Document:

exv10w9

 

Exhibit 10.9

SECOND AMENDMENT TO BASE CONTRACT FOR SALE AND

PURCHASE OF NATURAL GAS

 

SECOND AMENDMENT TO

BASE CONTRACT FOR THE SALE AND PURCHASE OF NATURAL GAS

This Second Amendment To Base Contract For The Sale And Purchase Of Natural Gas (this
“Amendment”) is made and entered into on December 18, 2006 (the “Effective Date”)
by and among Atlas America, Inc. a Delaware corporation (“Atlas DE”), Viking Resources,
LLC, a Pennsylvania limited liability company (“Viking”), Atlas Resources, LLC, a
Pennsylvania limited liability company (“Atlas Resources”) Atlas Noble, LLC, a Delaware
limited liability company (“Atlas Noble”), Resource Energy, LLC, a Delaware limited
liability company (“Resource Energy” and together with Viking, Atlas Resources and Atlas
Noble, the “ATN Subsidiaries”), and UGI Energy Services, Inc. d/b/a/ GASMARK, a
Pennsylvania corporation (“GASMARK”). This Amendment modifies, supplements, forms part of,
and amends that certain Base Contract for the Sale and Purchase of Natural Gas entered into as of
November 13, 2002 between GASMARK and Viking Resources Corporation and assigned by Viking Resources
Corporation to Atlas PA by Assignment and Assumption Agreement dated October 1, 2004 (the “Base
Contract”) and amended by First Amendment to Base Contract for the Sale and Purchase of Natural
Gas dated November 22, 2005. Capitalized terms used in this Amendment that are not herein defined
will have the meanings ascribed to them in the Base Contract. In the event of a conflict between
the terms of this Amendment and the Base Contract, the terms of this Amendment shall apply.

WHEREAS, Atlas DE will transfer all of its natural gas and oil production and development
assets to Atlas Energy Resources, LLC (“ATN”) and its subsidiaries in connection with the
initial public offering of ATN and Atlas DE wishes to assign its rights, duties and interests as
seller under the Base Contract to the ATN Subsidiaries which will supply gas under the Base
Contract as of the Effective Date, and GASMARK has agreed to the assignment to and assumption by
the ATN Subsidiaries;

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

I.

ASSIGNMENT AND ASSUMPTION

     1.1 Assignment. Effective as of the Effective Date, Atlas DE does hereby sell,
grant, convey, assign, transfer and set over to the ATN Subsidiaries, jointly and severally, all of
its right, title and interest in and to the Base Contract and all transactions confirmed
thereunder.

     1.2 Consent to Assignment. GASMARK hereby consents to the assignment of the Base
Contract, and all transactions confirmed thereunder, from Atlas DE to the ATN Subsidiaries
effective as of the Effective Date.

     1.3 Assumption. The ATN Subsidiaries, jointly and severally, hereby assume and
agree to pay, discharge or perform, as appropriate, the Base Contract and all transactions
confirmed thereunder, and such Base Contract is hereby declared to be the debts, liabilities and
obligations of the ATN Subsidiaries from and after the Effective Date.

 

 

     1.4 Release and Discharge. Upon execution of this Amendment by the ATN
Subsidiaries, Atlas DE will be released from any liability or obligation under this Base Contract
and any transaction confirmed thereunder, that arises or accrues after the Effective Date of
assignment.

II.

MISCELLANEOUS

     2.1 Warranties. Each Party represents and warrants to the others that it has the
corporate authority to execute, deliver and perform this Amendment and has taken all actions
necessary to secure all necessary approvals required to be secured in connection therewith. The
execution, delivery and performance of this Amendment and the Base Contract have been duly
authorized by all necessary corporate action.

     2.2. No Third Party Benefit. Nothing contained in this Amendment, express or
implied, is intended to or shall be construed to confer upon or give any person, firm, or
corporation, other than the Parties and their respective permitted successors and assigns, any
remedy or claim under, or by reason of, this Amendment, or any term, covenant or condition hereof.
All conditions, promises and agreements contained in this Amendment shall be for the sole and
exclusive benefit of the Parties and their respective permitted successors and assigns.

     2.3 Entire Agreement. This Amendment and the Base Contract set forth the entire
understanding and agreement between the Parties as to matters covered herein and therein and
supersedes any other prior understanding, agreement or statement (written or oral) between the
Parties as to matters covered herein and therein.

