Document:

exv10w4

Table of Contents

Execution Copy

 

CONTRIBUTION AND CONVEYANCE AGREEMENT

By and Among,

ATLAS AMERICA, INC.,

AIC, LLC,

VIKING RESOURCES LLC,

ATLAS PIPELINE HOLDINGS GP, LLC

and

ATLAS PIPELINE HOLDINGS, L.P.

Dated as of July 26, 2006

 

 

Table of Contents

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I

DEFINITIONS
	 
	 	 	 	 
	ARTICLE II

CONTRIBUTION AND DISTRIBUTION TRANSACTIONS

	 
	 	 	 	 
	Section 2.1 Distribution of Interests in MLP GP
	 	 	3	 
	Section 2.2 Contribution of Interests in MLP GP by MLP GP Owners to Atlas Holdings
	 	 	3	 
	Section 2.3 Public Cash Contribution
	 	 	3	 
	Section 2.4 Payment of Transaction Expenses by Atlas Holdings
	 	 	3	 
	Section 2.5 Issuance of New Certificates
	 	 	3	 
	Section 2.6 Certificate Legends
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III

ADDITIONAL TRANSACTIONS

	 
	 	 	 	 
	Section 3.1 Over-Allotment Option
	 	 	4	 
	Section 3.2 Redemption of Common Units by Atlas Holdings
	 	 	4	 
	 
	 	 	 	 
	ARTICLE IV

REPRESENTATIONS AND WARRANTIES

	 
	 	 	 	 
	Section 4.1 Representations and Warranties of Atlas America
	 	 	4	 
	 
	 	 	 	 
	ARTICLE V

FURTHER ASSURANCES

	 
	 	 	 	 
	ARTICLE VI

EFFECTIVE TIME

	 
	 	 	 	 
	ARTICLE VII

INDEMNIFICATION

	 
	 	 	 	 
	Section 7.1 Indemnification by Atlas America
	 	 	6	 
	Section 7.2 Indemnification by Atlas Holdings
	 	 	6	 
	Section 7.3 Indemnification Procedure
	 	 	6	 
	 
	 	 	 	 
	ARTICLE VIII

MISCELLANEOUS

	 
	 	 	 	 
	Section 8.1 Order of Completion of Transactions
	 	 	8	 
	Section 8.2 Costs
	 	 	8	 
	Section 8.3 Headings; References; Interpretation
	 	 	8	 
	Section 8.4 Successors and Assigns
	 	 	8	 
	Section 8.5 No Third Party Rights
	 	 	8	 

i

Table of Contents

	 	 	 	 	 
	Section 8.6 Counterparts
	 	 	8	 
	Section 8.7 Governing Law
	 	 	9	 
	Section 8.8 Severability
	 	 	9	 
	Section 8.9 Amendment or Modification
	 	 	9	 
	Section 8.10 Integration
	 	 	9	 
	Section 8.11 Deed; Bill of Sale; Assignment
	 	 	9	 

ii

Table of Contents

CONTRIBUTION AND CONVEYANCE AGREEMENT

     This Contribution and Conveyance Agreement, dated as of July 26, 2006 (this “Contribution
Agreement”), is by and among Atlas Pipeline Holdings, L.P., a Delaware limited partnership
(“Atlas Holdings”), Atlas Pipeline Holdings GP, LLC, a Delaware limited liability company
(“Holdings GP”), Atlas America, Inc., a Delaware corporation (“Atlas America”),
AIC, LLC, a Delaware limited liability company (“AIC”) and Viking Resources LLC, a Delaware
limited liability company (“Viking”). The above-named entities are sometimes referred to
in this Contribution Agreement each as a “Party” and collectively as the “Parties.”
Capitalized terms used herein shall have the meanings assigned to such terms in Section 1.1.

W I T N E S S E T H:

     WHEREAS, AIC, Viking and Atlas America (each an “MLP GP Owner” and, the owners
together known as the “MLP GP Owners”) currently own a 39.36%, 23.56% and 37.08% interest,
respectively, in Atlas Pipeline Partners GP, LLC, a Delaware limited liability company and the
general partner of the MLP (“MLP GP”);

     WHEREAS, Holdings GP and Atlas America have formed Atlas Holdings pursuant to the Delaware
Revised Uniform Limited Partnership Act (the “Delaware LP Act”) for the purpose of
facilitating the Offering and, with respect to the MLP GP Owners, transferring the economic
benefits of their existing ownership interests in the MLP GP to Atlas Holdings in order to promote
the long-term growth opportunities of the Parties;

     WHEREAS, in order to accomplish the objectives and purposes in the preceding recital, each of
the following actions has been taken prior to the date hereof:

	 	1.	 	Atlas America formed Holdings GP under the terms of the Delaware Limited
Liability Company Act (the “Delaware LLC Act”) and contributed $1,000 to
Holdings GP in exchange for all of the member interests in Holdings GP.
	 
	 	2.	 	Holdings GP and Atlas America formed Atlas Holdings under the terms of the
Delaware LP Act and Holdings GP contributed $.01 for a .001% general partner interest
and Atlas America contributed $999.99 to Atlas Holdings in exchange for a 99.999%
limited partner interest.

     WHEREAS, concurrently with the consummation of the transactions contemplated hereby, each of
the following shall occur:

	 	3.	 	AIC and Viking will distribute their interests in the MLP GP to Atlas America;
	 
	 	4.	 	Atlas America will then contribute its 100% interest in the MLP GP to Atlas
Holdings in exchange for 17,500,000 units (“Common Units”) representing limited
partner interests aggregating an 82.9% limited partner interest in Atlas Holdings, and
the right to receive the net proceeds of the public offering, in part as a
reimbursement of certain capital expenditures incurred with respect to the MLP GP.

 

Table of Contents

	 	5.	 	In connection with Atlas Holdings’ Offering, the public, through the
Underwriters, will contribute $82,800,000 in cash to Atlas Holdings less the
Underwriters’ discounts and commissions of $5,589,000 (the “Spread”) and a
structuring fee of $207,000 in exchange for 3,600,000 Common Units representing a 17.1%
limited partner interest in Atlas Holdings.
	 
	 	6.	 	Atlas Holdings will pay transaction expenses pursuant to the transactions
contemplated by this agreement in the amount of approximately $1,200,000 (exclusive of
the Underwriters’ Spread and the structuring fee), and will distribute the balance of
the proceeds from the Offering to Atlas America.

     NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and
agreements herein contained, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     The terms set forth below in this Article I shall have the meanings ascribed to them below or
in the part of this Contribution Agreement referred to below:

     “Business Day” means any day other than a Saturday, a Sunday or any other day when
banks are not open for business generally in the State of Delaware.

     “Commission” means the U.S. Securities and Exchange Commission.

     “Common Units” means the common units of Atlas Holdings, representing limited partner
interests.

     “Closing” means the closing of the transactions contemplated pursuant to the
Contribution Agreement.

     “Delaware LLC Act” means the Limited Liability Company Act of the State of Delaware,
as amended and any successor to such act.

     “Delaware LP Act” means the Delaware Revised Uniform Limited Partnership Act, as
amended and any successor to such act.

     “Effective Time” means immediately prior to the closing under the Underwriting
Agreement.

     “Offering” means the initial public offering of the Common Units contemplated by the
Registration Statement.

     “Person” means an individual, corporation, partnership (limited or general), limited
liability company, trust, joint stock company, Governmental Authority, unincorporated association
or other legal entity.

     “Securities Act” means the Securities Act of 1933, as amended.

2

Table of Contents

     “Underwriters” means those of the underwriting syndicate as referenced in the
Underwriting Agreement between Lehman Brothers Inc., as representative of the Underwriters, Atlas
Holdings and Holdings GP, dated as of July 26, 2006.

ARTICLE II

CONTRIBUTION AND DISTRIBUTION TRANSACTIONS

     Section 2.1 Distribution of Interests in MLP GP. AIC and Viking hereby distribute,
grant, bargain, assign, transfer, set over and deliver to Atlas America, its successor and assigns,
for its and their own use forever, a 39.36% and 23.56% member interest in the MLP GP, respectively,
and Atlas America hereby accepts such member interest in the MLP GP.

     Section 2.2 Contribution of Interests in MLP GP by Atlas America to Atlas Holdings.
Atlas America hereby grants, contributes, bargains, assigns, transfers, sets over and delivers to
Atlas Holdings, its successor and assigns, for its and their own use forever, a 100% member
interest in the MLP GP (0.001% on behalf of Holdings GP) (the “Transferred Assets”) in exchange
for (a) 17,500,000 units representing limited partner interests with an aggregate 82.9% interest in
Atlas Holdings and (b) the right to receive the net proceeds of the Offering, in part as a
reimbursement of certain capital expenditures made with respect to MLP GP.

