
and authority necessary to own or lease their respective properties and to conduct the
businesses in which they are engaged, except where the failure to be so qualified, in good
standing or have such power or authority would not, individually or in the aggregate, have a
material adverse effect on the business, properties, management, financial position, results
of operations or prospects of Holdings and its subsidiaries taken as a whole or on the
performance by the Issuers and the Guarantors of their obligations under the Securities and
the Guarantees (a “Material Adverse Effect”). Holdings does not own or control, directly or
indirectly, any corporation, association or other entity other than the subsidiaries listed
in Schedule 3 to this Agreement.

     (i) Capitalization. Holdings has the capitalization as set forth in each of the
Registration Statement, Time of Sale Information and the Prospectus under the heading
“Capitalization”; all the outstanding shares of capital stock or other equity interests or
other interests (including limited liability company interests) of each subsidiary of
Holdings have been duly and validly authorized and issued, are fully paid and non-assessable
and are owned directly or indirectly by Holdings, free and clear of any lien, charge,
encumbrance, security interest, restriction on voting or transfer or any other claim of any
third party other than liens in favor of JPMorgan Chase Bank, N.A., as collateral agent for
the benefit of the secured parties under the Company’s senior secured credit

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agreement dated as of June 29, 2007, as amended, and related security documents (the
“Credit Documents”), and all capital contributions required in respect of such limited
liability company interests have been paid in full. Finance Corp. has no assets,
operations, revenues or cash flows other than those related to the issuance, administration
and repayment of the Securities. Its only assets are its nominal capitalization of $1.00.

     (j) Due Authorization. Each of the Issuers and each of the Guarantors have full right,
power and authority to execute and deliver this Agreement, the Securities, the Guarantees
and the Indenture (collectively, the “Transaction Documents”) and to perform their
respective obligations hereunder and thereunder and under the Indenture; and all action
required to be taken for the due and proper authorization, execution and delivery of each of
the Transaction Documents and the consummation of the transactions contemplated thereby has
been duly and validly taken.

     (k) The Indenture. The Indenture has been duly authorized by the Issuers and the
Guarantors and upon effectiveness of the Registration Statement was duly qualified under the
Trust Indenture Act and, when duly executed and delivered in accordance with its terms by
each of the parties thereto, will constitute a valid and legally binding obligation of each
Issuer and each Guarantor enforceable against each Issuer and each Guarantor in accordance
with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally or by equitable principles relating to enforceability regardless
of whether considered in a proceeding in equity or at law (collectively, the “Enforceability
Exceptions”).

     (l) The Securities and the Guarantees. The Securities have been duly authorized by
each of the Issuers and, when duly executed, authenticated, issued and delivered as provided
in the Indenture and paid for as provided herein, will be duly and validly issued and
outstanding and will constitute valid and legally binding obligations of each of the Issuers
enforceable against each of the Issuers in accordance with their terms, subject to the
Enforceability Exceptions, and will be entitled to the benefits of the Indenture; and the
Guarantees have been duly authorized by each of the Guarantors and, when the Securities have
been duly executed, authenticated, issued and delivered as provided in the Indenture and
paid for as provided herein, will be valid and legally binding obligations of each of the
Guarantors, enforceable against each of the Guarantors in accordance with their terms,
subject to the Enforceability Exceptions, and will be entitled to the benefits of the
Indenture.

     (m) Underwriting Agreement. This Agreement has been duly authorized, executed and
delivered by each of the Issuers and each of the Guarantors.

     (n) Descriptions of the Transaction Documents. Each Transaction Document conforms in
all material respects to the description thereof contained in the Registration Statement,
the Time of Sale Information and the Prospectus.

     (o) No Violation or Default. Neither Holdings nor any of its subsidiaries is (i) in
violation of its charter or by-laws or similar organizational documents; (ii) in

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default, and no event has occurred that, with notice or lapse of time or both, would
constitute such a default, in the due performance or observance of any term, covenant or
condition contained in any indenture, mortgage, deed of trust, loan agreement or other
agreement or instrument to which Holdings or any of its subsidiaries is a party or by which
Holdings or any of its subsidiaries is bound or to which any of the property or assets of
Holdings or any of its subsidiaries is subject; or (iii) in violation of any law or statute
or any judgment, order, rule or regulation of any court or arbitrator or governmental or
regulatory authority, except, in the case of clauses (ii) and (iii) above, for any such
default or violation that would not, individually or in the aggregate, have a Material
Adverse Effect.

     (p) No Conflicts. The execution, delivery and performance by each of the Issuers and
each of the Guarantors of the Indenture and each of the Transaction Documents to which each
is a party, the issuance and sale of the Securities (including the Guarantees) and
compliance by each of the Issuers and each of the Guarantors with the terms thereof and the
consummation of the transactions contemplated by the Indenture and the Transaction Documents
will not (i) conflict with or result in a breach or violation of any of the terms or
provisions of, or constitute a default under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of Holdings or any of its
subsidiaries pursuant to, any indenture, mortgage, deed of trust, loan agreement or other
agreement or instrument to which Holdings or any of its subsidiaries is a party or by which
Holdings or any of its subsidiaries is bound or to which any of the property or assets of
Holdings or any of its subsidiaries is subject, (ii) result in any violation of the
provisions of the charter or by-laws or similar organizational documents of Holdings or any
of its subsidiaries or (iii) result in the violation of any law or statute or any judgment,
order, rule or regulation of any court or arbitrator or governmental or regulatory
authority, except, in the case of clauses (i) and (iii) above, for any such conflict,
breach, violation or default that would not, individually or in the aggregate, have a
Material Adverse Effect.

     (q) No Consents Required. No consent, approval, authorization, order, registration or
qualification of or with any court or arbitrator or governmental or regulatory authority is
required for the performance by the Issuers and Guarantors of the Indenture and the
execution, delivery and performance by each of the Issuers and each of the Guarantors of
each of the Transaction Documents to which each is a party, the issuance and sale of the
Securities (including the Guarantees) and compliance by each of the Issuers and each of the
Guarantors with the terms thereof and the consummation of the transactions contemplated by
the Transaction Documents and the Indenture, except for the registration of the Securities
under the Securities Act, the qualification of the Indenture under the Trust Indenture Act
and such consents, approvals, authorizations, orders and registrations or qualifications as
may be required under applicable state securities laws in connection with the purchase and
distribution of the Securities by the Underwriters.

     (r) Legal Proceedings. Except as described in the Registration Statement, the Time of
Sale Information and the Prospectus, there are no legal, governmental or regulatory
investigations, actions, suits or proceedings pending to which Holdings or any

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of its subsidiaries is or may be a party or to which any property of Holdings or any of
its subsidiaries is or may be the subject that, individually or in the aggregate, if
determined adversely to Holdings or any of its subsidiaries, could reasonably be expected to
have a Material Adverse Effect; and no such investigations, actions, suits or proceedings
are, to the best knowledge of any of the Issuers and each of the Guarantors, threatened or
contemplated by any governmental or regulatory authority or by others.

     (s) Independent Accountants. Grant Thornton LLP, who have audited certain financial
statements of Holdings and its subsidiaries, and DTE Gas & Oil Company and its subsidiaries,
are independent public accountants with respect to Holdings and its subsidiaries, and DTE
Gas & Oil Company and its subsidiaries, within the applicable rules and regulations adopted
by the Commission and the Public Company Accounting Oversight Board (United States) and as
required by the Securities Act.

     (t) Title to Real and Personal Property. Except as described in each of the
Registration Statement, the Time of Sale Information and the Prospectus, Holdings and its
subsidiaries have good and marketable title in fee simple to, or have valid rights to lease
or otherwise use, all items of real and personal property that are material to the
respective businesses of Holdings and its subsidiaries, in each case free and clear of all
liens, encumbrances, claims and defects and imperfections of title except those (i) that do
not materially interfere with the use made and proposed to be made of such property by
Holdings and its subsidiaries, (ii) pursuant to the Credit Documents or (iii) that could not
reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

     (u) Title to Intellectual Property. Holdings and its subsidiaries own or possess
adequate rights to use all material patents, patent applications, trademarks, service marks,
trade names, trademark registrations, service mark registrations, copyrights, licenses and
know-how (including trade secrets and other unpatented and/or unpatentable proprietary or
confidential information, systems or procedures) necessary for the conduct of their
respective businesses; and the conduct of their respective businesses will not conflict in
any material respect with any such rights of others, and Holdings and its subsidiaries have
not received any notice of any claim of infringement of or conflict with any such rights of
others.

     (v) No Undisclosed Relationships. No relationship, direct or indirect, exists between
or among Holdings or any of its subsidiaries, on the one hand, and the directors, officers,
stockholders or other affiliates of Holdings or any of its subsidiaries, on the other, that
would be required by the Securities Act to be described in the Registration Statement and
the Prospectus and that is not so described in such documents and in the Time of Sale
Information.

     (w) Investment Company Act. Neither Holdings nor any of its subsidiaries is and, after
giving effect to the offering and sale of the Securities and the application of the proceeds
thereof as described in the Registration Statement, the Time of Sale Information and the
Prospectus, will be an “investment company” or an entity “controlled” by an “investment
company” within the meaning of the Investment Company Act of 1940, as

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amended, and the rules and regulations of the Commission thereunder (collectively, the
“Investment Company Act”).

     (x) Taxes. Holdings and its subsidiaries have paid all federal, state, local and
foreign taxes and filed all tax returns required to be paid or filed through the date
hereof; and except as otherwise disclosed in the Registration Statement, the Time of Sale
Information and the Prospectus, there is no tax deficiency that has been, or could
reasonably be expected to be, asserted against Holdings or any of its subsidiaries or any of
their respective properties or assets.

     (y) Licenses and Permits. Holdings and its subsidiaries possess all licenses,
certificates, permits and other authorizations issued by, and have made all declarations and
filings with, the appropriate federal, state, local or foreign governmental or regulatory
authorities that are necessary for the ownership or lease of their respective properties or
the conduct of their respective businesses as described in the Registration Statement, the
Time of Sale Information and the Prospectus, except where the failure to possess or make the
same would not, individually or in the aggregate, have a Material Adverse Effect; and except
as described in the Registration Statement, the Time of Sale Information and the Prospectus,
neither Holdings nor any of its subsidiaries has received notice of any revocation or
modification of any such license, certificate, permit or authorization or has any reason to
believe that any such license, certificate, permit or authorization will not be renewed in
the ordinary course, except where such revocation, modification or non-renewal would not
have a Material Adverse Effect.

     (z) No Labor Disputes. Neither Holdings nor any of its subsidiaries has any employees
and, to the best knowledge of the Issuers and each of the Guarantors, no labor disturbance
by or dispute with employees of Atlas Energy Management, Inc. exists or, is contemplated or
threatened and neither Issuer nor any Guarantor is aware of any existing or imminent labor
disturbance by, or dispute with, the employees of Atlas Energy Management, Inc., Holdings or
any of Holdings’ subsidiaries’ principal suppliers, contractors or customers, except as
would not have a Material Adverse Effect.