     2.4 Headings. The headings contained in this Amendment are for convenience of
reference only and shall not affect, in any way, the meaning or interpretation of this Amendment.

     2.5 Amendments; Waivers. To be binding, any amendment of this Amendment must be
effected by an instrument in writing signed by all of the Parties. Rights hereunder shall not be
waived, except pursuant to a writing signed by the Party against which enforcement of the waiver is
sought.

     2.6 Rights and Remedies. The rights and remedies granted under this Amendment
shall not be exclusive but shall be in addition to all other rights and remedies available under
the Base Contract, at law or in equity.

     2.7 Expenses of Negotiation. All costs and expenses incurred in connection with
this Amendment are to be borne by the Party incurring such costs.

2

 

     2.8 Severability. It is the intention of the Parties hereto that whenever
possible, each provision of the Base Contract and this Amendment will be interpreted in such manner
as to be effective and valid under applicable law, but that if any provision of the Base Contract
or this Amendment, as the case may be, is held to be invalid, illegal or unenforceable in any
respect under any applicable law, such invalidity, illegality or unenforceability will not affect
any other provision, and the Base Contract and this Amendment, as the case may be, will be
reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein and/or therein, as the case may be.

     2.9 Counterparts; and Facsimile Signatures. This Amendment may be executed,
including by facsimile signature, in one or more counterparts, each of which when so executed shall
be deemed to be an original and all of which together shall constitute one and the same instrument.

     2.10 Governing Law. The interpretation and performance of this Amendment shall be
governed by the laws of the jurisdiction indicated in the Base Contract.

3

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this instrument or have caused this
instrument to be duly executed on their behalf, on the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 
	UGI ENERGY SERVICES, INC.	 	ATLAS AMERICA, INC.,
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name: Bradley C. Hall
	 	 	 	Name: Matthew A. Jones	 	 	 	 
	 

	 	Title: President
	 	 	 	Title: Chief Financial Officer	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	VIKING RESOURCES, LLC	 	ATLAS RESOURCES, LLC
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name: Matthew A. Jones
	 	 	 	Name: Matthew A. Jones	 	 	 	 
	 

	 	Title: Chief Financial Officer
	 	 	 	Title: Chief Financial Officer	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ATLAS NOBLE, LLC	 	RESOURCE ENERGY, LLC
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name: Matthew A. Jones
	 	 	 	Name: Matthew A. Jones	 	 	 	 
	 

	 	Title: Chief Financial Officer
	 	 	 	Title: Chief Financial Officer	 	 	 	 

4exv10w10

 

Exhibit 10.10

THIRD AMENDMENT TO BASE CONTRACT FOR SALE AND

PURCHASE OF NATURAL GAS

 

 

THIRD AMENDMENT TO

BASE GAS PURCHASE AGREEMENT

This Third Amendment to the Gas Purchase Agreement (this “Amendment”) is made and
entered into on January 5, 2007 to be effective as of December 18, 2006 (the “Effective
Date”) by and among Atlas America, Inc. (into which Atlas Energy Group, Inc. was previously
merged) (“Atlas DE”), Viking Resources, LLC (f/k/a Viking Resources Corporation)
(“Viking”). Atlas Resources, LLC (f/k/a Atlas Resources, Inc.) (“Atlas Resources”),
Resource Energy, LLC (f/k/a Resource Energy, Inc.) (“Resource Energy” and together with
Viking and Atlas Resources, the “ATN Subsidiaries”), and Hess Corporation (“Hess”).
This Amendment modifies, supplements, forms part of, and amends that certain Gas Purchase Agreement
with FirstEnergy Solutions Corp. dated as of March 31, 1999 (the “1999 Agreement”), as amended on
February 1, 2001 (the “2001 Amendment”) and on July 16, 2003 (the “2003 Amendment”), and assigned
to Hess by that Assignment of Transactions dated April 1, 2005 (the “2005 Assignment”)
(collectively, the “Base Contract”). Capitalized terms used in this Amendment that are
not herein defined will have the meanings ascribed to them in the Base Contract. In the event of a
conflict between the terms of this Amendment and the Base Contract, the terms of this Amendment
shall apply.