     Section 2.3 Public Cash Contribution. The Parties acknowledge a capital contribution
by the public through the Underwriters to Atlas Holdings of $82,800,000 in cash, ($77,211,000 after
the Underwriters’ Spread of $5,589,000 and $77,004,000 after the payment of the structuring fee of
$207,000) in exchange for 3,600,000 Common Units representing a 17.1% interest in Atlas Holdings.

     Section 2.4 Payment of Transaction Expenses by Atlas Holdings. The Parties
acknowledge (a) the payment by Atlas Holdings, in connection with the transactions contemplated
hereby, of estimated transaction expenses in the amount of $1,200,000 (exclusive of the
Underwriters’ Spread and the structuring fee) and (b) the distribution by Atlas Holdings of its
remaining cash of approximately $75,804,000 to Atlas America, in part as a reimbursement of certain
capital expenditures incurred with respect to the MLP GP.

     Section 2.5 Issuance of New Certificates. At the Closing, Atlas Holdings shall issue to
Atlas America a certificate or certificates, which may be held in book entry form, representing the
number of Common Units to be issued to Atlas America pursuant to Section 2.2. Each such
certificate shall be registered in the name of the Person or Persons specified by the recipient
thereof to Atlas Holdings in writing at least two Business Days prior to the Closing.

     Section 2.6 Certificate Legends. The certificates evidencing Common Units delivered
pursuant to Section 2.2 shall bear a legend substantially in the form set forth below and
containing such other information as Atlas Holdings may deem necessary or appropriate:

     The securities represented hereby have not been registered
under the securities act of 1933, as amended, or any state
securities laws, and neither the securities nor any interest therein
may be offered, sold, transferred, pledged or otherwise disposed of
except 

3

Table of Contents

pursuant to an effective registration statement under such
act and such laws or pursuant to an exemption therefrom which, in
the opinion of counsel for the holder, which counsel and opinion are
reasonably satisfactory to counsel for this limited partnership, is
available.

ARTICLE III

ADDITIONAL TRANSACTIONS

     Section 3.1 Over-Allotment Option. The Parties acknowledge that in the event the
option to purchase additional Common Units is exercised in whole or in part by the Underwriters
(the “Option”), the public, through the Underwriters, will contribute additional cash to
Atlas Holdings in exchange for up to an additional 540,000 Common Units.

     Section 3.2 Redemption of Common Units by Atlas Holdings. The Parties acknowledge, in
the event that the Option is exercised in whole or in part by the Underwriters, Atlas Holdings will
use the net proceeds from the issuance of such additional Common Units to redeem a number of Common
Units from Atlas America equal to the number of Common Units issued pursuant to the exercise of the
Option at a redemption price equal to the same net price received by Atlas Holdings from the
Underwriters.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     Section 4.1 Representations and Warranties of Atlas America. Atlas America hereby
represents and warrants to Atlas Holdings as follows as of the date of this Contribution Agreement:

     (a) Atlas America has been duly incorporated and is validly existing in good standing
under the laws of the State of Delaware, with all corporate power and authority necessary to
own or hold its properties and conduct the businesses in which it is engaged and, to execute
and deliver this Contribution Agreement and to consummate the transactions contemplated
hereby.

     (b) As of the date of this Contribution Agreement, following the consummation of the
transaction described in Section 2.1, Atlas America owns 100% of the issued and outstanding
member interests in the MLP GP; such member interests have been duly authorized and validly
issued in accordance with the limited liability company agreement of the MLP GP, as amended
and/or restated on or prior to the date on which the Offering is consummated (the “Closing
Date”) or any settlement date, and Atlas America owns such member interests free and clear
of all liens, encumbrances, security interests, equities, charges or claims.

     (c) All corporate action required to be taken by Atlas America or any of its
securityholders for the authorization, execution and delivery of this Agreement and the
consummation of the transactions contemplated by this Agreement has been validly taken.

4

Table of Contents

     (d) None of the (i) the execution, delivery and performance of this Agreement by Atlas
America, or (ii) consummation of the transactions contemplated hereby (A) conflicts or will
conflict with or constitutes or will constitute a violation of its certificate of
incorporation or bylaws, (B) conflicts or will conflict with or constitutes or will
constitute a breach or violation of, or a default (or an event that, with notice or lapse of
time or both, would constitute such a default) under, any indenture, mortgage, deed of
trust, loan agreement, lease or other agreement or instrument to which Atlas America is a
party or by which Atlas America or any of its properties may be bound, (C) violates or will
violate any statute, law or regulation or any order, judgment, decree or injunction of any
Governmental Authority or body having jurisdiction over Atlas America, or any of its
properties or assets, or (D) results or will result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of Atlas America, which conflicts,
breaches, violations, defaults or liens, in the case of clauses (B) or (D), would,
individually or in the aggregate, have a material adverse effect on (i) the transactions
contemplated by this Agreement or (ii) the ownership and use by Atlas Holdings of the
Transferred Assets at or after the Effective Time (a “Material Adverse Effect”).
“Governmental Authority” means (i) the United States of America, (ii) any state, province,
county, municipality or other governmental subdivision within the United States of America,
and (iii) any court or any governmental department, commission, board, bureau, agency or
other instrumentality of the United States of America, or of any state, province, county,
municipality or other governmental subdivision within the United States of America.

     (e) No permit, consent, approval, authorization, order, registration, filing or
qualification (a “consent”) of or with any Governmental Authority or body having
jurisdiction over Atlas America or any of its properties is required in connection with (i)
the execution, delivery and performance of this Agreement by Atlas America, or (ii) the
consummation by Atlas America of the transactions contemplated by this Agreement, except for
such consents that have been obtained.

ARTICLE V

FURTHER ASSURANCES

     From time to time after the Effective Time, and without any further consideration, the Parties
agree to execute, acknowledge and deliver all such additional deeds, assignments, bills of sale,
conveyances, instruments, notices, releases, acquittances and other documents, and will do all such
other acts and things, all in accordance with applicable law, as may be necessary or appropriate
(a) more fully to assure that the applicable Parties own all of the properties, rights, titles,
interests, estates, remedies, powers and privileges granted by this Contribution Agreement, or
which are intended to be so granted, or (b) more fully and effectively to vest in the applicable
Parties and their respective successors and assigns beneficial and record title to the interests
contributed and assigned by this Contribution Agreement or intended so to be and to more fully and
effectively carry out the purposes and intent of this Contribution Agreement.

5

Table of Contents

ARTICLE VI

EFFECTIVE TIME

     Notwithstanding anything contained in this Contribution Agreement to the contrary, none of the
provisions of Article II or Article III of this Contribution Agreement shall be operative or have
any effect until the Effective Time, at which time all the provisions of Article II and Article III
of this Contribution Agreement shall be effective and operative in accordance with Article VIII,
without further action by any party hereto.

ARTICLE VII

INDEMNIFICATION

     Section 7.1 Indemnification by Atlas America. Subject to the other provisions of this
Article VII, Atlas America shall indemnify, defend and hold harmless Atlas Holdings from and
against any losses, damages, liabilities, claims, demands, causes of action, judgments,
settlements, fines, penalties, costs and expenses (including, without limitation, court costs and
reasonable attorney’s fees and expert fees) of any and every kind and character (“Losses”), insofar
as such Losses arise out of or are based upon:

     (a) the failure of Atlas America to be the owner of the Transferred Assets as is
necessary for Atlas Holdings to continue to own the Transferred Assets and to derive the
benefits therefrom in accordance with the terms of such equity interests;

     (b) the failure of Atlas America to have at the Effective Time on the Closing Date any
consent or approval of a Governmental Authority necessary to allow transfer by Atlas America
of the Transferred Assets; and

     (c) all federal, state and local income tax liabilities attributable to the Transferred
Assets allocable prior to the Effective Time on the Closing Date, including any such income
tax liabilities of Atlas America that may result from the consummation of the transactions
contemplated by this Contribution Agreement.

     Section 7.2 Indemnification by Atlas Holdings. Atlas Holdings shall indemnify, defend
and hold harmless Atlas America from and against all Losses suffered or incurred by Atlas America
arising out of or relating to the Transferred Assets, except with respect to matters for which
Atlas Holdings is entitled to indemnification therefor under Section 7.1

     Section 7.3 Indemnification Procedure.

     (a) As used in this Section 7.3, the term “Indemnifying Party” refers to Atlas America,
in the case of any indemnification obligation arising under Section 7.1, and to Atlas
Holdings, in the case of any indemnification obligation arising under Section 7.2; and the
term “Indemnified Party” refers to Atlas Holdings, in the case of any indemnification
obligation arising under Section 7.1, and to Atlas America, in the case of any
indemnification obligation arising under Section 7.2.