     (aa) Compliance With Environmental Laws. (i) Holdings and its subsidiaries (x) are,
and at all prior times were, in compliance with any and all applicable federal, state, local
and foreign laws, rules, regulations, requirements, decisions and orders relating to the
protection of human health or safety, the environment, natural resources, hazardous or toxic
substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”), (y)
have received and are in compliance with all permits, licenses, certificates or other
authorizations or approvals required of them under applicable Environmental Laws to conduct
their respective businesses, and (z) have not received notice of any actual or potential
liability under or relating to any Environmental Laws, including for the investigation or
remediation of any disposal or release of hazardous or toxic substances or wastes,
pollutants or contaminants, and have no knowledge of any event or condition that would
reasonably be expected to result in any such notice, and (ii) there are no costs or
liabilities associated with Environmental Laws of or relating to Holdings or its
subsidiaries, except in the case of each of (i) and (ii) above, for any such failure to
comply, or failure to receive required permits, licenses or

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approvals, or cost or liability, as would not, individually or in the aggregate, have a
Material Adverse Effect; and (iii) except as described in each of the Registration
Statement, the Time of Sale Information and the Prospectus, (x) there are no proceedings
that are pending, or that are known to be contemplated, against Holdings or any of its
subsidiaries under any Environmental Laws in which a governmental entity is also a party,
other than such proceedings regarding which it is reasonably believed no monetary sanctions
of $100,000 or more will be imposed, (y) Holdings and its subsidiaries are not aware of any
issues regarding compliance with Environmental Laws, or liabilities or other obligations
under Environmental Laws or concerning hazardous or toxic substances or wastes, pollutants
or contaminants, that could reasonably be expected to have a Material Adverse Effect and (z)
none of Holdings and its subsidiaries anticipates material capital expenditures relating to
any Environmental Laws.

     (bb) Compliance With ERISA. (i) Each employee benefit plan, within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
for which Holdings or any member of its “Controlled Group” (defined as any organization
which is a member of a controlled group of corporations within the meaning of Section 414 of
the Internal Revenue Code of 1986, as amended (the “Code”)) would have any liability (each,
a “Plan”) has been maintained in compliance in all material respects with its terms and the
requirements of any applicable statutes, orders, rules and regulations, including but not
limited to ERISA and the Code; (ii) no prohibited transaction, within the meaning of
Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any Plan
excluding transactions effected pursuant to a statutory or administrative exemption; (iii)
for each Plan that is subject to the funding rules of Section 412 of the Code or Section 302
of ERISA, no “accumulated funding deficiency” as defined in Section 412 of the Code, whether
or not waived, has occurred or is reasonably expected to occur; (iv) the fair market value
of the assets of each Plan exceeds the present value of all benefits accrued under such Plan
(determined based on those assumptions used to fund such Plan); (v) no “reportable event”
(within the meaning of Section 4043(c) of ERISA) has occurred or is reasonably expected to
occur; and (vi) neither Holdings nor any member of the Controlled Group has incurred, nor
reasonably expects to incur, any liability under Title IV of ERISA (other than contributions
to the Plan or premiums to the PBGC, in the ordinary course and without default) in respect
of a Plan (including a “multiemployer plan”, within the meaning of Section 4001(a)(3) of
ERISA).

     (cc) Disclosure Controls. Holdings and its subsidiaries maintain a system of
“disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Exchange Act)
sufficient to provide reasonable assurance that information required to be disclosed by
Holdings in reports that it files or submits under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the Commission’s rules and
forms, including controls and procedures designed to ensure that such information is
accumulated and communicated to Holdings’ management as appropriate to allow timely
decisions regarding required disclosure. Holdings and its subsidiaries have carried out
evaluations of the effectiveness of their disclosure controls and procedures as required by
Rule 13a-15 of the Exchange Act.

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     (dd) Accounting Controls. Holdings and its subsidiaries maintain systems of “internal
control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that
comply with the requirements of the Exchange Act and have been designed by, or under the
supervision of, their respective principal executive and principal financial officers, or
persons performing similar functions, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. Holdings and its
subsidiaries maintain internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management’s general or
specific authorizations; (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with generally accepted accounting principles and to
maintain asset accountability; (iii) access to assets is permitted only in accordance with
management’s general or specific authorization; and (iv) the recorded accountability for
assets is compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences. Except as disclosed in each of the Registration
Statement, the Time of Sale Information and the Prospectus, there are no material weaknesses
or significant deficiencies in Holdings’ internal controls.

     (ee) Insurance. Holdings and its subsidiaries have insurance covering their respective
properties, operations, personnel and businesses, which insurance is in amounts and insures
against such losses and risks as are customary in their respective businesses; and neither
Holdings nor any of its subsidiaries has (i) received notice from any insurer or agent of
such insurer that capital improvements or other expenditures are required or necessary to be
made in order to continue such insurance or (ii) any reason to believe that it will not be
able to renew its existing insurance coverage as and when such coverage expires or to obtain
similar coverage at reasonable cost from similar insurers as may be necessary to continue
its business.

     (ff) No Unlawful Payments. Neither Holdings nor any of its subsidiaries nor, to the
best knowledge of the Issuers and each of the Guarantors, any director, officer, agent,
employee or other person associated with or acting on behalf of Holdings or any of its
subsidiaries has (i) used any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expense relating to political activity; (ii) made any direct
or indirect unlawful payment to any foreign or domestic government official or employee from
corporate funds; (iii) violated or is in violation of any provision of the Foreign Corrupt
Practices Act of 1977; or (iv) made any bribe, rebate, payoff, influence payment, kickback
or other unlawful payment.

     (gg) Compliance with Money Laundering Laws. The operations of Holdings and its
subsidiaries are and have been conducted at all times in compliance with applicable
financial recordkeeping and reporting requirements of the Currency and Foreign Transactions
Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the
rules and regulations thereunder and any related or similar rules, regulations or
guidelines, issued, administered or enforced by any governmental agency (collectively, the
“Money Laundering Laws”) and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving

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Holdings or any of its subsidiaries with respect to the Money Laundering Laws is
pending or, to the best knowledge of Holdings, threatened.

     (hh) Compliance with OFAC. None of Holdings, any of its subsidiaries or, to the
knowledge of Holdings, any director, officer, agent, employee or affiliate of Holdings or
any of its subsidiaries is currently subject to any U.S. sanctions administered by the
Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”); and
Holdings will not directly or indirectly use the proceeds of the offering of the Securities
hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary,
joint venture partner or other person or entity, for the purpose of financing the activities
of any person currently subject to any U.S. sanctions administered by OFAC.

     (ii) No Restrictions on Subsidiaries. No subsidiary of Holdings is currently
prohibited, directly or indirectly, under any agreement or other instrument to which it is a
party or is subject, from paying any dividends or distributions to Holdings, from making any
other distribution on such subsidiary’s capital stock, from repaying to Holdings any loans
or advances to such subsidiary from Holdings or from transferring any of such subsidiary’s
properties or assets to Holdings or any other subsidiary of Holdings.

     (jj) No Broker’s Fees. Neither Holdings nor any of its subsidiaries is a party to any
contract, agreement or understanding with any person (other than this Agreement) that would
give rise to a valid claim against any of them or any Underwriter for a brokerage
commission, finder’s fee or like payment in connection with the offering and sale of the
Securities.

     (kk) No Registration Rights. No person has the right to require Holdings or any of its
subsidiaries to register any securities for sale under the Securities Act by reason of the
filing of the Registration Statement with the Commission or the issuance and sale of the
Securities.

     (ll) No Stabilization. Neither of the Issuers nor any of the Guarantors has taken,
directly or indirectly, any action designed to or that could reasonably be expected to cause
or result in any stabilization or manipulation of the price of the Securities.

     (mm) Margin Rules. Neither the issuance, sale and delivery of the Securities nor the
application of the proceeds thereof by the Issuers as described in the Registration
Statement, the Time of Sale Information and the Prospectus will violate Regulation T, U or X
of the Board of Governors of the Federal Reserve System or any other regulation of such
Board of Governors.

     (nn) Forward-Looking Statements. No forward-looking statement (within the meaning of
Section 27A of the Securities Act and Section 21E of the Exchange Act) contained or
incorporated by reference in any of the Registration Statement, the Time of Sale Information
and the Prospectus has been made or reaffirmed without a reasonable basis or has been
disclosed other than in good faith.

     (oo) Statistical and Market Data. Nothing has come to the attention of the Issuers
that has caused the Issuers to believe that the statistical and market-related data

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included or incorporated by reference in each of the Registration Statement, the Time
of Sale Information and the Prospectus is not based on or derived from sources that are
reliable and accurate in all material respects.

     (pp) Engineers; Reserve Report. The information described in the Registration
Statement, the Time of Sale Information and the Prospectus regarding the estimated proved
reserves of the Issuers and their respective subsidiaries is based on the report generated
by Wright and Company, Inc., as independent petroleum engineers with respect to Holdings and
its respective subsidiaries (the “Engineer”). The information underlying the estimates of
the reserves of the Issuers and their respective subsidiaries supplied by the Issuers to the
Engineer, for the purposes of preparing the reserve reports of the Issuers and their
respective subsidiaries referenced in the Registration Statement, the Time of Sale
Information and the Prospectus (the “Reserve Report”), was true and correct in all material
respects on the date of each such Reserve Report; the estimates of future capital
expenditures and other future exploration and development costs supplied to the Engineer
were prepared in good faith and with a reasonable basis; the information provided to the
Engineer for purposes of preparing the Reserve Report was prepared in all material respects
in accordance with customary industry practices; the Engineer was, as of the date of the
Reserve Report prepared by it, and is, as of the date hereof, independent petroleum engineer
with respect to Holdings and its subsidiaries; other than normal production of reserves and
intervening spot market product price fluctuations, and except as disclosed in the
Registration Statement, the Time of Sale Information and the Prospectus, the Issuers and the
Guarantors are not aware of any facts or circumstances that would result in a material
decline in the reserves in the aggregate, or the aggregate present value of future net cash
flows therefrom, as described in the Registration Statement, the Time of Sale Information
and the Prospectus and as reflected in the Reserve Report; estimates of such reserves and
the present value of the future net cash flows therefrom as described in the Registration
Statement, the Time of Sale Information and the Prospectus and reflected in the Reserve
Report comply in all material respects with the Securities Act.

     (qq) Sarbanes-Oxley Act. There is and has been no failure on the part of Holdings or
any of Holdings’ directors or officers, in their capacities as such, to comply with any
provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in
connection therewith (the “Sarbanes-Oxley Act”), to the extent applicable, including Section
402 related to loans and Sections 302 and 906 related to certifications.

     (rr) Status under the Securities Act. None of Holdings or the Issuers are ineligible
issuers, and Holdings is a well-known seasoned issuer, in each case as defined under the
Securities Act, in each case at the times specified in the Securities Act in connection with
the offering of the Securities.

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     4. Further Agreements of the Issuers and the Guarantors. Each of the Issuers and each
of the Guarantors jointly and severally covenant and agree with each Underwriter that:

     (a) Required Filings. The Issuers will file the final Prospectus with the Commission
within the time periods specified by Rule 424(b) and Rule 430A, 430B or 430C under the
Securities Act, will file any Issuer Free Writing Prospectus (including the Term Sheet in
the form of Annex C hereto) to the extent required by Rule 433 under the Securities Act; and
will file promptly all reports and any definitive proxy or information statements required
to be filed by the Issuers with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d)
of the Exchange Act subsequent to the date of the Prospectus and for so long as the delivery
of a prospectus is required in connection with the offering or sale of the Securities; and
the Issuers will furnish copies of the Prospectus and each Issuer Free Writing Prospectus
(to the extent not previously delivered) to the Underwriters in New York City prior to 10:00
A.M., New York City time, on the business day next succeeding the date of this Agreement in
such quantities as the Representative may reasonably request. Holdings or the Issuers will
pay the registration fees for this offering within the time period required by Rule
456(b)(1)(i) under the Securities Act (without giving effect to the proviso therein) and in
any event prior to the Closing Date.