WHEREAS, Atlas DE and the ATN Subsidiaries collectively constitute the Seller under the Base
Contract;

WHEREAS, Atlas DE has transferred all of its natural gas and oil production and development
assets to Atlas Energy Resources, LLC (“ATN”) and its subsidiaries in connection with the
initial public offering of ATN and Atlas DE wishes to be released from its rights, duties and
interests under the Base Contract as of the Effective Date, and Hess has agreed to such a release,
provided that the ATN Subsidiaries remain jointly and severally liable for all obligations of
Seller under the Base Contract;

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

I. WAIVER AND CONFIRMATION OF CONTINUING JOINT AND SEVERAL

LIABILITY OF THE ATN SUBSIDIARIES

1.1 Waiver. Effective as of the Effective Date, Atlas DE does hereby waive all of its
right, title and interest in and to the Base Contract and all transactions thereunder, such waiver
to constitute the inurement of the same to the exclusive benefit of the ATN Subsidiaries.

1.2 Confirmation of Joint and Several Liability. The ATN Subsidiaries, shall, as of
the Effective Date, be the remaining parties that collectively constitute the Seller under the Base
Contract. For the avoidance of doubt, the ATN Subsidiaries hereby confirm the joint and several
nature of their obligations as Seller under the Base Contract and all transactions thereunder,
including in respect of any obligations incurred by Atlas DE under the Base Contract and any
transactions thereunder. Such obligations include those to pay, discharge or perform, as
appropriate, the Base Contract and all transactions thereunder, such Base Contract constituting,
for the avoidance of any doubt, the joint and several debts, liabilities and obligations of the ATN
Subsidiaries, from and after the Effective Date.

 

 

1.3 Release and Discharge. Upon the Effective Date, Atlas DE will be released from any
liability or obligation under the Base Contract and any transaction thereunder, that arises or
accrues after the Effective Date.

1.4 Consent to Release. Hess consents to the release described in Section 1.4.
Further, Hess hereby releases and agrees to the cancellation of (i) the Guaranty of Trading
Obligations, dated October 20, 2005, from Atlas DE and (ii) the commercial letter of credit in the
amount of $1,000,000 deposited with Hess.

1.5 Billing and Payment. Amounts due from Buyer for the calendar month December 2006
and thereafter shall be remitted to Atlas Energy Operating Company, LLC, as agent for Seller.

II. AMENDMENTS TO THE 1999 AGREEMENT

2.1 Section 10. NOTICES. Section 10 shall be deleted in its entirety and replaced with
the following in lieu thereof:

“10. NOTICES: Whenever under the terms of this Agreement, any notice is required or
permitted to be given by one party to the other, it shall be given in writing and shall be
effective upon receipt if sent by express courier or mailed, postage prepaid, to the
parties at the address set forth below, provided that confirmations and invoices may be
sent via facsimile:

	 	 	 	 	 
	 

	 	Seller:
	 	Atlas Resources, LLC

Resource Energy, LLC

Viking Resources, LLC
	 

	 	 	 	c/o Atlas Energy Operating Company, LLC
	 

	 	 	 	Attn: Michael Brecko

311 Rouser Road
	 

	 	 	 	P.O. Box 611
	 

	 	 	 	Moon Township. Pennsylvania 15108
	 
	 	 	 	 
	 

	 	Buyer:
	 	HESS CORPORATION
	 

	 	 	 	One Hess Plaza
	 

	 	 	 	Woodbridge, New Jersey 07095
	 

	 	 	 	Attention: Middle Office
	 

	 	 	 	Telephone: (732)750-6417
	 

	 	 	 	Facsimile: (732) 509-0502

With an additional copy of any notice of a potential event of default or an event of default
to the following:

HESS CORPORATION

1185 Avenue of the Americas

New York, NY 10036

Attention: Vice President, Chief Risk Officer

Telephone: (212)536-8252

2

 

2.2 Section 15. COMPLETE AGREEMENT. Section 15 shall be deleted in its entirety and
replaced with the following in lieu thereof:

"15. COMPLETE AGREEMENT: This Agreement sets forth the entire understanding and agreement
between the parties as to matters covered herein and supersedes any other prior
understanding, agreement or statement (written or oral) between the parties as to matters
covered herein.”

2.3 Financial Responsibility. The following shall be added as a new Section 16:

     "16. FINANCIAL RESPONSIBILITY.