     (b) The Indemnified Party agrees that within a reasonable period of time after it
becomes aware of facts giving rise to a claim for indemnification under this Article VII,

6

Table of Contents

it will provide notice thereof in writing to the Indemnifying Party, specifying the
nature of and specific basis for such claim.

     (c) The Indemnifying Party shall have the right to control, at its sole cost and
expense, all aspects of the defense of (and any counterclaims with respect to) any claims
brought against the Indemnified Party that are covered by the indemnification under this
Article VII, including, without limitation, the selection of counsel, determination of
whether to appeal any decision of any Governmental Authority and the settling of any such
matter or any issues relating thereto; provided, however, that no such settlement shall be
entered into without the consent of the Indemnified Party (which consent shall not be
unreasonably withheld) unless it includes a full release of the Indemnified Party from such
matter or issues, as the case may be.

     (d) The Indemnified Party agrees to cooperate fully with the Indemnifying Party, with
respect to (i) its pursuit of insurance coverage or recoveries with respect to the claims
covered by the indemnification under this Article VII and (ii) all aspects of the defense of
any claims covered by the indemnification under this Article VII, including, without
limitation, the prompt furnishing to the Indemnifying Party of any correspondence or other
notice relating thereto that the Indemnified Party may receive, permitting the name of the
Indemnified Party to be utilized in connection with such defense, the making available to
the Indemnifying Party of any files, records or other information of the Indemnified Party
that the Indemnifying Party considers relevant to such defense and the making available to
the Indemnifying Party of any employees of the Indemnified Party; provided, however, that in
connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize the
impact thereof on the operations of the Indemnified Party and further agrees to maintain the
confidentiality of all files, records, and other information furnished by the Indemnified
Party pursuant to this Section 7.3. In no event shall the obligation of the Indemnified
Party to cooperate with the Indemnifying Party as set forth in the immediately preceding
sentence be construed as imposing upon the Indemnified Party an obligation to hire and pay
for counsel in connection with the defense of any claims covered by the indemnification set
forth in this Article VII provided, however, that the Indemnified Party may, at its own
option, cost and expense, hire and pay for counsel in connection with any such defense. The
Indemnifying Party agrees to keep any such counsel hired by the Indemnified Party informed
as to the status of any such defense, but the Indemnifying Party shall have the right to
retain sole control over such defense.

     (e) The date on which written notification of a claim for indemnification is received
by the Indemnifying Party shall determine whether such claim is timely made within the
limitations specified in Section 7.1. No claim for indemnification pursuant to Section
7.1(a) shall be brought or made unless, prior to thirty (30) days after the actual knowledge
by the Indemnified Party of the Losses set forth in Section 7.1(a), the Indemnified Party
shall have delivered to the Indemnifying Party a good faith written notice to the effect
that the Indemnified Party has incurred Losses entitled to be indemnified against under
Section 7.1(a), which notice specifies in reasonable detail the amount of such Losses and
the nature and basis of such claim.

7

Table of Contents

ARTICLE VIII

MISCELLANEOUS

     Section 8.1 Order of Completion of Transactions. The transactions provided for in
Article II and Article III of this Contribution Agreement shall be completed immediately following
the Effective Time in the following order: first, the transactions provided for in Article II shall
be completed in the order set forth therein; and second, following the completion of the
transactions as provided in Article II, the transactions, if they occur, provided for in Article
III shall be completed.

     Section 8.2 Costs. Atlas Holdings shall pay all expenses, fees and costs, including
but not limited to, all sales, use and similar taxes arising out of the contributions, conveyances
and deliveries to be made hereunder and shall pay all documentary, filing, recording, transfer,
deed, and conveyance taxes and fees required in connection therewith. In addition, Atlas Holdings
shall be responsible for all costs, liabilities and expenses (including court costs and reasonable
attorneys’ fees) incurred in connection with the implementation of any conveyance or delivery
pursuant to Article VI.

     Section 8.3 Headings; References; Interpretation. All Article and Section headings in
this Contribution Agreement are for convenience only and shall not be deemed to control or affect
the meaning or construction of any of the provisions hereof. The words “hereof,” “herein” and
“hereunder” and words of similar import, when used in this Contribution Agreement, shall refer to
this Contribution Agreement as a whole, including, without limitation, all Schedules and Exhibits
attached hereto, and not to any particular provision of this Contribution Agreement. All personal
pronouns used in this Contribution Agreement, whether used in the masculine, feminine or neuter
gender, shall include all other genders, and the singular shall include the plural and vice versa.
The use herein of the word “including” following any general statement, term or matter shall not be
construed to limit such statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not non-limiting
language (such as “without limitation”, “but not limited to”, or words of similar import) is used
with reference thereto, but rather shall be deemed to refer to all other items or matters that
could reasonably fall within the broadest possible scope of such general statement, term or matter.

     Section 8.4 Successors and Assigns. The Contribution Agreement shall be binding upon
and inure to the benefit of the Parties and their respective successors and assigns.

     Section 8.5 No Third Party Rights. The provisions of this Contribution Agreement are
intended to bind the Parties as to each other and are not intended to and do not create rights in
any other person or confer upon any other person any benefits, rights or remedies and no person is
or is intended to be a third party beneficiary of any of the provisions of this Contribution
Agreement.

     Section 8.6 Counterparts. This Contribution Agreement may be executed in any number
of counterparts, all of which together shall constitute one agreement binding on the parties
hereto.

8

Table of Contents

     Section 8.7 Governing Law. This Contribution Agreement shall be governed by, and
construed in accordance with, the laws of the State of Delaware applicable to contracts made and to
be performed wholly within such state without giving effect to conflict of law principles thereof.

     Section 8.8 Severability. If any of the provisions of this Contribution Agreement are
held by any court of competent jurisdiction to contravene, or to be invalid under, the laws of any
political body having jurisdiction over the subject matter hereof, such contravention or invalidity
shall not invalidate the entire Contribution Agreement. Instead, this Contribution Agreement shall
be construed as if it did not contain the particular provision or provisions held to be invalid and
an equitable adjustment shall be made and necessary provision added so as to give effect to the
intention of the Parties as expressed in this Contribution Agreement at the time of execution of
this Contribution Agreement.

     Section 8.9 Amendment or Modification. This Contribution Agreement may be amended or
modified from time to time only by the written agreement of all the Parties. Each such instrument
shall be reduced to writing and shall be designated on its face as an Amendment to this
Contribution Agreement.

     Section 8.10 Integration. This Contribution Agreement and the instruments referenced
herein supersede all previous understandings or agreements among the Parties, whether oral or
written, with respect to their subject matter. This document and such instruments contain the
entire understanding of the Parties with respect to the subject matter hereof and thereof. No
understanding, representation, promise or agreement, whether oral or written, is intended to be or
shall be included in or form part of this Contribution Agreement unless it is contained in a
written amendment hereto executed by the parties hereto after the date of this Contribution
Agreement.

     Section 8.11 Deed; Bill of Sale; Assignment. To the extent required and permitted by
applicable law, this Contribution Agreement shall also constitute a “deed,” “bill of sale” or
“assignment” of the assets and interests referenced herein.

[signature pages follow]

9

Table of Contents

     IN WITNESS WHEREOF, the parties to this Contribution Agreement have caused it to be duly
executed as of the date first above written.

	 	 	 	 	 	 	 
	 	 	ATLAS AMERICA, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	AIC, LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	VIKING RESOURCES LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	ATLAS PIPELINE HOLDINGS GP, LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Atlas America	 	 
	 

	 	 	 	its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	ATLAS PIPELINE HOLDINGS, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Atlas Pipeline Holdings GP, LLC	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Atlas America	 	 
	 

	 	 	 	its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:exv10w7

 

Execution

REVOLVING CREDIT AGREEMENT

Dated as of July 26, 2006

among

ATLAS PIPELINE HOLDINGS, L.P., 
as
Borrower

ATLAS PIPELINE PARTNERS GP, LLC, 
as
Guarantor

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent and Issuing Bank

and

THE LENDERS SIGNATORY HERETO

BANK OF AMERICA, N.A.,

Syndication Agent

CITIBANK TEXAS, N.A.,

KEYBANK NATIONAL ASSOCIATION,

and WELLS FARGO BANK, N.A.,

Co-Documentation Agents

WACHOVIA CAPITAL MARKETS, LLC,

Sole Lead Arranger

WACHOVIA CAPITAL MARKETS, LLC,

Sole Book Runner

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I Definitions and Accounting Matters
	 	 	1	 
	 