     (b) Delivery of Copies. The Issuers will deliver, without charge, (i) to each
Underwriter (A) a conformed copy of the Registration Statement as originally filed and each
amendment thereto, in each case including all exhibits and consents filed therewith and (B)
during the Prospectus Delivery Period (as defined below), as many copies of the Prospectus
(including all amendments and supplements thereto and documents incorporated by reference
therein) and each Issuer Free Writing Prospectus as the Representative may reasonably
request. As used herein, the term “Prospectus Delivery Period” means such period of time
after the first date of the public offering of the Securities as in the opinion of counsel
for the Underwriters a prospectus relating to the Securities is required by law to be
delivered (or required to be delivered but for Rule 172 under the Securities Act) in
connection with sales of the Securities by any Underwriter or dealer.

     (c) Amendments or Supplements; Issuer Free Writing Prospectuses. Before making,
preparing, using, authorizing, approving, referring to or filing any Issuer Free Writing
Prospectus, and before filing any amendment or supplement to the Registration Statement or
the Prospectus, whether before or after the time that the Registration Statement becomes
effective, the Issuers will furnish to the Representative and counsel for the Underwriters a
copy of the proposed Issuer Free Writing Prospectus, amendment or supplement for review and
will not make, prepare, use, authorize, approve, refer to or file any such Issuer Free
Writing Prospectus or file any such proposed amendment or supplement to which the
Representative reasonably objects.

     (d) Notice to the Representative. The Issuers will advise the Representative promptly,
and confirm such advice in writing, (i) when any amendment to the Registration Statement has
been filed or becomes effective; (ii) when any supplement to the Prospectus or any amendment
to the Prospectus or any Issuer Free Writing Prospectus

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has been filed; (iii) of any request by the Commission for any amendment to the
Registration Statement or any amendment or supplement to the Prospectus or the receipt of
any comments from the Commission relating to the Registration Statement or any other request
by the Commission for any additional information; (iv) of the issuance by the Commission of
any order suspending the effectiveness of the Registration Statement or preventing or
suspending the use of any Preliminary Prospectus or the Prospectus or the initiation or
threatening of any proceeding for that purpose or pursuant to Section 8A of the Securities
Act; (v) of the occurrence of any event within the Prospectus Delivery Period as a result of
which the Prospectus, the Time of Sale Information or any Issuer Free Writing Prospectus as
then amended or supplemented would include any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances existing when the Prospectus, the Time
of Sale Information or any such Issuer Free Writing Prospectus is delivered to a purchaser,
not misleading; (vi) of the receipt by the Issuers of any notice of objection of the
Commission to the use of the Registration Statement or any post-effective amendment thereto
pursuant to Rule 401(g)(2) under the Securities Act; and (vii) of the receipt by the Issuers
of any notice with respect to any suspension of the qualification of the Securities for
offer and sale in any jurisdiction or the initiation or threatening of any proceeding for
such purpose; and the Issuers will use their reasonable best efforts to prevent the issuance
of any such order suspending the effectiveness of the Registration Statement, preventing or
suspending the use of any Preliminary Prospectus or the Prospectus or suspending any such
qualification of the Securities and, if any such order is issued, will obtain as soon as
possible the withdrawal thereof.

     (e) Time of Sale Information. If at any time prior to the Closing Date (i) any event
shall occur or condition shall exist as a result of which any of the Time of Sale
Information as then amended or supplemented would include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading or (ii) it is
necessary to amend or supplement any of the Time of Sale Information to comply with law, the
Issuers will immediately notify the Underwriters thereof and forthwith prepare and, subject
to paragraph (c) above, file with the Commission (to the extent required) and furnish to the
Underwriters and to such dealers as the Representative may designate, such amendments or
supplements to any of the Time of Sale Information as may be necessary so that the
statements in any of the Time of Sale Information as so amended or supplemented will not, in
light of the circumstances under which they were made, be misleading or so that any of the
Time of Sale Information will comply with law.

     (f) Ongoing Compliance. If during the Prospectus Delivery Period (i) any event shall
occur or condition shall exist as a result of which the Prospectus as then amended or
supplemented would include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances existing when the Prospectus is delivered to a
purchaser, not misleading or (ii) it is necessary to amend or supplement the Prospectus to
comply with law, the Issuers will immediately notify the Underwriters thereof and forthwith
prepare and, subject to paragraph (c) above, file with the

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Commission and furnish to the Underwriters and to such dealers as the Representative
may designate, such amendments or supplements to the Prospectus as may be necessary so that
the statements in the Prospectus as so amended or supplemented will not, in the light of the
circumstances existing when the Prospectus is delivered to a purchaser, be misleading or so
that the Prospectus will comply with law.

     (g) Blue Sky Compliance. The Issuers will qualify the Securities for offer and sale
under the securities or Blue Sky laws of such jurisdictions as the Representative shall
reasonably request and will continue such qualifications in effect so long as required for
distribution of the Securities; provided that neither the Issuers nor any of the
Guarantors shall be required to (i) qualify as a foreign corporation or other entity or as a
dealer in securities in any such jurisdiction where it would not otherwise be required to so
qualify, (ii) file any general consent to service of process in any such jurisdiction or
(iii) subject itself to taxation in any such jurisdiction if it is not otherwise so subject.

     (h) Earning Statement. The Issuers will make generally available to its security
holders and the Representative as soon as practicable an earning statement that satisfies
the provisions of Section 11(a) of the Securities Act and Rule 158 of the Commission
promulgated thereunder covering a period of at least twelve months beginning with the first
fiscal quarter of Holdings occurring after the “effective date” (as defined in Rule 158) of
the Registration Statement.

     (i) Clear Market. During the period from the date hereof through and including the
date that is 60 days after the date hereof, neither Holdings nor any its affiliates will,
without the prior written consent of the Representative, offer, sell, contract to sell or
otherwise dispose of any debt securities issued or guaranteed by the Issuers or any of the
Guarantors and having a tenor of more than one year.

     (j) Use of Proceeds. The Issuers will apply the net proceeds from the sale of the
Securities as described in the Registration Statement, the Time of Sale Information and the
Prospectus under the heading “Use of proceeds”.

     (k) No Stabilization. Neither the Issuers nor any of the Guarantors will take,
directly or indirectly, any action designed to or that could reasonably be expected to cause
or result in any stabilization or manipulation of the price of the Securities.

     (l) Record Retention. The Issuers will, pursuant to reasonable procedures developed in
good faith, retain copies of each Issuer Free Writing Prospectus that is not filed with the
Commission in accordance with Rule 433 under the Securities Act.

     5. Certain Agreements of the Underwriters. Each Underwriter hereby represents and
agrees that:

     (a) It has not and will not use, authorize use of, refer to, or participate in the
planning for use of, any “free writing prospectus”, as defined in Rule 405 under the
Securities Act (which term includes use of any written information furnished to the
Commission by the Issuers and not incorporated by reference into the Registration Statement
and any press release issued by the Issuers) other than (i) a free writing

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prospectus that, solely as a result of use by such Underwriter, would not trigger an
obligation to file such free writing prospectus with the Commission pursuant to Rule 433,
(ii) any Issuer Free Writing Prospectus listed on Annex B or prepared pursuant to Section
3(c) or Section 4(c) above (including any electronic road show), or (iii) any free writing
prospectus prepared by such Underwriter and approved by the Issuers in advance in writing
(each such free writing prospectus referred to in clauses (i) or (iii), an “Underwriter Free
Writing Prospectus”). Notwithstanding the foregoing, the Underwriters may use a term sheet
substantially in the form of Annex C hereto without the consent of the Issuers.

     (b) It is not subject to any pending proceeding under Section 8A of the Securities Act
with respect to the offering (and will promptly notify the Issuers if any such proceeding
against it is initiated during the Prospectus Delivery Period).

     6. Conditions of Underwriters’ Obligations. The obligation of each Underwriter to
purchase Securities on the Closing Date as provided herein is subject to the performance by each of
the Issuers and each of the Guarantors of their respective covenants and other obligations
hereunder and to the following additional conditions:

     (a) Registration Compliance; No Stop Order. No order suspending the effectiveness of
the Registration Statement shall be in effect, and no proceeding for such purpose, pursuant
to Rule 401(g)(2) or pursuant to Section 8A under the Securities Act shall be pending before
or threatened by the Commission; the Prospectus and each Issuer Free Writing Prospectus
shall have been timely filed with the Commission under the Securities Act (in the case of a
Issuer Free Writing Prospectus, to the extent required by Rule 433 under the Securities Act)
and in accordance with Section 4(a) hereof; and all requests by the Commission for
additional information shall have been complied with to the reasonable satisfaction of the
Representative.

     (b) Representations and Warranties. The representations and warranties of each of the
Issuers and the Guarantors contained herein shall be true and correct on the date hereof and
on and as of the Closing Date; and the statements of each of the Issuers, the Guarantors and
their respective officers made in any certificates delivered pursuant to this Agreement
shall be true and correct on and as of the Closing Date.

     (c) No Downgrade. Subsequent to the earlier of (A) the Time of Sale and (B) the
execution and delivery of this Agreement, (i) no downgrading shall have occurred in the
rating accorded the Securities or any other debt securities or preferred stock issued or
guaranteed by Holdings or any of its subsidiaries by any “nationally recognized statistical
rating organization”, as such term is defined by the Commission for purposes of Rule
436(g)(2) under the Securities Act; and (ii) no such organization shall have publicly
announced that it has under surveillance or review, or has changed its outlook with respect
to, its rating of the Securities or of any other debt securities or preferred stock issued
or guaranteed by Holdings or any of its subsidiaries (other than an announcement with
positive implications of a possible upgrading).

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     (d) No Material Adverse Change. No event or condition of a type described in Section
3(g) hereof shall have occurred or shall exist, which event or condition is not described in
the Time of Sale Information (excluding any amendment or supplement thereto) and the
Prospectus (excluding any amendment or supplement thereto) and the effect of which in the
judgment of the Representative makes it impracticable or inadvisable to proceed with the
offering, sale or delivery of the Securities on the terms and in the manner contemplated by
this Agreement, the Time of Sale Information and the Prospectus.

     (e) Officer’s Certificate. The Representative shall have received on and as of the
Closing Date a certificate of an executive officer of the Issuers and of each Guarantor who
has specific knowledge of the Issuers’ or such Guarantor’s financial matters and is
satisfactory to the Representative (i) confirming that each of the representations and
warranties of the Issuers and the Guarantors in this Agreement are true and correct and that
the Issuers and the Guarantors have complied with all agreements and satisfied all
conditions on their part to be performed or satisfied hereunder at or prior to the Closing
Date and (ii) to the effect set forth in paragraphs (a), (c) and (d) above.