     (A) In the event either party shall:

	 	(i)	 	Make an assignment or any general arrangement for the benefit of creditors;

	 
	 	(ii)	 	Fail to perform a payment or delivery obligation to the other party
on or before the second Business Day following the date written
notice is received;

	 
	 	(iii)	 	Fail to provide adequate assurance of its ability to perform all of
its outstanding obligations hereunder on or before the second
Business Day after a request for such assurance is made by the other
party when such party has reasonable grounds for insecurity;

	 
	 	(iv)	 	File a petition or otherwise commence, authorize, or acquiesce in the
commencement of a proceeding or cause under any bankruptcy or similar
law for the protection of creditors or have such petition filed or
proceeding commenced against it;

	 
	 	(v)	 	Otherwise become bankrupt or insolvent (however evidenced);

	 
	 	(vi)	 	Become unable to pay its debts as they fall due; or

	 
	 	(vii)	 	Fail to perform any other material covenant or obligation set forth
in this Agreement and not expressly covered by this Section, if such
failure is not remedied within three (3) Business Days after written
notice;

then such event shall constitute an Event of Default.

	 	(B)	 	Upon the occurrence of an Event of Default, the other party (the
“Non-Defaulting Party”) shall have the right to either withhold and/or
suspendpayments or the making or receiving of deliveries, or terminate
the Agreement, in addition to any and all other remedies available
under the Agreement.

3

 

	 	(C)	 	Each party reserves to itself all rights, set-offs, counterclaims, and
other defenses that it is or may be entitled to arising from or out of
the Agreement.

	 
	 	(D)	 	In the event that the Non-Defaulting Party terminates this Agreement
pursuant to this Article, the Non-Defaulting Party shall have the
right to designate an early termination date (“Early Termination
Date”) as any date on or after the event of default under this
Article. Upon the Early Termination Date, the Non-Defaulting Party
shall have the right to liquidate all Transactions under this
Agreement (including any portion of a Transaction not yet fully
delivered) then outstanding by:

	 	(i)	 	Closing out each Transaction being liquidated at its Market Value, as
defined below, so that each such Transaction is canceled and a
settlement payment in an amount equal to the difference between such
Market Value and the Contract Value, as defined below, of such
Transaction shall be due to the Buyer under the Transaction if such
Market Value exceeds the Contract Value and to the Seller if the
opposite is the case, in each case discounted, where appropriate, to
present value in a commercially reasonable manner as of the Early
Termination Date; and

	 
	 	(ii)	 	Setting off or aggregating, as appropriate, any or all settlement
payments (discounted as appropriate) and (at the election of the
non-defaulting party) any or all other amounts owing between the
parties under this Agreement, as well as under any other agreement
between the parties, so that all such amounts are aggregated and/or
netted to a single liquidated amount payable by one party to the
other. The net amount due any such liquidation shall be paid by the
close of business on the Business Day following the Early Termination
Date.

	 	For these purposes, “Contract Value” means the amount of the Gas remaining to be
delivered or purchased under a Transaction multiplied by the Commodity Charge, and
“Market Value” means the amount of Gas remaining to be delivered or purchased under
a Transaction multiplied by the Replacement Price. For purposes of this Article,
“Replacement Price” means the relevant market price for the remaining term either
quoted by a bona fide third party offer or which are reasonably expected to be
available in the market under a replacement contract for such Transaction. The
Non-Defaulting Party may consider, among other valuations any or all of the
settlement prices of NYMEX Gas futures contracts, quotations from leading dealers
in gas swap contracts and other bona fide third party offers.

4

 

	 	(E)	 	Except as provided in this Agreement, neither party shall be
responsible for punitive, incidental, special or consequential
damages.

	 
	 	(F)	 	The parties agree that a Transaction under this Article shall
constitute a “forward contract” within the meaning of the United
States Bankruptcy Code.

	 
	 	(G)	 	The Non-Defaulting Party shall give notice that liquidation pursuant
to this Article has occurred to the defaulting party no later than the
Business Day following such liquidation, provided that failure to give
such notice shall not affect the validity or enforceability of the
liquidation or give rise to any claim by the defaulting party against
the non-defaulting party.

	 
	 	(H)	 	In addition to all other amounts payable hereunder, the Defaulting
Party shall reimburse the Non-Defaulting Party, on demand, for
reasonable out-of-pocket expenses, including, without limitation,
attorneys’ fees and expenses incurred by the other party during the
occurrence and continuation of an Event of Default in connection with
the enforcement or the preservation of its rights in respect hereof,
together with interest on any unpaid amount at the rate specified in
Section 6 of this Agreement.

2.4 Business Day. The following shall be added as a new Section 17;

“17. “BUSINESS DAY” shall mean any day except Saturday, Sunday or Federal Reserve Bank
holidays.”