	 	 	 	 
	Section 1.01 Terms Defined Above
	 	 	1	 
	Section 1.02 Certain Defined Terms
	 	 	1	 
	Section 1.03 Accounting Terms and Determinations
	 	 	15	 
	 
	 	 	 	 
	ARTICLE II Commitments
	 	 	15	 
	 
	 	 	 	 
	Section 2.01 Loans and Letters of Credit
	 	 	15	 
	Section 2.02 Borrowings, Continuations and Conversions, Letters of Credit
	 	 	16	 
	Section 2.03 Changes of Commitments
	 	 	18	 
	Section 2.04 Fees
	 	 	18	 
	Section 2.05 Several Obligations
	 	 	19	 
	Section 2.06 Notes
	 	 	19	 
	Section 2.07 Prepayments
	 	 	19	 
	Section 2.08 Assumption of Risks
	 	 	19	 
	Section 2.09 Obligation to Reimburse and to Prepay
	 	 	20	 
	Section 2.10 Lending Offices
	 	 	21	 
	 
	 	 	 	 
	ARTICLE III Payments of Principal and Interest
	 	 	22	 
	 
	 	 	 	 
	Section 3.01 Repayment of Loans
	 	 	22	 
	Section 3.02 Interest
	 	 	22	 
	 
	 	 	 	 
	ARTICLE IV Payments; Pro Rata Treatment; Computations; Etc
	 	 	23	 
	 
	 	 	 	 
	Section 4.01 Payments
	 	 	23	 
	Section 4.02 Pro Rata Treatment
	 	 	23	 
	Section 4.03 Computations
	 	 	23	 
	Section 4.04 Non-receipt of Funds by the Administrative Agent
	 	 	23	 
	Section 4.05 Set-off, Sharing of Payments, Etc
	 	 	24	 
	Section 4.06 Taxes
	 	 	25	 
	 
	 	 	 	 
	ARTICLE V Capital Adequacy
	 	 	27	 
	 
	 	 	 	 
	Section 5.01 Additional Costs
	 	 	27	 
	Section 5.02 Limitation on LIBOR Loans
	 	 	28	 
	Section 5.03 Illegality
	 	 	29	 
	Section 5.04 Base Rate Loans Pursuant to Sections 5.01, 5.02 and 5.03
	 	 	29	 
	Section 5.05 Compensation
	 	 	29	 
	 
	 	 	 	 
	ARTICLE VI Conditions Precedent
	 	 	30	 
	 
	 	 	 	 
	Section 6.01 Initial Funding
	 	 	30	 
	Section 6.02 Initial and Subsequent Loans and Letters of Credit
	 	 	31	 
	Section 6.03 Certain Loans and Letters of Credit
	 	 	31	 
	Section 6.04 Conditions Precedent for the Benefit of Lender
	 	 	32	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 6.05 No Waiver
	 	 	32	 
	 
	 	 	 	 
	ARTICLE VII Representations and Warranties
	 	 	32	 
	 
	 	 	 	 
	Section 7.01 Corporate Existence
	 	 	32	 
	Section 7.02 Financial Condition
	 	 	32	 
	Section 7.03 Litigation
	 	 	32	 
	Section 7.04 No Breach
	 	 	33	 
	Section 7.05 Authority
	 	 	33	 
	Section 7.06 Approvals
	 	 	33	 
	Section 7.07 Use of Loans
	 	 	33	 
	Section 7.08 ERISA
	 	 	33	 
	Section 7.09 Taxes
	 	 	34	 
	Section 7.10 Titles, etc.
	 	 	34	 
	Section 7.11 No Material Misstatements
	 	 	35	 
	Section 7.12 Investment Company Act
	 	 	35	 
	Section 7.13 Capitalization of General Partner and Subsidiaries
	 	 	35	 
	Section 7.14 Location of Business and Offices
	 	 	36	 
	Section 7.15 Defaults under Material Agreements
	 	 	36	 
	Section 7.16 Environmental Matters
	 	 	36	 
	Section 7.17 Compliance with Laws
	 	 	37	 
	Section 7.18 Insurance
	 	 	37	 
	Section 7.19 Hedging Agreements
	 	 	37	 
	Section 7.20 Restriction on Liens
	 	 	37	 
	Section 7.21 Material Agreements
	 	 	37	 
	Section 7.22 Relationship of Obligors
	 	 	38	 
	Section 7.23 Solvency
	 	 	38	 
	 
	 	 	 	 
	ARTICLE VIII Affirmative Covenants
	 	 	38	 
	 
	 	 	 	 
	Section 8.01 Reporting Requirements
	 	 	38	 
	Section 8.02 Litigation
	 	 	40	 
	Section 8.03 Maintenance, Etc.
	 	 	40	 
	Section 8.04 Environmental Matters
	 	 	41	 
	Section 8.05 Further Assurances
	 	 	41	 
	Section 8.06 Performance of Obligations
	 	 	41	 
	Section 8.07 Title Curative
	 	 	42	 
	Section 8.08 Additional Collateral
	 	 	42	 
	Section 8.09 Subordination of Intercompany Debt
	 	 	43	 
	Section 8.10 Corporate Identity
	 	 	43	 
	Section 8.11 ERISA Information and Compliance
	 	 	43	 
	Section 8.12 Restricted/Unrestricted Subsidiaries
	 	 	44	 
	Section 8.13 Material Agreements
	 	 	44	 
	Section 8.14 Guaranties
	 	 	44	 
	 
	 	 	 	 
	ARTICLE IX Negative Covenants
	 	 	45	 
	 
	 	 	 	 
	Section 9.01 Debt
	 	 	45	 
	Section 9.02 Liens
	 	 	45	 
	Section 9.03 Investments, Loans and Advances
	 	 	46	 
	Section 9.04 Dividends, Distributions and Redemptions
	 	 	47	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 9.05
	 	Dispositions; Sales and Leasebacks	 	 	47	 
	Section 9.06
	 	Nature of Business	 	 	47	 
	Section 9.07
	 	Hedging Agreements	 	 	47	 
	Section 9.08
	 	Limitation on Leases	 	 	48	 
	Section 9.09
	 	Mergers, Etc.	 	 	48	 
	Section 9.10
	 	Proceeds of Notes and Letters of Credit	 	 	48	 
	Section 9.11
	 	ERISA Compliance	 	 	49	 
	Section 9.12
	 	Sale or Discount of Receivables	 	 	49	 
	Section 9.13
	 	Interest Expense Coverage Ratio	 	 	49	 
	Section 9.14
	 	Combined Leverage Ratio	 	 	49	 
	Section 9.15
	 	Leverage Ratio	 	 	49	 
	Section 9.16
	 	Environmental Matters	 	 	49	 
	Section 9.17
	 	Transactions with Affiliates	 	 	49	 
	Section 9.18
	 	Subsidiaries	 	 	49	 
	Section 9.19
	 	Negative Pledge Agreements	 	 	50	 
	Section 9.20
	 	Amendments to Material Agreements	 	 	50	 
	Section 9.21
	 	Accounting Changes	 	 	50	 
	 
	 	 	 	 	 	 
	ARTICLE X Events of Default; Remedies	 	 	50	 
	 
	 	 	 	 	 	 
	Section 10.01
	 	Events of Default	 	 	50	 
	Section 10.02
	 	Remedies	 	 	52	 
	Section 10.03
	 	Distributions	 	 	52	 
	 
	 	 	 	 	 	 
	ARTICLE XI The Administrative Agent	 	 	53	 
	 
	 	 	 	 	 	 
	Section 11.01
	 	Appointment, Powers and Immunities	 	 	53	 
	Section 11.02
	 	Reliance by Administrative Agent	 	 	53	 
	Section 11.03
	 	Defaults	 	 	54	 
	Section 11.04
	 	Rights as a Lender	 	 	54	 
	Section 11.05
	 	Indemnification	 	 	54	 
	Section 11.06
	 	Non-Reliance on Administrative Agent and other Lenders	 	 	54	 
	Section 11.07
	 	Action by Administrative Agent	 	 	55	 
	Section 11.08
	 	Resignation or Removal of Administrative Agent	 	 	55	 
	Section 11.09
	 	No Other Duties	 	 	55	 
	Section 11.10
	 	Collateral and Guaranty Matters	 	 	56	 
	 