     (f) Comfort Letters. On the date of this Agreement and on the Closing Date, Grant
Thornton LLP shall have furnished to the Representative, at the request of the Issuers,
letters, dated the respective dates of delivery thereof and addressed to the Underwriters,
in form and substance reasonably satisfactory to the Representative, containing statements
and information of the type customarily included in accountants’ “comfort letters” to
underwriters with respect to the financial statements and certain financial information
contained or incorporated by reference in the Registration Statement, the Time of Sale
Information and the Prospectus; provided that the letter delivered on the Closing
Date shall use a “cut-off” date no more than three business days prior to the Closing Date.

     (g) Reserve Engineer Letter. The Underwriters shall have received a letter, dated the
Closing Date and addressed to the Underwriters, from Wright and Company, Inc., an
independent petroleum engineering firm with respect to Holdings and/or its subsidiaries, in
form and substance reasonably satisfactory to the Underwriters and counsel for the
Underwriters.

     (h) Opinion and 10b-5 Statement of Counsel for the Issuers. Ledgewood, P.C., counsel
for the Issuers and the Guarantors, shall have furnished to the Representative, at the
request of the Issuers and the Guarantors, their written opinion and 10b-5 statement, dated
the Closing Date and addressed to the Underwriters, in form and substance reasonably
satisfactory to the Representative, to the effect set forth in Annex A hereto.

     (i) Opinion and 10b-5 Statement of Counsel for the Underwriters. The Representative
shall have received on and as of the Closing Date an opinion and 10b-5 statement of Cahill
Gordon & Reindel llp, counsel for the Underwriters, with respect to such matters as
the Representative may reasonably request, and such counsel shall have

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received such documents and information as they may reasonably request to enable them
to pass upon such matters.

     (j) No Legal Impediment to Issuance. No action shall have been taken and no statute,
rule, regulation or order shall have been enacted, adopted or issued by any federal, state
or foreign governmental or regulatory authority that would, as of the Closing Date, prevent
the issuance or sale of the Securities or the issuance of the Guarantees; and no injunction
or order of any federal, state or foreign court shall have been issued that would, as of the
Closing Date, prevent the issuance or sale of the Securities or the issuance of the
Guarantees.

     (k) Good Standing. The Representative shall have received on and as of the Closing
Date satisfactory evidence of the good standing of each of the Issuers and each of the
Guarantors in their respective jurisdictions of organization and their good standing in such
other jurisdictions as the Representative may reasonably request, in each case in writing or
any standard form of telecommunication, from the appropriate governmental authorities of
such jurisdictions.

     (l) Additional Documents. On or prior to the Closing Date, the Issuers and the
Guarantors shall have furnished to the Representative such further certificates and
documents as the Representative may reasonably request.

     All opinions, letters, certificates and evidence mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Underwriters.

     7. Indemnification and Contribution.

     (a) Indemnification of the Underwriters. Each of the Issuers and each of the Guarantors
jointly and severally agree to indemnify and hold harmless each Underwriter, its affiliates,
directors and officers and each person, if any, who controls (within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act), such Underwriter from and against any and
all losses, claims, damages and liabilities (including, without limitation, reasonable legal fees
and other expenses incurred in connection with any suit, action or proceeding or any claim
asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are
based upon, (i) any untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement or caused by any omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the statements therein,
not misleading, (ii) or any untrue statement or alleged untrue statement of a material fact
contained in the Prospectus (or any amendment or supplement thereto), any Issuer Free Writing
Prospectus or any Time of Sale Information, or caused by any omission or alleged omission to state
therein a material fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading, in each case except insofar as such
losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in conformity with any
information relating to any Underwriter furnished to the Issuers in writing by such Underwriter
through the Representative expressly for use therein.

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     (b) Indemnification of the Issuers. Each Underwriter agrees, severally and not jointly, to
indemnify and hold harmless the Issuers, each of the Guarantors, each of their respective directors
and officers who signed the Registration Statement and each person, if any, who controls (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Issuers or
any of the Guarantors to the same extent as the indemnity set forth in paragraph (a) above, but
only with respect to any losses, claims, damages or liabilities that arise out of, or are based
upon, any untrue statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with any information relating to such Underwriter furnished to the Issuers
in writing by such Underwriter through the Representative expressly for use in the Registration
Statement, the Prospectus (or any amendment or supplement thereto), any Issuer Free Writing
Prospectus or any Time of Sale Information, it being understood and agreed that the only such
information consists of the following: the third sentence of the sixth paragraph and the first,
second and third sentences of the tenth paragraph under the caption “Underwriting” in the
Prospectus Supplement.

     (c) Notice and Procedures. If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against any person in
respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such
person (the “Indemnified Person”) shall promptly notify the person against whom such
indemnification may be sought (the “Indemnifying Person”) in writing; provided that the
failure to notify the Indemnifying Person shall not relieve it from any liability that it may have
under paragraphs (a) and (b) above except to the extent that it has been materially prejudiced
(through the forfeiture of substantive rights or defenses) by such failure; and provided,
further, that the failure to notify the Indemnifying Person shall not relieve it from any
liability that it may have to an Indemnified Person otherwise than under paragraphs (a) and (b)
above. If any such proceeding shall be brought or asserted against an Indemnified Person and it
shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person (who shall not, without the consent of the
Indemnified Person, be counsel to the Indemnifying Person) to represent the Indemnified Person and
any others entitled to indemnification pursuant to this Section 7 that the Indemnifying Person may
designate in such proceeding and shall pay the fees and expenses of such proceeding and shall pay
the fees and expenses of such counsel related to such proceeding, as incurred. In any such
proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the
Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the
Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory
to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there
may be legal defenses available to it that are different from or in addition to those available to
the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded
parties) include both the Indemnifying Person and the Indemnified Person and representation of both
parties by the same counsel would be inappropriate due to actual or potential differing interests
between them. It is understood and agreed that the Indemnifying Person shall not, in connection
with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and
expenses of more than one separate firm (in addition to any local counsel) for all Indemnified
Persons, and that all such fees and expenses shall be reimbursed as they are incurred. Any such
separate firm for any Underwriter, its affiliates, directors and officers and any control persons
of such Underwriter shall be designated in writing

-21-

 

by J.P. Morgan Securities Inc. and any such separate firm for the Issuers, the Guarantors,
their respective directors and officers who signed the Registration Statement and any control
persons of the Issuers and the Guarantors shall be designated in writing by the Issuers. The
Indemnifying Person shall not be liable for any settlement of any proceeding effected without its
written consent, but if settled with such consent or if there be a final judgment for the
plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any
loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing
sentence, if at any time an Indemnified Person shall have requested that an Indemnifying Person
reimburse the Indemnified Person for fees and expenses of counsel as contemplated by this
paragraph, the Indemnifying Person shall be liable for any settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more than 30 days after receipt
by the Indemnifying Person of such request and (ii) the Indemnifying Person shall not have
reimbursed the Indemnified Person in accordance with such request prior to the date of such
settlement. No Indemnifying Person shall, without the written consent of the Indemnified Person,
effect any settlement of any pending or threatened proceeding in respect of which any Indemnified
Person is or could have been a party and indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement (x) includes an unconditional release of such
Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from
all liability on claims that are the subject matter of such proceeding and (y) does not include any
statement as to or any admission of fault, culpability or a failure to act by or on behalf of any
Indemnified Person.

     (d) Contribution. If the indemnification provided for in paragraphs (a) and (b) above is
unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or
liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of
indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by
such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received by the Issuers and the
Guarantors on the one hand and the Underwriters on the other from the offering of the Securities or
(ii) if the allocation provided by clause (i) is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i)
but also the relative fault of the Issuers and the Guarantors on the one hand and the Underwriters
on the other in connection with the statements or omissions that resulted in such losses, claims,
damages or liabilities, as well as any other relevant equitable considerations. The relative
benefits received by the Issuers and the Guarantors on the one hand and the Underwriters on the
other shall be deemed to be in the same respective proportions as the net proceeds (before
deducting expenses) received by the Issuers from the sale of the Securities bear to the total
underwriting discounts and commissions received by the Underwriters in connection therewith, in
each case as set forth in the table on the cover of the Prospectus, bear to the aggregate offering
price of the Securities. The relative fault of the Issuers and the Guarantors on the one hand and
the Underwriters on the other shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Issuers or any Guarantor or by the
Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

-22-

 

     (e) Limitation on Liability. The Issuers, the Guarantors and the Underwriters agree that it
would not be just and equitable if contribution pursuant to this Section 7 were determined by pro
rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any
other method of allocation that does not take account of the equitable considerations referred to
in paragraph (d) above. The amount paid or payable by an Indemnified Person as a result of the
losses, claims, damages and liabilities referred to in paragraph (d) above shall be deemed to
include, subject to the limitations set forth above, any legal or other expenses incurred by such
Indemnified Person in connection with any such action or claim. Notwithstanding the provisions of
this Section 7, in no event shall an Underwriter be required to contribute any amount in excess of
the amount by which the total underwriting discounts and commissions received by such Underwriter
with respect to the offering of the Securities exceeds the amount of any damages that such
Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement
or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to
contribute pursuant to this Section 7 are several in proportion to their respective purchase
obligations hereunder and not joint.

     (f) The Issuers and the Guarantors hereby confirm their engagement of the services of
Citigroup Global Markets Inc. as, and Citigroup Global Markets Inc. hereby confirms its agreement
with the Issuers and the Guarantors to render services as, a “qualified independent underwriter”
within the meaning of Rule 2720 with respect to the offering and sale of the Securities. The
Issuers and the Guarantors also agree, jointly and severally, to indemnify and hold harmless
Citigroup Global Markets Inc., its affiliates, directors and officers and each person, if any, who
controls Citigroup Global Markets Inc. within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act, from and against any and all losses, claims, damages and
liabilities incurred as a result of Citigroup Global Market Inc.’s participation as a “qualified
independent underwriter” within the meaning of Rule 2720 in connection with the offering of the
Securities, or if the indemnification provided for in this Section is unavailable or insufficient
to hold harmless Citigroup Global Markets Inc., then the Issuers and the Guarantors shall
contribute, jointly and severally, to the amount paid or payable by Citigroup Global Markets Inc.
as a result of the losses, claims, damages or liabilities, based on the factors described in
Section 7(d) above.

     (g) Non-Exclusive Remedies. The remedies provided for in this Section 7 are not exclusive and
shall not limit any rights or remedies that may otherwise be available to any Indemnified Person at
law or in equity.

     8. Termination. This Agreement may be terminated in the absolute discretion of the
Representative, by notice to the Company, if after the execution and delivery of this Agreement and
on or prior to the Closing Date (i) trading generally shall have been suspended or materially
limited on the New York Stock Exchange or the over-the-counter market; (ii) trading of any
securities issued or guaranteed by the Issuers or any of the Guarantors shall have been suspended
on any exchange or in any over-the-counter market; (iii) a general moratorium on commercial banking
activities shall have been declared by federal or New York State authorities; or (iv) there shall
have occurred any outbreak or escalation of hostilities or any change in financial markets or any
calamity or crisis, either within or outside the United States, that, in the judgment of the

-23-

 

Representative, is material and adverse and makes it impracticable or inadvisable to proceed
with the offering, sale or delivery of the Securities on the terms and in the manner contemplated
by this Agreement, the Time of Sale Information and the Prospectus.