2.5 Payment Netting. The following shall be added as a new Section 18:

“18. PAYMENT NETTING. If on any date any amounts would otherwise be payable in the same
currency in respect of any Transactions by each Party to the other, then, on such date,
each Party’s obligation to make payment of any such amount will be automatically satisfied
and discharged and, if the aggregate amount that would otherwise have been payable by one
party exceeds the aggregate amount that would otherwise have been payable by the other
party, replaced by an obligation upon the party by whom the larger aggregate amount would
have been payable to pay to the other party the excess of the larger aggregate amount over
the smaller aggregate amount.”

III. AMENDMENTS TO THE 2003 AMENDMENT

3.1 Sections 2 and 3, Exhibit A and Annexes 1 and 2 thereto shall be deleted in their
entirety.

IV. MISCELLANEOUS

4.1 Warranties. Each Party represents and warrants to the others that it has the
corporate authority to execute, deliver and perform this Amendment and has taken all actions
necessary to secure all necessary approvals required to be secured in connection therewith. The
execution, delivery and performance of this Amendment and the Base Contract have been duly
authorized by all necessary corporate action.

5

 

4.2 No Third Party Benefit. Nothing contained in this Amendment, express or implied,
is intended to or shall be construed to confer upon or give any person, firm, or corporation, other
than the Parties and their respective permitted successors and assigns, any remedy or claim under,
or by reason of, this Amendment, or any term, covenant or condition hereof. All conditions,
promises and agreements contained in this Amendment shall be for the sole and exclusive benefit of
the Parties and their respective permitted successors and assigns.

4.3 Entire Agreement. This Amendment and the Base Contract set forth the entire
understanding and agreement between the Parties as to matters covered herein and therein and
supersedes any other prior understanding, agreement or statement (written or oral) between the
Parties as to matters covered herein and therein.

4.4 Headings. The headings contained in this Amendment are for convenience of
reference only and shall not affect, in any way, the meaning or interpretation of this Amendment.

4.5 Amendments; Waivers. To be binding, any amendment of this Amendment must be
effected by an instrument in writing signed by all of the Parties. Rights hereunder shall not be
waived, except pursuant to a writing signed by the Party against which enforcement of the waiver is
sought.

4.6 Expenses of Negotiation. All costs and expenses incurred in connection with this
Amendment are to be borne by the Party incurring such costs.

4.7 Severability. It is the intention of the Parties hereto that whenever possible,
each provision of the Base Contract and this Amendment will be interpreted in such manner as to be
effective and valid under applicable law, but that if any provision of the Base Contract or this
Amendment, as the case may be, is held to be invalid, illegal or unenforceable in any respect under
any applicable law, such invalidity, illegality or unenforceability will not affect any other
provision, and the Base Contract and this Amendment, as the case may be, will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision
had never been contained herein and/or therein, as the case may be.

4.8 Counterparts: and Facsimile Signatures. This Amendment may be executed, including
by facsimile signature, in one or more counterparts, each of which when so executed shall be deemed
to be an original and all of which together shall constitute one and the same instrument.

4.9 Governing Law. The interpretation and performance of this Amendment shall be
governed by the laws of the jurisdiction indicated in the Base Contract.

6

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this instrument or have caused this
instrument to be duly executed on their behalf, on the Effective Date.

	 	 	 	 	 
	HESS CORPORATION

	 	 	 	ATLAS AMERICA, INC.
	 
	 	 	 	 
	By: /s/ Jonathan C. Stein

	 	 	 	By: /s/ Matthew A. Jones
	 

	 	 	 	 
	Name: Jonathan C. Stein

	 	 	 	Name: Matthew A. Jones
	Title: Vice President, Chief Risk Officer

	 	 
	 	Title: Chief Financial Officer
	 
	 	 	 	 
	VIKING RESOURCES, LLC

	 	 	 	ATLAS RESOURCES, LLC
	 
	 	 	 	 
	By: /s/ Matthew A. Jones

	 	 	 	By: /s/ Matthew A. Jones
	 

	 	 	 	 
	Name: Matthew A. Jones

	 	 	 	Name: Matthew A. Jones
	Title: Chief Financial Officer

	 	 	 	Title: Chief Financial Officer
	 
	 	 	 	 
	RESOURCE ENERGY, LLC
	 	 	 	 
	 
	 	 	 	 
	By: /s/ Matthew A. Jones
	 	 	 	 
	 

Name: Matthew A. Jones

	 	 	 	 
	Title: Chief Financial Officer
	 	 	 	 

7

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