	 	 	 	 	 	 
	ARTICLE XII Miscellaneous	 	 	56	 
	 
	 	 	 	 	 	 
	Section 12.01
	 	Waiver	 	 	56	 
	Section 12.02
	 	Notices	 	 	56	 
	Section 12.03
	 	Payment of Expenses, Indemnities,
etc.	 	 	56	 
	Section 12.04
	 	Amendments, Etc.	 	 	58	 
	Section 12.05
	 	Successors and Assigns	 	 	60	 
	Section 12.06
	 	Assignments and Participations	 	 	60	 
	Section 12.07
	 	Invalidity	 	 	62	 
	Section 12.08
	 	Counterparts	 	 	62	 
	Section 12.09
	 	References, Use of Word “Including”	 	 	62	 
	Section 12.10
	 	Survival	 	 	63	 
	Section 12.11
	 	Captions	 	 	63	 
	Section 12.12
	 	NO ORAL AGREEMENTS	 	 	63	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	Section 12.13 GOVERNING LAW, SUBMISSION TO JURISDICTION
	 	 	63	 
	Section 12.14 USA PATRIOT Act Notice
	 	 	64	 
	Section 12.15 Interest
	 	 	64	 
	Section 12.16 Confidentiality
	 	 	65	 

	 	 	 
	Exhibits	 	 
	 
	 	 
	Exhibit A

	 	Form of Revolver Note
	Exhibit B

	 	Form of Borrowing, Continuation and Conversion Request
	Exhibit C

	 	Form of Compliance Certificate
	Exhibit D

	 	Security Instruments
	Exhibit E

	 	Form of Assignment and Assumption
	Exhibit F

	 	Form of Consent to Assignment
	Exhibit G

	 	Form of Guaranty

	 	 	 
	Schedules	 	 
	 
	 	 
	Schedule 2.01

	 	Initial Maximum Revolver Amounts
	Schedule 6.01

	 	Post-Closing Requirements
	Schedule 7.03

	 	Litigation
	Schedule 7.09

	 	Tax Obligations
	Schedule 7.10

	 	Title
	Schedule 7.13

	 	Subsidiary Interests
	Schedule 7.18

	 	Insurance
	Schedule 7.19

	 	Hedging Agreements
	Schedule 7.21

	 	Material Agreements
	Schedule 9.01

	 	Debt

iv

 

REVOLVING CREDIT AGREEMENT

     THIS REVOLVING CREDIT AGREEMENT dated as of July 26, 2006, among ATLAS PIPELINE HOLDINGS,
L.P., a Delaware limited partnership (the “Borrower”); ATLAS PIPELINE PARTNERS GP, LLC, a Delaware
limited liability company (“APL General Partner”; the Borrower and the APL General Partner are
collectively referred to herein as the “Initial Obligors”); each of the lenders that is a signatory
hereto or which becomes a signatory hereto as provided in Section 12.06 (individually, together
with its successors and assigns, a “Lender,” and collectively, the “Lenders”); WACHOVIA BANK,
NATIONAL ASSOCIATION, as administrative agent for the Lenders (in such capacity, together with its
successors in such capacity, the “Administrative Agent”); WACHOVIA BANK, NATIONAL ASSOCIATION, as
issuing bank (in such capacity, together with its successors in such capacity, the “Issuing Bank”);
and WACHOVIA CAPITAL MARKETS, LLC, as sole lead arranger (in such capacity, together with its
successors in such capacity, the “Sole Lead Arranger”).

     In consideration of the mutual covenants and agreements herein contained and of the loans,
extensions of credit and commitments hereinafter referred to, the parties hereto agree as follows:

ARTICLE I

Definitions and Accounting Matters

     Section 1.01 Terms Defined Above. As used in this Agreement, the terms “Administrative
Agent,” “APL General Partner,” “Borrower,” “Initial Obligors,” “Issuing Bank,” “Lender,” “Lenders,”
and “Sole Lead Arranger” and shall have the meanings indicated above.

     Section 1.02 Certain Defined Terms. As used herein, the following terms shall have the
following meanings (all terms defined in this Article I or in other provisions of this Agreement in
the singular to have equivalent meanings when used in the plural, and vice versa):

     Additional Costs shall have the meaning assigned such term in Section 5.01(a).

     Adjusted LIBOR shall mean, with respect to any LIBOR Loan, a rate per annum (rounded upwards,
if necessary, to the nearest 1/100 of 1%) determined by the Administrative Agent to be equal to the
quotient of (i) LIBOR for such Loan for the Interest Period for such Loan divided by (ii) 1 minus
the Reserve Requirement for such Loan for such Interest Period.

     Administrative Questionnaire shall mean an Administrative Questionnaire in a form supplied by
the Administrative Agent.

     Affected Loans shall have the meaning assigned such term in Section 5.04.

     Affiliate of any Person shall mean (i) any Person directly or indirectly controlled by,
controlling or under common control with such first Person, (ii) any director or officer of such
first Person or of any Person referred to in clause (i) above and (iii) if any Person in clause (i)
above is an individual, any member of the immediate family (including parents, spouse and children)
of such individual and any trust whose principal beneficiary is such individual or one or more
members of such immediate family and any Person who is controlled by any such member or trust. For
purposes of this definition, any Person which owns directly or indirectly 10% or more of the
securities having ordinary voting power for the election of directors or other governing body of a
corporation or 10% or more of the partnership or other ownership interests of any other Person
(other than as a limited partner of such other Person) will be deemed to

 

 

“control” (including, with its correlative meanings, “controlled by” and “under common control
with”) such corporation or other Person.

     Agreement shall mean this Revolving Credit Agreement, as the same may from time to time be
further renewed, extended, amended, restated or supplemented.

     Aggregate Maximum Revolver Amount at any time shall equal the sum of the Maximum Revolver
Amounts of the Lenders (Fifty Million Dollars ($50,000,000)), as the same may be reduced pursuant
to Section 2.03(a).

     Applicable Lending Office shall mean, for each Lender and for each Type of Loan, the lending
office of such Lender (or an Affiliate of such Lender) designated for such Type of Loan on the
signature pages hereof or such other offices of such Lender (or of an Affiliate of such Lender) as
such Lender may from time to time specify to the Administrative Agent and the Borrower as the
office by which its Loans of such Type are to be made and maintained.

     Applicable Margin shall mean with respect to Loans, the applicable per annum percentage set
forth at the appropriate intersection in the table shown below, based on the Leverage Ratio as in
effect from time to time:

	 	 	 	 	 	 	 	 	 
	 	 	Applicable Margin
	 	 	LIBOR	 	 
	 	 	Loans and	 	Base Rate
	Leverage Ratio	 	L/C Fees	 	Loans
	Less than or equal to 1.50 to 1.00
	 	 	2.25	%	 	 	0.75	%
	 
	Greater than 1.50 to 1.00,
but less than or equal to 2.50 to 1.00
	 	 	2.50	%	 	 	1.00	%
	 
	Greater than 2.50 to 1.00
	 	 	2.75	%	 	 	1.25	%

Each change in the Applicable Margin resulting from a change in the Leverage Ratio shall take
effect on the date of delivery by the Borrower to the Administrative Agent of notice thereof
pursuant to Section 8.01(j). However, if the Borrower fails to deliver a compliance certificate
when required pursuant to Section 8.01(j), then the Applicable Margin shall be set at the highest
level until such date as the Borrower delivers such compliance certificate to the Administrative
Agent.

     Approved Fund shall mean any Fund that is administered or managed by (i) a Lender, (ii) an
Affiliate of a Lender or (iii) an entity or an Affiliate of an entity that administers or manages a
Lender.

     Assignment and Assumption shall mean an assignment and assumption entered into by a Lender and
an Eligible Assignee (with the consent of any party whose consent is required by Section 12.06(b)),
and accepted by the Administrative Agent, in substantially the form of Exhibit E or any other form
approved by the Administrative Agent.

     Atlas shall mean Atlas America, Inc., a Delaware corporation.

2

 

     Atlas Direct Subsidiaries shall mean AIC, LLC., a Delaware limited liability company; ATLAS
AMERICA, INC., a Pennsylvania corporation; ATLAS NOBLE, LLC., a Delaware limited liability company;
ATLAS RESOURCES, LLC, a Pennsylvania limited liability company; ATLAS AMERICA MIDCONTINENT, INC., a
Delaware corporation; VIKING RESOURCES, LLC, a Pennsylvania limited liability company; AED
INVESTMENTS, INC., a Delaware corporation; RESOURCE ENERGY, LLC, a Delaware limited liability
company and the General Partner.

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

     Atlas Pipeline Partners Credit Agreement shall mean the Revolving Credit and Term Loan
Agreement dated as of April 14, 2005, as amended through June 29, 2006, among Atlas Pipeline
Partners, certain of its subsidiaries party thereto, each of the lenders party thereto and Wachovia
Bank, National Associates, as administrative agent.

     Availability shall mean, at any time, (i) the Lenders’ aggregate Revolver Commitments, minus
(ii) the sum of (a) the Effective Amount of all outstanding Loans and (b) the Effective Amount of
all LC Exposure.