     9. Defaulting Underwriter.

     (a) If, on the Closing Date, any Underwriter defaults on its obligation to purchase the
Securities that it has agreed to purchase hereunder, the non-defaulting Underwriters may in their
discretion arrange for the purchase of such Securities by other persons satisfactory to the Issuers
on the terms contained in this Agreement. If, within 36 hours after any such default by any
Underwriter, the non-defaulting Underwriters do not arrange for the purchase of such Securities,
then the Issuers shall be entitled to a further period of 36 hours within which to procure other
persons satisfactory to the non-defaulting Underwriters to purchase such Securities on such terms.
If other persons become obligated or agree to purchase the Securities of a defaulting Underwriter,
either the non-defaulting Underwriters or the Issuers may postpone the Closing Date for up to five
full business days in order to effect any changes that in the opinion of counsel for the Issuers or
counsel for the Underwriters may be necessary in the Registration Statement and the Prospectus or
in any other document or arrangement, and the Issuers agree to promptly prepare any amendment or
supplement to the Registration Statement and the Prospectus that effects any such changes. As used
in this Agreement, the term “Underwriter” includes, for all purposes of this Agreement unless the
context otherwise requires, any person not listed in Schedule 1 hereto that, pursuant to this
Section 9, purchases Securities that a defaulting Underwriter agreed but failed to purchase.

     (b) If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Underwriter or Underwriters by the non-defaulting Underwriters and the Issuers as
provided in paragraph (a) above, the aggregate principal amount of such Securities that remains
unpurchased does not exceed one-tenth of the aggregate principal amount of all the Securities, then
the Issuers shall have the right to require each non-defaulting Underwriter to purchase the
principal amount of Securities that such Underwriter agreed to purchase hereunder plus such
Underwriter’s pro rata share (based on the principal amount of Securities that such
Underwriter agreed to purchase hereunder) of the Securities of such defaulting Underwriter or
Underwriters for which such arrangements have not been made.

     (c) If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Underwriter or Underwriters by the non-defaulting Underwriters and the Issuers as
provided in paragraph (a) above, the aggregate principal amount of such Securities that remains
unpurchased exceeds one-tenth of the aggregate principal amount of all the Securities, or if the
Issuers shall not exercise the right described in paragraph (b) above, then this Agreement shall
terminate without liability on the part of the non-defaulting Underwriters. Any termination of
this Agreement pursuant to this Section 9 shall be without liability on the part of the Issuers,
except that the Issuers will continue to be liable for the payment of expenses as set forth in
Section 11 hereof and except that the provisions of Section 7 hereof shall not terminate and shall
remain in effect.

     (d) Nothing contained herein shall relieve a defaulting Underwriter of any liability it may
have to the Issuers or any non-defaulting Underwriter for damages caused by its default.

-24-

 

     10. Payment of Expenses.

     (a) Whether or not the transactions contemplated by this Agreement are consummated or this
Agreement is terminated, the Issuers and each of the Guarantors jointly and severally will pay or
cause to be paid all costs and expenses incident to the performance of their respective obligations
hereunder, including without limitation, (i) the costs incident to the authorization, issuance,
sale, preparation and delivery of the Securities and any taxes payable in that connection; (ii) the
costs incident to the preparation, printing and filing under the Securities Act of the Registration
Statement, the Preliminary Prospectus, any Issuer Free Writing Prospectus, any Time of Sale
Information and the Prospectus (including all exhibits, amendments and supplements thereto) and the
distribution thereof; (iii) the costs of reproducing and distributing each of the Transaction
Documents; (iv) the fees and expenses of the Issuers’ and the Guarantors’ counsel and independent
accountants; (v) the fees and expenses incurred in connection with the registration or
qualification and determination of eligibility for investment of the Securities under the laws of
such jurisdictions as the Representative may designate and the preparation, printing and
distribution of a Blue Sky Memorandum (including the related fees and expenses of counsel for the
Underwriters); (vi) any fees charged by rating agencies for rating the Securities; (vii) the fees
and expenses of the Trustee and any paying agent (including related fees and expenses of any
counsel to such parties); (viii) all expenses and application fees incurred in connection with any
filing with, and clearance of the offering by, FINRA; and (ix) all expenses incurred by the Issuers
in connection with any “road show” presentation to potential investors (including 50% of the
expense of any chartered aircraft jointly used).

     (b) If (i) this Agreement is terminated pursuant to Section 8, (ii) the Issuers for any reason
fail to tender the Securities for delivery to the Underwriters or (iii) the Underwriters decline to
purchase the Securities for any reason permitted under this Agreement (other than by reason of a
default by any of the Underwriters), each of the Issuers and each of the Guarantors jointly and
severally agrees to reimburse the Underwriters for all out-of-pocket costs and expenses (including
the fees and expenses of their counsel) reasonably incurred by the Underwriters in connection with
this Agreement and the offering contemplated hereby.

     11. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the
benefit of and be binding upon (i) the parties hereto and their respective successors and the
officers and directors and any controlling persons referred to herein, and (ii) the affiliates,
officers and directors of each Underwriter referred to in Section 7 hereof. Nothing in this
Agreement is intended or shall be construed to give any other person any legal or equitable right,
remedy or claim under or in respect of this Agreement or any provision contained herein. No
purchaser of Securities from any Underwriter shall be deemed to be a successor merely by reason of
such purchase.

     12. Survival. The respective indemnities, rights of contribution, representations,
warranties and agreements of the Issuers, the Guarantors and the Underwriters contained in this
Agreement or made by or on behalf of the Issuers, the Guarantors or the Underwriters pursuant to
this Agreement or any certificate delivered pursuant hereto shall survive the delivery of and
payment for the Securities and shall remain in full force and effect, regardless of any termination
of this Agreement or any investigation made by or on behalf of the Issuers, the Guarantors or the
Underwriters.

-25-

 

     13. Certain Defined Terms. For purposes of this Agreement, (a) except where otherwise
expressly provided, the term “affiliate” has the meaning set forth in Rule 405 under the Securities
Act; (b) the term “business day” means any day other than a day on which banks are permitted or
required to be closed in New York City; and (c) the term “subsidiary” has the meaning set forth in
Rule 405 under the Securities Act.

     14. Miscellaneous.

     (a) Authority of the Representative. Any action by the Underwriters hereunder may be taken by
J.P. Morgan Securities Inc. on behalf of the Underwriters, and any such action taken by J.P. Morgan
Securities Inc. shall be binding upon the Underwriters.

     (b) Notices. All notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted and confirmed by any standard form of
telecommunication. Notices to the Underwriters shall be given to the Representative c/o J.P.
Morgan Securities Inc., 270 Park Avenue, New York, New York 10017 (fax: (212)-270-1063); Attention:
Lawrence Landry. Notices to the Issuers and the Guarantors shall be given to them at Atlas Energy
Operating Company, LLC, 1550 Corapolis Heights Road, Second Floor, Moon Township, Pennsylvania
15108 (fax: (412) 262-2820; Attention: Lisa Washington), with a copy to Ledgewood, P.C., Attention:
Lisa A. Ernst, 1900 Market Street, Philadelphia, Pennsylvania 19103 (fax: (215) 735-2513;
Attention: Lisa A. Ernst).

     (c) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.

     (d) Counterparts. This Agreement may be signed in counterparts (which may include
counterparts delivered by any standard form of telecommunication), each of which shall be an
original and all of which together shall constitute one and the same instrument.

     (e) Amendments or Waivers. No amendment or waiver of any provision of this Agreement, nor any
consent or approval to any departure therefrom, shall in any event be effective unless the same
shall be in writing and signed by the parties hereto.

     (f) Headings. The headings herein are included for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this Agreement.

-26-

 

     If the foregoing is in accordance with your understanding, please indicate your acceptance of
this Agreement by signing in the space provided below.

	 	 	 	 	 
	 	Very truly yours,

ATLAS ENERGY OPERATING COMPANY, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Matthew A. Jones 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ATLAS ENERGY FINANCE CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Matthew A. Jones 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ATLAS ENERGY RESOURCES, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Matthew A. Jones 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	THE ENTITIES LISTED ON SCHEDULE 4 HERETO

 	 
	 	By:  	 	 
	 	 	Name:  	Matthew A. Jones 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

[Underwriting Agreement]

-27-

 

Accepted: July 13, 2009

J.P. MORGAN SECURITIES INC.

   For itself and on behalf of the

   several Underwriters listed

   in Schedule 1 hereto.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

[Underwriting Agreement]

-28-

 

Accepted: July 13, 2009

CITIGROUP GLOBAL MARKETS INC.

In its capacity as Qualified Independent

Underwriter

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

[Underwriting Agreement]

 

 

Schedule 1

	 	 	 	 	 
	Underwriter	 	Principal Amount
	J.P. Morgan Securities Inc.
	 	$	100,000,000.00	 
	Wells Fargo Securities, LLC
	 	$	46,000,000.00	 
	Banc of America Securities LLC
	 	$	14,000,000.00	 
	RBC Capital Markets Corporation
	 	$	8,000,000.00	 
	BNP Paribas Securities Corp.
	 	$	8,000,000.00	 
	BBVA Securities Inc.
	 	$	4,000,000.00	 
	BMO Capital Markets Corp.
	 	$	4,000,000.00	 
	Calyon Securities (USA) Inc.
	 	$	4,000,000.00	 
	Citigroup Global Markets Inc.
	 	$	4,000,000.00	 
	RBS Securities Inc.
	 	$	4,000,000.00	 
	Scotia Capital (USA) Inc.
	 	$	4,000,000.00	 
	Total
	 	$	200,000,000.00	 

 

 

Schedule 2

Guarantors

AER PIPELINE CONSTRUCTION, INC.

AIC, LLC

ATLAS AMERICA, LLC

ATLAS GAS & OIL COMPANY, LLC

ATLAS NOBLE LLC

ATLAS ENERGY INDIANA, LLC

ATLAS ENERGY MICHIGAN, LLC

ATLAS ENERGY OHIO, LLC

ATLAS ENERGY TENNESSEE, LLC

ATLAS RESOURCES, LLC

REI-NY, LLC.

RESOURCE ENERGY, LLC

RESOURCE WELL SERVICES, LLC

VIKING RESOURCES, LLC

WESTSIDE PIPELINE COMPANY LLC

 

 

Schedule 3

Subsidiaries of Atlas Energy Resources, LLC (“Holdings”)

	 	 	 	 	 
	 	 	Jurisdiction of Incorporation	 	Assumed Names Under Which
	Name of Subsidiary	 	or Organization	 	Subsidiary Does Business
	ATLAS ENERGY OPERATING COMPANY, LLC

	 	Delaware
	 	None
	ATLAS ENERGY FINANCE CORP.

	 	Delaware
	 	None
	AER PIPELINE CONSTRUCTION, INC.

	 	Delaware
	 	None
	AIC, LLC

	 	Delaware
	 	None
	ANTHEM SECURITIES, INC.

	 	Pennsylvania
	 	None
	ATLAS AMERICA, LLC

	 	Pennsylvania
	 	Atlas Energy Resources,

LLC (in Ohio)
	 

	 	 	 	Atlas Energy Resources
(in West Virginia and
Tennessee)
	ATLAS ENERGY INDIANA, LLC

	 	Indiana
	 	None
	ATLAS ENERGY MICHIGAN, LLC

	 	Delaware
	 	None
	ATLAS ENERGY OHIO, LLC

	 	Ohio
	 	None
	ATLAS ENERGY TENNESSEE, LLC

	 	Pennsylvania
	 	None
	ATLAS GAS & OIL COMPANY, LLC

	 	Michigan
	 	None
	ATLAS NOBLE LLC

	 	Delaware
	 	None
	ATLAS RESOURCES, LLC

	 	Pennsylvania
	 	Atlas Energy Resources
(in West Virginia and
Tennessee)
	REI-NY, LLC.