     Base Rate shall mean, with respect to any Base Rate Loan, for any day, a rate per annum equal
to the higher of (i) the Federal Funds Rate for any such day plus
1/2  of 1% or (ii) the Prime Rate for such day. Each change in any
interest rate provided for herein based upon the Base Rate resulting from a change in the Base Rate
shall take effect at the time of such change in the Base Rate.

     Base Rate Loans shall mean Loans that bear interest at rates based upon the Base Rate.

     Business Day shall mean any day other than a day on which commercial banks are authorized or
required to close in Texas, North Carolina or New York and, where such term is used in the
definition of “Quarterly Date” or if such day relates to a borrowing or continuation of, a payment
or prepayment of principal of or interest on, or a conversion of or into, or the Interest Period
for, a LIBOR Loan or a notice by the Borrower with respect to any such borrowing or continuation,
payment, prepayment, conversion or Interest Period, any day which is also a day on which dealings
in Dollar deposits are carried out in the London interbank market.

     Change in Control shall mean (i) except as permitted by clauses (iii)(c) and (iii)(d) hereof,
any person or group of persons (within the meaning of Subsections 13(d) or 14(a) of the Securities
Exchange Act of 1934, as amended) shall have, at any time subsequent to the date hereof, beneficial
ownership (within the meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission
under said Act) of 25% or more of the equity securities of such Person entitled to vote for members
of the board of directors or equivalent governing body of such Person (and taking into account all
such securities that such Person or group has the right to acquire pursuant to any option right)
(provided however, that the beneficial ownership by Atlas or any Subsidiary thereof of 25% or more
of the limited partnership interests of the Borrower or of the equity securities of General Partner
shall not constitute a Change in Control); (ii) within a period of twelve (12) consecutive calendar
months, individuals who were managing board members of the General Partner on the first day of such
period shall cease to constitute a majority of the managing board members of the General Partner or
individuals who were board members of Atlas on the first day of such period shall cease to
constitute a majority of the board members of Atlas, or (iii) the occurrence of any of the
following:

     (a) the sale, transfer, lease, conveyance or other disposition (other than by way of a
permitted merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of the Borrower and its Wholly Owned Subsidiaries taken as
a

3

 

whole to any “person” (as such term is used in Section 13(d)(3) of the Securities Exchange
Act of 1934, as amended);

     (b) the adoption of a plan relating to the liquidation or dissolution of the Borrower
or the General Partner unless, in the case of the General Partner, the General Partner is
replaced by an affiliate of Atlas acceptable to the Lenders in their reasonable discretion,
such acceptance not to be unreasonably withheld;

     (c) the General Partner ceases to own, directly or indirectly, at least 51% of the
general partner interests of the Borrower, or the General Partner ceases to serve as the
only general partner of the Borrower unless the General Partner is replaced by an affiliate
of Atlas acceptable to the Lenders in their reasonable discretion, such acceptance not to
be unreasonably withheld; or

     (d) Atlas and/or one or more of its directly or indirectly wholly-owned subsidiaries
ceases to own at least 51% of the membership units of the General Partner.

     Closing Date shall mean the date upon which the conditions precedent for initial funding set
forth in Section 6.01 are satisfied.

     Code shall mean the Internal Revenue Code of 1986, as amended from time to time and any
successor statute.

     Collateral shall mean the Property owned by the Obligors and which is subject to the Liens
existing and to exist under the terms of the Security Instruments.

     Commitment shall mean for any Lender, its Revolver Commitment.

     Consent to Assignment shall mean, collectively, each Consent to Assignment substantially in
the form of Exhibit F hereto by and between the Borrower, each counterparty to a Material Agreement
that requires such counterparty’s consent to the pledge or assignment thereof in favor of the
Administrative Agent, and the Administrative Agent.

     Consolidated EBITDA of the Borrower shall mean, for any period of four Fiscal Quarters, the
sum of:

     (a) the product of four (4) times the amount of cash distributions payable with respect to the
last Fiscal Quarter in such period by Atlas Pipeline Partners to the Obligors in respect of the
common partnership units in Atlas Pipeline Partners to the extent actually received on or prior to
the date the financial statements with respect to such Fiscal Quarter referred in the Section 9.14
are required to be delivered by the Borrower; provided that if the Obligors have acquired any
common partnership units in Atlas Pipeline Partners at any time after the first day of such Fiscal
Quarter, the determinations in this clause (a) shall be made giving pro forma effect to such
acquisition as if such acquisition had occurred on the first day of the Fiscal Quarter; plus

     (b) the product of four (4) times the amount of cash distributions payable with respect to the
last Fiscal Quarter in such period by Atlas Pipeline Partners to the Obligors in respect of the
general partnership interests or incentive distribution rights to the extent actually received on
or prior to the date the financial statements with respect to such Fiscal Quarter referred in the
Section 9.14 are required to be delivered by the Borrower; plus

4

 

     (c) Consolidated Net Income of the Borrower and its Consolidated Subsidiaries for such four
Fiscal Quarter period, plus (i) each of the following to the extent deducted in determining such
Consolidated Net Income (A) all Consolidated Interest Expense, (B) all income taxes (including any
franchise taxes to the extent based upon net income), (C) all depreciation and amortization
(including amortization of good will and debt issue costs), and (D) any other non-cash charges or
losses, minus (ii) each of the following (A) all non-cash items of income or gain which were
included in determining such Consolidated Net Income, and (B) any cash payments made during such
period in respect of items described in clause (i)(D) of this clause (c) subsequent to the fiscal
quarter in which the relevant non-cash charges or losses were reflected as a charge in the
statement of Consolidated Net Income; provided that the determinations in this clause (c) shall be
made excluding the Unrestricted Entities. For the avoidance of doubt, the determinations in this
clause (c) shall not include Consolidated Net Income attributable to distributions referred to in
clause (a) or (b) of this definition.

     Consolidated Funded Debt shall mean, for any Person and its Consolidated Subsidiaries, the sum
of the following (without duplication): (i) all obligations of such Person and its Consolidated
Subsidiaries for borrowed money or evidenced by bonds, debentures, notes or other similar
instruments (including principal, interest, fees and charges); (ii) all obligations of such Person
and its Consolidated Subsidiaries (whether contingent or otherwise) in respect of bankers’
acceptances, letters of credit, surety or other bonds and similar instruments; (iii) all
obligations of such Person and its Consolidated Subsidiaries to pay the deferred purchase price of
Property or services (other than for borrowed money); (iv) all obligations under leases which shall
have been, or should have been, in accordance with GAAP, recorded as capital leases in respect of
which such Person and its Consolidated Subsidiaries is liable (whether contingent or otherwise);
(v) obligations to pay for goods or services whether or not such goods or services are actually
received or utilized by such Person and its Consolidated Subsidiaries; (vi) any capital stock of
such Person and its Consolidated Subsidiaries in which such Person has a mandatory obligation to
redeem such stock; and (vii) all obligations of such Person under Hedging Agreements.

     Consolidated Interest Expense shall mean with respect to such Person and its Consolidated
Subsidiaries, for any period, the aggregate cash interest payments made or required to be made for
such Person and its Consolidated Subsidiaries on a consolidated basis for such period; provided,
that (i) Consolidated Interest Expense for the fiscal quarter ending June 30, 2006 shall be
calculated by annualizing the Consolidated Interest Expense for such fiscal quarter, (ii)
Consolidated Interest Expense for the fiscal quarter ending September 30, 2006 shall be calculated
by annualizing the Consolidated Interest Expense for such fiscal quarter and the previous fiscal
quarter, and (iii) Consolidated Interest Expense for the fiscal quarter ending December 31, 2006
shall be calculated by annualizing the Consolidated Interest Expense for such fiscal quarter and
the two (2) previous fiscal quarters.

     Consolidated Net Income shall mean, for any Person and any period, such Person’s and its
Consolidated Subsidiaries’ gross revenues for such period, minus such Person’s and its Consolidated
Subsidiaries’ expenses and other proper charges against income (including taxes on income to the
extent imposed), determined on a Consolidated basis after eliminating earnings or losses
attributable to outstanding minority interests and excluding the net earnings or losses of any
Person, other than a subsidiary of such Person, in which such Person or any of its subsidiaries has
an ownership interest. Consolidated Net Income shall not include (a) any gain or loss from the
sale of assets other than in the ordinary course of business, (b) any extraordinary gains or
losses, or (c) any non-cash gains or losses resulting from mark to market activity as a result of
SFAS 133. Consolidated Net Income of a Person for any period shall include any cash dividends and
distributions actually received during such period from any Person, other than a subsidiary, in
which such Person or any of its subsidiaries has an ownership interest.

5

 

     Consolidated Subsidiaries shall mean each Subsidiary of a Person (whether now existing or
hereafter created or acquired) the financial statements of which shall be (or should have been)
consolidated with the financial statements of such Person in accordance with GAAP, provided,
however, that, unless expressly specified otherwise, references to the Consolidated Subsidiaries of
the Borrower shall not include the Unrestricted Entities.

     Debt shall mean, for any Person the sum of the following (without duplication): (i) all
obligations of such Person for borrowed money or evidenced by bonds, debentures, notes or other
similar instruments (including principal, interest, fees and charges); (ii) all obligations of such
Person (whether contingent or otherwise) in respect of bankers’ acceptances, letters of credit,
surety or other bonds and similar instruments; (iii) all obligations of such Person to pay the
deferred purchase price of Property or services (other than for borrowed money); (iv) all
obligations under leases which shall have been, or should have been, in accordance with GAAP,
recorded as capital leases in respect of which such Person is liable (whether contingent or
otherwise); (v) all obligations under operating leases which require such Person or its Affiliate
to make payments over the term of such lease, including payments at termination, based on the
purchase price or appraisal value of the Property subject to such lease plus a marginal interest
rate, and used primarily as a financing vehicle for, or to monetize, such Property; (vi) all Debt
(as described in the other clauses of this definition) and other obligations of others secured by a
Lien on any asset of such Person, whether or not such Debt is assumed by such Person; (vii) all
Debt (as described in the other clauses of this definition) and other obligations of others
guaranteed by such Person or in which such Person otherwise assures a creditor against loss of the
debtor or obligations of others; (viii) all obligations or undertakings of such Person to maintain
or cause to be maintained the financial position or covenants of others or to purchase the Debt or
Property of others; (ix) obligations to gather or transport Hydrocarbons in consideration of
advance payments; (x) obligations to pay for goods or services whether or not such goods or
services are actually received or utilized by such Person; (xi) any capital stock of such Person in
which such Person has a mandatory obligation to redeem such stock; (xii) any Debt of a Subsidiary
for which such Person is liable either by agreement or because of a Governmental Requirement; and
(xiii) all obligations of such Person under Hedging Agreements.

     Default shall mean an Event of Default or an event which with notice or lapse of applicable
grace period or both would become an Event of Default.

     Defaulting Lender shall mean any Lender that (i) has failed to fund any portion of the Loans
or Letter of Credit reimbursement obligations required to be funded by it hereunder within one
Business Day of the date required to be funded by it hereunder, (ii) has otherwise failed to pay
over to the Administrative Agent or any other Lender any other amount required to be paid by it
hereunder within one Business Day of the date when due, unless the subject of a good faith dispute,
or (iii) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding.

     Disposition or Dispose shall mean the sale, transfer or other disposition (including any
sale-leaseback transaction) of any property by any Person, other than the settlement or resolution
of a claim that is unrelated to the collateral securing the Indebtedness.

     Dollars and $ shall mean lawful money of the United States of America.

     Effective Amount shall mean (i) with respect to any Loans on any date, the aggregate
outstanding principal amount thereof after giving effect to any Loans and prepayments or repayments
thereof occurring on such date under the Revolver Facility; and (ii) with respect to
any outstanding LC Exposure on any date, the amount of such LC Exposure on such date after
giving effect to any issuances of Letters of Credit occurring on such date and any other changes in
the aggregate amount of the LC Exposure as of such date, including as a result of any
reimbursements of drawings under any Letters of Credit or any

6

 

reductions in the maximum amount available for drawing under Letters of Credit taking effect on
such date.

     Eligible Assignee shall mean (i) a Lender; (ii) an Affiliate of a Lender; (iii) an Approved
Fund; and (iv) any other Person (other than a natural Person) approved by (a) the Administrative
Agent and the Issuing Bank, and (b) unless a Default or Event of Default has occurred and is
continuing, the Borrower (each such approval not to be unreasonably withheld or delayed); provided,
that notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of
the Borrower’s Affiliates or Subsidiaries.

     Environmental Laws shall mean any and all Governmental Requirements pertaining to health or
the environment in effect in any and all jurisdictions in which any Obligor or any Subsidiary is
conducting or at any time has conducted business, or where any Property of any Obligor or any
Subsidiary is located, including without limitation, the Oil Pollution Act of 1990 (“OPA”), the
Clean Air Act, as amended, the Comprehensive Environmental, Response, Compensation, and Liability
Act of 1980 (“CERCLA”), as amended, the Federal Water Pollution Control Act, as amended, the Occupational
Safety and Health Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976

(“RCRA”), as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as
amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, the Hazardous
Materials Transportation Act, as amended, and other environmental conservation or protection laws.
The term “oil” shall have the meaning specified in OPA, the terms “hazardous substance” and
“release” or “threatened release” have the meanings specified in CERCLA, and the terms “solid
waste” and “disposal” or “disposed” have the meanings specified in RCRA; provided, however, that
(i) in the event either OPA, CERCLA or RCRA is amended so as to broaden the meaning of any term
defined thereby, such broader meaning shall apply subsequent to the effective date of such
amendment and (ii) to the extent the laws of the state in which any Property of any Obligor or any
Subsidiary is located establish a meaning for “oil,” “hazardous substance,” “release,” “solid
waste” or “disposal” which is broader than that specified in either OPA, CERCLA or RCRA, such
broader meaning shall apply.

     ERISA shall mean the Employee Retirement Income Security Act of 1974, as amended from time to
time and any successor statute.

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

     ERISA Event shall mean (i) a “Reportable Event” described in Section 4043 of ERISA and the
regulations issued thereunder, (ii) the withdrawal of the Borrower, any Subsidiary or any ERISA
Affiliate from a Plan during a plan year in which it was a “substantial employer” as defined in
Section 4001(a)(2) of ERISA, (iii) the filing of a notice of intent to terminate a Plan or the
treatment of a Plan amendment as a termination under Section 4041 of ERISA, (iv) the
institution of proceedings to terminate a Plan by the PBGC or (v) any other event or condition
which might constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Plan.

     Event of Default shall have the meaning assigned such term in Section 10.01.

     Excepted Liens shall mean: (i) Liens for taxes, assessments or other governmental charges or
levies not yet due or which are being contested in good faith by appropriate action and for which
adequate reserves have been maintained; (ii) Liens in connection with worker’s compensation,
unemployment insurance or other social security, old age pension or public liability obligations
not yet due or which are being contested in good faith by appropriate action and for which adequate
reserves have been maintained

7

 

in accordance with GAAP; (iii) vendors’, carriers’, warehousemen’s, repairmen’s, mechanics’,
workmen’s, materialmen’s, construction or other like Liens arising by operation of law in the
ordinary course of business or incident to the gathering, transportation, operation and maintenance
of any pipeline Properties or statutory landlord’s liens, each of which is in respect of
obligations that have not been outstanding more than 90 days or which are being contested in good
faith by appropriate proceedings and for which adequate reserves have been maintained in accordance
with GAAP; (iv) encumbrances of third party surface owners and owners of other estates in lands
(other than lands to which any Obligor has fee simple title) covered by pipeline right-of-ways,
permits and easements; (v) encumbrances (other than to secure the payment of borrowed money or the
deferred purchase price of Property or services), easements, restrictions, servitudes, permits,
conditions, covenants, exceptions or reservations in any rights of way or other Property of any
Obligor or any Subsidiary for the purpose of roads, pipelines, transmission lines, transportation
lines, distribution lines for the removal of gas, oil, or timber, and other like purposes, or for
the joint or common use of real estate, rights of way, facilities and equipment, and defects,
irregularities, zoning restrictions and deficiencies in title of any rights of way or other
Property which in the aggregate do not materially impair the use of such rights of way or other
Property for the purposes of which such rights of way and other Property are held by any Obligor or
any Subsidiary or materially impair the value of such Property subject thereto; (vi) deposits of
cash or securities to secure the performance of bids, trade contracts, leases, statutory
obligations and other obligations of a like nature incurred in the ordinary course of business; and
(vii) Liens which do not materially interfere with the occupation, use, and enjoyment by Borrower
of the Properties in the ordinary course of business as presently conducted or materially impair
the value thereof for the purposes thereof.

     Facility shall mean the Revolver Facility.

     Federal Funds Rate shall mean, for any day, the rate per annum (rounded upwards, if necessary,
to the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight federal funds
transactions with a member of the Federal Reserve System arranged by federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such-
day, provided, that (i) if the date for which such rate is to be determined is not a Business Day,
the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and (ii) if such rate is not so
published for any day, the Federal Funds Rate for such day shall be the average rate charged to the
Administrative Agent on such day on such transactions as determined by the Administrative Agent.