	 	Delaware
	 	None
	RESOURCE ENERGY, LLC

	 	Delaware
	 	Atlas Energy Resources

(in New York)
	RESOURCE WELL SERVICES, LLC

	 	Delaware
	 	None
	VIKING RESOURCES, LLC

	 	Pennsylvania
	 	None
	WESTSIDE PIPELINE COMPANY LLC

	 	Michigan
	 	None

 

 

Schedule 4

AER PIPELINE CONSTRUCTION, INC.

AIC, LLC

ATLAS AMERICA, LLC

ATLAS GAS & OIL COMPANY, LLC

ATLAS NOBLE LLC

ATLAS ENERGY INDIANA, LLC

ATLAS ENERGY MICHIGAN, LLC

ATLAS ENERGY OHIO, LLC

ATLAS ENERGY TENNESSEE, LLC

ATLAS RESOURCES, LLC

REI-NY, LLC.

RESOURCE ENERGY, LLC

RESOURCE WELL SERVICES, LLC

VIKING RESOURCES, LLC

WESTSIDE PIPELINE COMPANY LLC

 

 

ANNEX A

[Form of Opinion of Counsel for the Issuers and the Guarantors]

     (a) The Registration Statement is an “automatic shelf registration statement” as defined under
Rule 405 of the Securities Act that has been filed with the Commission not earlier than three years
prior to the date of the Underwriting Agreement and the Indenture was qualified under the Trust
Indenture Act as of the date and time specified in such opinion; each of the Preliminary Prospectus
and the Prospectus was filed with the Commission pursuant to the subparagraph of Rule 424(b) under
the Securities Act specified in such opinion on the date specified therein; and no order suspending
the effectiveness of the Registration Statement has been issued, no notice of objection of the
Commission to the use of such registration statement or any post-effective amendment thereto
pursuant to Rule 401(g)(2) under the Securities Act has been received by the Issuers and no
proceeding for that purpose or pursuant to Section 8A of the Securities Act against the Issuers or
in connection with the offering is pending or, to the best knowledge of such counsel, threatened by
the Commission.

     (b) The Registration Statement, the Preliminary Prospectus, each Issuer Free Writing
Prospectus included in the Time of Sale Information and the Prospectus (other than the financial
statements and related schedules therein, as to which such counsel need express no opinion) comply
as to form in all material respects with the requirements of the Securities Act; and the Indenture
complies as to form in all material respects with the requirements of the Trust Indenture Act.

     (c) Holdings and each of its subsidiaries have been duly organized and are validly existing
and in good standing under the laws of their respective jurisdictions of organization, are duly
qualified to do business and are in good standing in each jurisdiction in which the conduct of
their respective businesses requires such qualification, and have all power and authority necessary
to own or hold their respective properties and to conduct the businesses in which they are engaged,
except where the failure to be so qualified or have such power or authority would not, individually
or in the aggregate, have a Material Adverse Effect.

     (d) Holdings has capitalization as set forth in each of the Registration Statement, the Time
of Sale Information and the Prospectus under the heading “Capitalization”; and all the outstanding
shares of capital stock or other equity interests or other interests (including limited liability
company interests) of each subsidiary of Holdings have been duly and validly authorized and issued,
are fully paid and non-assessable, and all capital contributions in respect of such limited
liability company interests have been paid in full.

     (e) Each of the Issuers and each of the Guarantors have full right, power and authority to
execute and deliver each of the Transaction Documents to which each is a party and to perform their
respective obligations thereunder; and all action required to be taken for the due and proper
authorization, execution and delivery of each of the Transaction Documents and the consummation of
the transactions contemplated thereby has been duly and validly taken.

     (f) The Indenture has been duly authorized, executed and delivered by each of the Issuers and
each of the Guarantors and, assuming due execution and delivery thereof by the Trustee, constitutes
a valid and legally binding agreement of each of the Issuers and each of the

 

 

Guarantors enforceable against each of the Issuers and each of the Guarantors in accordance
with its terms, subject to the Enforceability Exceptions.

     (g) The Securities have been duly authorized, executed and delivered by each of the Issuers
and, when duly authenticated as provided in the Indenture and paid for as provided in this
Agreement, will be duly and validly issued and outstanding and will constitute valid and legally
binding obligations of each of the Issuers enforceable against each of the Issuers in accordance
with their terms, subject to the Enforceability Exceptions, and will be entitled to the benefits of
the Indenture; and the Guarantees have been duly authorized by each of the Guarantors and, when the
Securities have been duly executed, authenticated, issued and delivered as provided in the
Indenture and paid for as provided in this Agreement, will be valid and legally binding obligations
of each of the Guarantors, enforceable against each of the Guarantors in accordance with their
terms, subject to the Enforceability Exceptions, and will be entitled to the benefits of the
Indenture.

     (h) This Agreement has been duly authorized, executed and delivered by the Issuers.

     (i) Each Transaction Document and the Indenture conforms in all material respects to the
description thereof contained in each of the Registration Statement, the Time of Sale Information
and the Prospectus.

     (j) The execution, delivery and performance by each of the Issuers and each of the Guarantors
of each of the Transaction Documents to which each is a party, the issuance and sale of the
Securities (including the Guarantees) and compliance by each of the Issuers and each of the
Guarantors with the terms thereof and the consummation of the transactions contemplated by the
Transaction Documents will not (i) conflict with or result in a breach or violation of any of the
terms or provisions of, or constitute a default under, or result in the creation or imposition of
any lien, charge or encumbrance upon any property or assets of Holdings or any of its subsidiaries
pursuant to, any material indenture, mortgage, deed of trust, loan agreement or other material
agreement or instrument to which Holdings or any of its subsidiaries is a party or by which
Holdings or any of its subsidiaries is bound or to which any of the property or assets of Holdings
or any of its subsidiaries is subject, (ii) result in any violation of the provisions of the
charter or by-laws or similar organizational documents of Holdings or any of its subsidiaries or
(iii) result in the violation of any law or statute or any judgment, order, rule or regulation of
any court or arbitrator or governmental or regulatory authority, except, in the case of clauses (i)
and (iii) above, for any such conflict, breach, violation or default that would not, individually
or in the aggregate, have a Material Adverse Effect.

     (k) No consent, approval, authorization, order, registration or qualification of or with any
court or arbitrator or governmental or regulatory authority is required for the execution, delivery
and performance by each of the Issuers and each of the Guarantors of each of the Transaction
Documents to which each is a party, the issuance and sale of the Securities (including the
Guarantees) and compliance by each of the Issuers and each of the Guarantors with the terms thereof
and the consummation of the transactions contemplated by the Transaction Documents, except for the
registration of the Securities under the Securities Act, the qualification of the Indenture under
the Trust Indenture Act and such consents, approvals, authorizations, orders and registrations or
qualifications as may be required under applicable

-2-

 

state securities laws in connection with the purchase and distribution of the Securities by
the Underwriters.

     (l) To the best knowledge of such counsel, except as described in the Registration Statement,
the Time of Sale Information and the Prospectus, there are no legal, governmental or regulatory
investigations, actions, suits or proceedings pending to which Holdings or any of its subsidiaries
is or may be a party or to which any property of Holdings or any of its subsidiaries is or may be
the subject which, individually or in the aggregate, if determined adversely to Holdings or any of
its subsidiaries, could reasonably be expected to have a Material Adverse Effect; and no such
investigations, actions, suits or proceedings are threatened or, to the best knowledge of such
counsel, contemplated by any governmental or regulatory authority or threatened by others.

     (m) The descriptions in the Registration Statement, the Time of Sale Information and the
Prospectus of statutes, legal, governmental and regulatory proceedings and contracts and other
documents are accurate in all material respects; the statements in the Preliminary Prospectus and
Prospectus under the heading “Certain Federal Income Tax Considerations”, and the statements
incorporated by reference in the Preliminary Prospectus and the Prospectus from Item 3 of Part I of
Holdings’ Annual Report on Form 10-K for the year ended December 31, 2008, to the extent that they
constitute summaries of matters of law or regulation or legal conclusions, fairly summarize the
matters described therein in all material respects.

     (n) Neither Holdings nor any of its subsidiaries is, and after giving effect to the offering
and sale of the Securities and the application of the proceeds thereof as described in each of the
Registration Statement, the Time of Sale Information and the Prospectus none of them will be, an
“investment company” or an entity “controlled” by an “investment company” within the meaning of the
Investment Company Act.

     (o) The documents incorporated by reference in the Time of Sale Information and the Prospectus
or any further amendment or supplement thereto made by the Issuers prior to the Closing Date (other
than the financial statements and related schedules therein, as to which such counsel need express
no opinion), when they were filed with the Commission, complied as to form in all material respects
with the requirements of the Exchange Act and the rules and regulations of the Commission
thereunder; and such counsel has no reason to believe that any of such documents, when such
documents were so filed, contained any untrue statement of a material fact or omitted to state a
material fact necessary in order to make the statement therein, in the light of the circumstances
under which they were made when such documents were so filed, not misleading.

     (p) Neither the issuance, sale and delivery of the Securities nor the application of the
proceeds thereof by the Issuers as described in each of the Time of Sale Information and the
Prospectus will violate Regulation T, U or X of the Board of Governors of the Federal Reserve
System or any other regulation of such Board of Governors.

     Such counsel shall also state that they have participated in conferences with representatives
of the Issuers and with representatives of their independent accountants and counsel at which
conferences the contents of the Registration Statement, the Time of Sale

-3-

 

Information and the Prospectus and any amendment and supplement thereto and related matters
were discussed and, although such counsel assume no responsibility for the accuracy, completeness
or fairness of the Registration Statement, the Time of Sale Information, the Prospectus and any
amendment or supplement thereto (except as expressly provided above), nothing has come to the
attention of such counsel to cause such counsel to believe that the Registration Statement, at the
time of its effective date (including the information, if any, deemed pursuant to Rule 430A, 430B
or 430C to be part of the Registration Statement at the time of effectiveness), contained any
untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, that the Time of Sale
Information, at the Time of Sale (which such counsel may assume to be the date of the Underwriting
Agreement) contained any untrue statement of a material fact or omitted to state a material fact
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading or that the Prospectus or any amendment or supplement thereto as of its date
and the Closing Date contained or contains any untrue statement of a material fact or omits to
state a material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading (other than, in each case, the financial statements and
other financial information contained therein, as to which such counsel need express no belief).

     In rendering such opinion, such counsel may rely as to matters of fact on certificates of
responsible officers of the Issuers and the Guarantors and public officials that are furnished to
the Underwriters.

     The opinion of Ledgewood, P.C. described above shall be rendered to the Underwriters at the
request of the Issuers and shall so state therein.

-4-

 

ANNEX B

Time of Sale Information

Issuer Free Writing Prospectus containing the terms of the Securities and other information,
substantially in the form of Annex C.

 

 

ANNEX C

Pricing Term Sheet

Issuer Free Writing Prospectus filed pursuant to Rule 433

supplementing the Preliminary Prospectus Supplement dated July 13, 2009

(to Prospectus dated July 8, 2009)

Registration No. 333-160483

July 13, 2009

ATLAS ENERGY OPERATING COMPANY, LLC

ATLAS ENERGY FINANCE CORP.

	 	 	 
	Pricing Supplement
	Pricing Supplement dated July 13, 2009 to Preliminary Prospectus Supplement dated July 13, 2009 of
Atlas Energy Operating Company, LLC and Atlas Energy Finance Corp. This Pricing Supplement is
qualified in its entirety by reference to the Preliminary Prospectus Supplement. The information
in this Pricing Supplement supplements the Preliminary Prospectus Supplement and supersedes the
information in the Preliminary Prospectus Supplement to the extent it is inconsistent with the
information in the Preliminary Prospectus Supplement. Capitalized terms used in this Pricing
Supplement but not defined have the meanings given them in the Preliminary Prospectus Supplement.
	 
	 	 
	Issuers

	 	Atlas Energy Operating Company, LLC and Atlas Energy Finance Corp.
	 
	 	 
	Guarantors

	 	Atlas Energy Resources, LLC, AER Pipeline Construction, Inc., AIC,
	 

	 	LLC, Atlas America, LLC, Atlas Gas & Oil Company, LLC, Atlas Noble
LLC, Atlas Energy Indiana, LLC, Atlas Energy Michigan, LLC, Atlas
Energy Ohio, LLC, Atlas Energy Tennessee, LLC, Atlas Resources,
LLC, REI-NY, LLC., Resource Energy, LLC, Resource Well Services,
LLC, Viking Resources, LLC and Westside Pipeline Company LLC
	 
	 	 
	Title of Security

	 	12.125% Senior Notes due 2017 
	 
	 	 
	Aggregate Principal Amount

	 	$200,000,000 
	 
	 	 
	Maturity

	 	August 1, 2017 
	 
	 	 
	Public Offering Price

	 	98.116%, plus accrued interest, if any, from July 16, 2009 
	 
	 	 
	Coupon

	 	12.125% 
	 
	 	 
	Yield to Maturity

	 	12.500% 
	 
	 	 
	Spread to Treasury

	 	+932 bps 
	 
	 	 
	Benchmark

	 	UST 4.75% due August 15, 2017 
	 
	 	 
	Interest Payment Dates

	 	February 1 and August 1 of each year, beginning on February 1, 2010 
	 
	 	 
	Record Dates

	 	January 15 and July 15 

 

 

	 	 	 
	Optional Redemption

	 	On and after August 1, 2013, we may redeem all or, from time to time, a
part of the notes at the following redemption prices (expressed as a
percentage of principal amount of the notes), plus accrued and unpaid
interest on the notes, if any, to the applicable redemption date (subject
to the right of holders of record on the relevant record date to receive
interest due on the relevant interest payment date), if redeemed during
the twelve-month period beginning on August 1 of the years indicated
below:

	 	 	 	 	 
	Year	 	Percentage
	2013
	 	 	106.063	%
	2014
	 	 	103.031	%
	2015 and thereafter
	 	 	100.000	%

	 	 	 
	 

	 	In addition, at any time and from time to time prior to August 1, 2013,
the Company may at its option redeem all or a portion of the notes at a
redemption price equal to 100% of the principal amount thereof, plus a
“make-whole” premium, using a discount rate of Treasuries plus 0.50%.
	 
	 	 
	Optional Redemption with 

Equity
Proceeds

	 	

Prior to August 1, 2012, the Company may, at its option, on any one or
more occasions redeem up to 35% of the aggregate principal amount of the
outstanding notes with the net cash proceeds from certain equity offerings
at a redemption price of 112.125% of the principal amount thereof, plus
accrued and unpaid interest, if any, to the redemption date (subject to
the right of holders of record on the relevant record date to receive
interest due on the relevant interest payment date).
	 
	 	 
	Change of Control

	 	101%, plus accrued and unpaid interest, if any.
	 
	 	 
	Gross Proceeds

	 	$196,232,000 
	 
	 	 
	Underwriting Discount

	 	2.250% per note, $4,500,000 in the aggregate
	 
	 	 
	Net Proceeds to Issuers before
Expenses

	 	$191,732,000 
	 
	 	 
	Approximate Net Proceeds to
Issuers after Estimated
Expenses

	 	$190,882,000 
	 
	 	 
	Use of Proceeds

	 	Pay down a portion of the outstanding borrowings under the Revolving
Credit Facility of Atlas Energy Operating Company, LLC.
	 
	 	 
	Trade Date

	 	July 13, 2009 
	 
	 	 
	Settlement Date

	 	July 16, 2009 (T+3) 
	 
	 	 
	Ratings1

	 	B3/B+ 

 

			
	1	 	A securities rating is not a recommendation to buy, sell
or hold securities and may be subject to revision or withdrawal at any time.

-2-

 

	 	 	 
	Joint Book-Running Managers

	 	

J.P. Morgan Securities Inc.
Wells Fargo Securities, LLC
Banc of America Securities LLC
RBC Capital Markets Corporation
	 
	 	 
	Co-Managers

	 	BNP Paribas Securities Corp.
BBVA Securities Inc.
BMO Capital Markets Corp.
Calyon Securities (USA) Inc.
Citigroup Global Markets Inc.
RBS Securities Inc.
Scotia Capital (USA) Inc.
	 
	 	 
	Allocation
	 	 

	 	 	 	 	 
	 	 	Principal Amount of
	Name	 	 Notes to be Purchased
	J.P. Morgan Securities Inc.
	 	$	100,000,000	 
	Wells Fargo Securities, LLC
	 	 	46,000,000	 
	Banc of America Securities LLC
	 	 	14,000,000	 
	RBC Capital Markets Corporation
	 	 	8,000,000	 
	BNP Paribas Securities Corp.
	 	 	8,000,000	 
	BBVA Securities Inc.
	 	 	4,000,000	 
	BMO Capital Markets Corp.
	 	 	4,000,000	 
	Calyon Securities (USA) Inc.
	 	 	4,000,000	 
	Citigroup Global Markets Inc.
	 	 	4,000,000	 
	RBS Securities Inc.
	 	 	4,000,000	 
	Scotia Capital (USA) Inc.
	 	 	4,000,000	 

	 	 	 
	Denominations

	 	$2,000 and integral multiples of $1,000
	 
	 	 
	CUSIP/ISIN Numbers

	 	CUSIP: 049302AE2 

ISIN: US049302AE22 
	 
	 	 
	Listing

	 	None
	 
	Form of Offering

	 	SEC Registered (Registration No. 333-160483)

-3-

 

	 	 	 
	Additional Information:

	 	The following changes will be made to the Preliminary Prospectus Supplement. Other
information (including financial information) is deemed to have changed to the extent
affected by the changes described below.
	 
	 	 
	 

	 	The last sentence of the risk factor entitled “The notes offered hereby and the related
guarantees will be unsecured and effectively subordinated to our and the guarantors’
existing and future secured indebtedness” on page S-20 of the Preliminary Prospectus
Supplement is hereby amended and shall read in its entirety as follows:
	 
	 	 
	 

	 	As of March 31, 2009, after giving effect to the issuance of the notes offered hereby
and the contemplated use of proceeds, the notes and the guarantees would have been
effectively subordinated to $347.1 million of senior secured indebtedness under our
credit facility and we would have been able to incur an additional $251.8 million of
indebtedness under our credit facility on such date, subject to compliance with
financial covenants in the credit facility, all of which would have also been
effectively senior to the notes and the guarantees.
	 
	 	 
	 

	 	The “Capitalization” section on page S-38 of the Preliminary Prospectus Supplement will
be updated to reflect the following changes ($ in thousands):

	 	 	 	 	 
	Credit facility (2)
	 	$	347,118	 
	12.125% notes offered hereby
	 	 	200,000	 
	Total debt
	 	 	947,118	 
	Total capitalization
	 	$	2,051,570	 

	 	 	 
	 

	 	(1) For purposes of the “As adjusted” column, the amount outstanding under our credit
facility has been reduced by the net proceeds of $190.9 million from this offering.
	 
	 	 
	 

	 	(2) The credit facility’s $650.0 million borrowing base will be reduced by 25% of the
aggregate stated principal amount of the notes offered hereby, or $50.0 million, to
$600.0 million as a result of this offering. Approximately $251.8 million is expected
to be available for additional borrowing after application of the net proceeds of this
offering and approximately $1.1 million of letters of credit outstanding. As of June
30, 2009, we had $456.0 million of indebtedness outstanding under our credit facility
and approximately $1.1 million of letters of credit outstanding.
	 
	 	 
	 

	 	(4) The recorded amount of the notes offered hereby will be reduced by approximately
$3.8 million to reflect the original issue discount.
	 
	 	 
	 

	 	The second paragraph under “Description of the notes — Guarantees” on page S-45 of the
Preliminary Prospectus Supplement is hereby amended and shall read in its entirety as
follows:
	 
	 	 
	 

	 	As of March 31, 2009, on an as adjusted basis and after giving effect to this offering,
the application of net proceeds from this offering and as more fully described under
“Use of proceeds,” outstanding Indebtedness of the Guarantors would have been $947.1
million, of which $347.1 million would have been secured.

-4-

 

FREE WRITING PROSPECTUS LEGEND

ATLAS ENERGY OPERATING COMPANY, LLC AND ATLAS ENERGY FINANCE CORP. HAVE FILED A REGISTRATION
STATEMENT (INCLUDING A PROSPECTUS AND PROSPECTUS SUPPLEMENT) WITH THE SECURITIES AND EXCHANGE
COMMISSION (THE “SEC”) FOR THE OFFERING TO WHICH THIS COMMUNICATION RELATES. BEFORE YOU INVEST,
YOU SHOULD READ THE PROSPECTUS (INCLUDING THE PROSPECTUS SUPPLEMENT) IN THAT REGISTRATION STATEMENT
AND OTHER DOCUMENTS ATLAS ENERGY OPERATING COMPANY, LLC AND ATLAS ENERGY FINANCE CORP. HAVE FILED
WITH THE SEC FOR MORE COMPLETE INFORMATION ABOUT ATLAS ENERGY OPERATING COMPANY, LLC, ATLAS ENERGY
FINANCE CORP. AND THIS OFFERING. YOU MAY GET THESE DOCUMENTS FOR FREE BY VISITING THE SEC WEB SITE
AT WWW.SEC.GOV. ALTERNATIVELY, ATLAS ENERGY OPERATING COMPANY, LLC, ATLAS ENERGY FINANCE
CORP., THE UNDERWRITERS OR ANY DEALER PARTICIPATING IN THE OFFERING WILL ARRANGE TO SEND YOU THE
PROSPECTUS AND APPLICABLE PROSPECTUS SUPPLEMENT IF YOU REQUEST THEM FROM: J.P. MORGAN SECURITIES
INC., 270 PARK AVENUE, FLOOR 5, NEW YORK, NEW YORK 10017 OR BY CALLING (212) 270-1477; WELLS FARGO
SECURITIES, LLC, ATTN: HIGH YIELD SYNDICATE—DEANNA DEEP, 301 S. COLLEGE ST. 0608, CHARLOTTE, NC
28202 OR BY CALLING (704) 715-0540; BANC OF AMERICA SECURITIES LLC, ATTENTION: PROSPECTUS
DEPARTMENT, 100 WEST 33RD STREET, 3RD FLOOR, NEW YORK, NY 10001 OR BY CALLING (800) 294-1322; OR
RBC CAPITAL MARKETS CORPORATION, THREE WORLD FINANCIAL CENTER, 200 VESEY STREET, 9TH FLOOR, NEW
YORK, NY 10281-8098 OR BY CALLING (212) 

618-2207.

ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION AND
SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT
OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.

-5-EX-10.1

Exhibit 10.1

FIRST AMENDMENT

TO

ASSET PURCHASE AGREEMENT

          This FIRST AMENDMENT TO ASSET PURCHASE AGREEMENT (this “Amendment”) is made as of the
10th day of July, 2009, by and among Seminole Gas Company, L.L.C., an Oklahoma limited
liability company (the “Buyer”), NGAS Gathering, LLC, a Kentucky limited liability company (“NGL”),
Daugherty Petroleum, Inc., a Kentucky corporation (“DPI” and, collectively with NGL, the
“Sellers”), and NGAS Gathering II, LLC, a Kentucky limited liability company wholly owned by DPI
(“New NGAS Gathering”). Sellers and Buyer are sometimes referred to herein individually as a
“Party” and collectively as the “Parties.”

RECITALS

          A. Reference is made to that certain Asset Purchase Agreement (the “Agreement”) dated as of
May 11, 2009, by and between Sellers and Buyer, regarding the proposed sale of Seller’s right,
title and interest in the Gathering Assets (as defined in the Agreement).

          B. Seller and Buyer desire to amend the Agreement, as set forth herein, relating to certain
matters reflected herein.

          C. All capitalized terms used herein but not otherwise defined herein shall have the meanings
attributed to them in the Agreement.

          NOW, THEREFORE, for good and valuable consideration (the receipt and sufficiency of which are
hereby acknowledged), the Parties hereby amend the Agreement and agree as follows:

     1. Amendments. The Agreement is hereby amended as follows:

(i) Amendment to Article 1. Article 1 is hereby amended by modifying each
of the defined terms below to read in their entirety as follows:

“Ancillary Option Agreements” means each of the agreements and instruments
pertaining to any exercise of an NGAS Options, in accordance with terms
thereof, as set forth on Exhibit O, and the Kay Jay ROFR, in
accordance with the terms thereof, as set forth on Schedule H.

“Closing Date” means subject to the satisfaction of the conditions to
Closing set forth in Article 6, 10:00 a.m., Eastern Time, July 15,
2009, or such other date as may be mutually agreed by Buyer and Sellers in
writing.

“Equity Releases” has the meaning set forth in Exhibit O.

“NAESB Purchase Agreement” means the NAESB form gas purchase agreement,
together with the special provisions and any confirmations provided
thereunder and including the Forward Sales Agreement, by and between DPI, on
behalf of itself and the other DPI Producers, and SES, in substantially the
form of Exhibit I. The NAESB Purchase Agreement will be effective as of the
Effective Date, but to the extent Closing occurs on a date that is other
than the first of a calendar month, then the Gathering Fees thereunder shall
be prorated for the month in which Closing occurs, any volumes delivered by
DPI during the remainder of the calendar month in which Closing occurs shall
be deemed gathered (not purchased) by SES thereunder, and the purchase of
volumes of gas thereunder shall commence on the first day of the calendar
month immediately following the month in which closing occurs.

“NGAS Mortgages” means the instruments pursuant to which Sellers grant Buyer
a first priority Lien on all of the Retained Gathering Assets to secure the
performance of the Seller Secured Obligations, in substantially the form of
Exhibit M-1, as modified to accommodate recording practices and
statutory references in Kentucky, Tennessee and Virginia.

“NGAS Option Promissory Note” has the meaning set forth in Exhibit
O.

 

 

“NGAS Options,” “NGAS Option Promissory Note” and “NGAS Options Price” have
the meanings set forth in Exhibit O.

“Put Notice” has the meaning set forth in Exhibit O.

“Seminole Mortgages” means the instruments pursuant to which Buyer grants
New NGAS Gathering a Lien on all of the Purchased Assets, subordinated and
second in priority to the Liens in favor of International Bank of Commerce,
a Texas state banking association, to secure the performance of the Buyer
Secured Obligations, in substantially the form of Exhibit M-2, as
modified to accommodate recording practices and statutory references in
Kentucky, Tennessee and Virginia.

(ii) Amendment to Section 2.2. Section 2.2 is hereby amended by
restating the second to last sentence of Section 2.2 in its entirety to read
as follows:

“At the Closing, and subject to all of the terms and conditions of this
Agreement, in consideration of the (a) Sellers’ sale, transfer, assignment,
conveyance and delivery to Buyer of the Purchase Assets, free and clear of
all Liens (other than Permitted Encumbrances), (b) Sellers’ granting of the
NGAS Options, (c) DPI’s granting of the Kay Jay ROFR and (d) the Ancillary
Agreements and the other agreements and actions of Sellers (and certain
Affiliates of Sellers) contemplated by this Article 2, the Buyer
shall pay to the Sellers $28,000,000 (the “Purchase Price”), subject to any
adjustments contemplated in Sections 2.5, 5.1(b) and
9.1, by wire transfer on the Closing Date to KeyBank National
Association (as agent for all lenders under the NGAS Credit Agreement), for
the benefit of all Sellers, to be applied as a partial repayment of
outstanding borrowings under the NGAS Credit Agreement.”

(iii) Amendment to Section 2.11. Section 2.11 is hereby amended by
restating the second to last sentence of Section 2.11 in its entirety to
read as follows:

“In addition, the NAESB Purchase Agreement shall specify the terms of the
Forward Sales Agreement to be entered into at Closing.”

(iv) Amendment to Section 2.13. Section 2.13 is hereby amended by
restating paragraphs (a) and (c) in their entirety, each to read as follows:

“(a) NGAS Options. New NGAS Gathering and DPI shall grant to SES
the NGAS Options on the terms and conditions set forth in Schedule
O.”

(c) “Covenants. Sellers, Buyer and the Guarantors shall comply with
and perform, or cause to be complied with and performed, all of their
respective covenants and agreements pertaining to the NGAS Options and the
Kay Jay ROFR set forth in Exhibit O and Schedule H attached
hereto, respectively.”

(v) Amendment to Section 2.14. Section 2.14 is hereby amended by
restating subsection (b) in its entirety to read as follows:

“(b) If an NGAS Option is exercised, whether by SES or in accordance with
the put options provisions thereof, Buyer shall pay to the Sellers
$7,500,000, by wire transfer to KeyBank National Association (as agent for
all lenders under the NGAS Credit Agreement), for the benefit of all
Sellers, to be applied as a partial repayment of outstanding borrowings
under the NGAS Credit Agreement.

(vi) Amendment to Article 5. Article 5 is hereby amended by added
new Section 5.3 to read as follows:

“5.3 Covenants Regarding NGAS Credit Agreement. DPI shall not
authorize or permit, and New NGAS Gathering agrees, that New NGAS Gathering
shall not enter into or amend, modify or supplement any agreements,
guarantees, mortgages executed by New NGAS Gathering pursuant to the terms
of the NGAS Credit Agreement, such that any obligations pursuant to such
agreements, guarantees, mortgages of New NGAS Gathering exceed in the
aggregate $7,500,000.

(vii) Amendment to Section 11.1. Section 11.1 is hereby amended by
restating Section 11.1 in its entirety to read as follows:

2

 

“11.1 Entire Agreement; Amendment. This Agreement and the documents
referred to herein to be delivered pursuant hereto constitute the entire
agreement between the Parties pertaining to the subject matter hereof, and
supersede all prior and contemporaneous agreements, understandings,
negotiations and discussions of the Parties, whether oral or written, and
there are no warranties, representations or other agreements between the
Parties in connection with the subject matter hereof, except as specifically
set forth herein or therein. Except as otherwise contemplated in Exhibit
O attached hereto, no amendment, supplement, modification or termination
of this Agreement shall be binding unless executed in writing by the Party
to be bound thereby. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provision of this
Agreement, whether or not similar, nor shall such waiver constitute a
continuing waiver unless otherwise expressly provided.”

(viii) Amendment to Exhibits. Each Exhibit to the Agreement is hereby
restated and replaced with the exhibit attached hereto in the same corresponding
numerical sequence as such Exhibits were attached to the Agreement as of the
original date of execution.

(ix) Amendment to Exhibit O. A new Exhibit O is hereby added to the
Agreement in proper numerical sequence in the form attached hereto as Exhibit
O.

(x) Amendment to Schedule A. Schedule A is hereby restated and
replaced with the exhibit attached hereto as Schedule A.

(xi) Amendment to Schedule G. Schedule G is hereby restated and
replaced with the exhibit attached hereto as Schedule G.

(xii) Amendment to Schedule H. Schedule H is hereby restated and
replaced with the exhibit attached hereto as Schedule H.

(xiii) Amendment to Schedule 2.14(c). Schedule 2.14(c) is hereby
restated and replaced with the exhibit attached hereto as Schedule 2.14(c).

(xiv) The Agreement is hereby amended to correctly state Seminole Gas Company, an
Oklahoma corporation as Seminole Gas Company, L.L.C., an Oklahoma limited liability
company. Seminole Gas Company, L.L.C. ratifies and confirms the Agreement as if
originally stated therein. This name change relates back for all purposes to the
date of the Agreement.

     2. Ratification: Except as amended by this Amendment, all of the terms and provisions
of the Agreement are hereby ratified and affirmed in all respects and are incorporated herein by
reference.

     3. Entire Agreement. The Agreement (and the Exhibits and Schedules thereto), as
amended by this Amendment, constitutes the entire agreement of the parties with regard to the
subject matter hereof and supersedes any prior oral or written agreements or understandings.

     4. Counterparts. This Amendment may be executed in one or more counterparts
(including faxed or electronic counterparts), all of which shall be considered one and the same
agreement, and shall become effective when one or more counterparts hereof have been signed by each
of the Parties and delivered to the other Party.

[Remainder of page intentionally left blank.]

3

 

     IN WITNESS WHEREOF, this Amendment has been signed by or on behalf of each of the Parties as
of the date first above written.

	 	 	 	 	 
	 	NGAS GATHERING, LLC

 	 
	 	By:  	DAUGHERTY PETROLEUM, INC.
 	 
	 	 	its Sole Member 	 
	 
	 	By:  	                               /s/ William G. Barr III
 	 
	 	 	William G. Barr III, 	 
	 	 	Chief Executive Officer 	 
	 
	 	DAUGHERTY PETROLEUM, INC.

 	 
	 	By:  	./s/ William G. Barr III
 	 
	 	 	William G. Barr III, 	 
	 	 	Chief Executive Officer 	 
	 
	 	NGAS GATHERING II, LLC

 	 
	 	By:  	./s/ William G. Barr III
 	 
	 	 	William G. Barr III, 	 
	 	 	Chief Executive Officer 	 
	 
	 	SEMINOLE GAS COMPANY, L.L.C.

 	 
	 	By:  	/s/ Robert B. Rosene, Jr.
 	 
	 	 	Robert B. Rosene, Jr., 	 
	 	 	President 	 
	 

4

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