     Fee Letter shall mean that certain letter agreement from Wachovia Bank, National Association
and Wachovia Capital Markets, LLC to the Borrower dated March 3, 2006, each concerning certain fees
in connection with this Agreement and any agreements or instruments executed in connection
therewith, as the same may be amended or replaced from time to time.

     Financial Statements shall mean the financial statement or statements described or referred
to in Section 7.02.

     Foreign Lender shall mean any Lender that is organized under the laws of a jurisdiction other
than that in which the Borrower is resident for tax purposes. For purposes of this definition, the
United States, each State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction.

     Form S-1 shall mean the Form S-1 of the Borrower filed with the Securities and Exchange
Commission under Registration No. 333-130999.

8

 

     Fund shall mean any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its business.

     GAAP shall mean generally accepted accounting principles in the United States of America in
effect from time to time.

     General Partner shall mean Atlas Pipeline Holdings GP, LLC, a Delaware limited liability
company.

     Governmental Authority shall include the country, the state, county, city and political
subdivisions in which any Person or such Person’s Property is located or which exercises valid
jurisdiction over any such Person or such Person’s Property, and any court, agency, department,
commission, board, bureau or instrumentality of any of them including monetary authorities which
exercises valid jurisdiction over any such Person or such Person’s Property. Unless otherwise
specified, all references to Governmental Authority herein shall mean a Governmental Authority
having jurisdiction over, where applicable, any Obligor or any of their Property or the
Administrative Agent, any Lender or any Applicable Lending Office.

     Governmental Requirement shall mean any law, statute, code, ordinance, order, determination,
rule, regulation, judgment, decree, injunction, franchise, permit, certificate, license,
authorization or other directive or requirement (whether or not having the force of law),
including, without limitation, Environmental Laws, energy regulations and occupational, safety and
health standards or controls, of any Governmental Authority.

     Guarantor shall mean APL General Partner and each Subsidiary of Borrower hereafter formed or
acquired, except for the Unrestricted Entities.

     Guaranty Agreement shall mean, collectively, (i) an agreement executed by a Guarantor in form
and substance satisfactory to the Administrative Agent guarantying, unconditionally, payment of the
Indebtedness, together with (ii) any other amendment, modification, supplement, restatement,
ratification, or reaffirmation of any Guaranty Agreement made in accordance with the Loan
Documents.

     Hedging Agreements shall mean any commodity, interest rate or currency swap, cap, floor,
collar, forward agreement or other exchange or protection agreements or any option with respect to
any such transaction.

     Highest Lawful Rate shall mean, as of a particular date, the highest non-usurious rate of
interest, if any, permitted from day to day by applicable law. To the extent Texas law is
applicable, the Lenders hereby notify and disclose to the Borrower that, for purposes of Texas
Finance Code §303.001, as it may from time to time be amended, the “applicable ceiling” shall be
the “weekly ceiling” from time to time in effect as limited by Texas Finance Code §303.009;
provided however, that to the extent permitted by applicable law, the Lender reserves the right to
change the “applicable ceiling” from time to time by further notice and disclosure to the Borrower.

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

     Indebtedness shall mean any and all amounts owing or to be owing by the Borrower or any other
Obligor to the Administrative Agent, the Issuing Bank and/or the Lenders or any Affiliates of
Lenders in connection with the Loan Documents now or hereafter arising between the Borrower or any
other Obligor

9

 

and the Administrative Agent, the Issuing Bank, any Lender or its Affiliate and permitted by the
terms of this Agreement, and all renewals, extensions and/or rearrangements of any of the
foregoing. Indebtedness shall also include any obligation owing to any Person under Hedging
Agreements to the extent such Person was a Lender or Affiliate thereof when such Hedging Agreement
was executed.

     Indemnified Parties shall have the meaning assigned such term in Section 12.03(a)(ii).

     Initial Funding shall mean the funding of the initial Loans or issuance of the initial Letters
of Credit upon satisfaction of the conditions set forth in Sections 6.01 and 6.02.

     Intercompany Debt shall mean funded Debt that is owed by an Obligor to the Borrower or to any
other Obligor, or by the Borrower or any other Obligor to another Obligor.

     Intercompany Notes shall mean the promissory notes executed to evidence the Intercompany Debt.

     Interest Period shall mean, with respect to any LIBOR Loan, the period commencing on the date
such LIBOR Loan is made and ending on the numerically corresponding day in the first, second, third
or sixth calendar month thereafter, as the Borrower may select as provided in Section 2.02, except
that each Interest Period which commences on the last Business Day of a calendar month (or on any
day for which there is no numerically corresponding day in the appropriate subsequent calendar
month) shall end on the last Business Day of the appropriate subsequent calendar month.
Notwithstanding the foregoing: (i) no Interest Period with respect to Loans may end after the
Termination Date in respect of the Revolver Facility; (ii) no Interest Period for any LIBOR Loan
may end after the due date of any installment, if any, provided for in Section 3.01 to the extent
that such LIBOR Loan would need to be prepaid prior to the end of such Interest Period in order for
such installment to be paid when due; (iii) each Interest Period which would otherwise end on a day
which is not a Business Day shall end on the next succeeding Business Day (or, if such next
succeeding Business Day falls in the next succeeding
calendar month, on the next preceding Business Day); and (iv) no Interest Period shall have a
duration of less than one month and, if the Interest Period for any LIBOR Loans would otherwise be
for a shorter period, such Loans shall not be available hereunder.

     Issuing Bank shall have the meaning assigned to such term in the introductory paragraph to
this Agreement, or any other Lender agreed to between the Borrower and the Administrative Agent to
issue Letters of Credit.

     LC Commitment at any time shall mean One Million Dollars ($1,000,000).

     LC Exposure at any time shall mean the sum of (i) the aggregate amount available to be drawn
under all outstanding Letters of Credit plus (ii) the aggregate of all amounts drawn under all
Letters of Credit and not yet reimbursed.

     Letter of Credit Agreements shall mean the written agreements with the Issuing Bank, as
issuing lender for any Letter of Credit, executed in connection with the issuance by the Issuing
Bank of the Letters of Credit, such agreements to be on the Issuing Bank’s customary form for
letters of credit of comparable amount and purpose as from time to time in effect or as otherwise
agreed to by the Borrower and the Issuing Bank.

     Letters of Credit shall mean the stand-by letters of credit issued pursuant to Section 2.01(b)
and all reimbursement obligations pertaining to any such letters of credit, and “Letter of Credit”
shall mean any one of the Letters of Credit and the reimbursement obligations pertaining thereto.

10

 

     Leverage Ratio has the meaning set forth in Section 9.15.

     LIBOR shall mean the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of
1%) of interest determined on the basis of the rate for deposits in Dollars for a period equal to
the applicable Interest Period commencing on the first day of such Interest Period appearing on Dow
Jones Market Service Page 3750 as of 11:00 a.m. (London time) two (2) Business Days prior to the
first day of the applicable Interest Period. In the event that such rate does not appear on Dow
Jones Market Service Page 3750, “LIBOR” shall be determined by the Administrative Agent to be the
rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) at which deposits in
Dollars are offered by leading reference banks in the London interbank market to the Administrative
Agent at approximately 11:00 a.m. (London time) two Business Days prior to the first day of the
applicable Interest Period for a period equal to such Interest Period and in an amount
substantially equal to the amount of the applicable Loan.

     LIBOR Loans shall mean Loans the interest rates on which are determined on the basis of rates
referred to in the definition of “Adjusted LIBOR”.

     Lien shall mean any interest in Property securing an obligation owed to, or a claim by, a
Person other than the owner of the Property, whether such interest is based on the common law,
statute or contract, and whether such obligation or claim is fixed or contingent, and including but
not limited to the lien or security interest arising from a mortgage, encumbrance, pledge, security
agreement, conditional sale or trust receipt or a lease, consignment or bailment for security
purposes. The term “Lien” shall include reservations, exceptions, encroachments, easements, rights
of way, covenants, conditions, restrictions, leases and other title exceptions and encumbrances
affecting Property. For the purposes of this Agreement, each Obligor shall be deemed to be the
owner of any Property which it has acquired or holds subject to a conditional sale agreement, or
leases under a financing lease or other arrangement pursuant to which title to
the Property has been retained by or vested in some other Person in a transaction intended to
create a financing.

     Limited Partnership Agreement shall mean that certain Amended and Restated Agreement of
Limited Partnership of Borrower to be dated on or prior to the Initial Funding, in substantially
the form attached to the Form S-1, as such agreement may be amended, extended, revised or replaced
from time to time.

     Loan Documents shall mean this Agreement, the Notes, the Guaranty Agreements, all Letters of
Credit, all Letter of Credit Agreements, the Fee Letter, the Security Instruments, Hedging
Agreements entered into between Borrower or any other Obligor and any Lender or Affiliate of any
Lender and the Consent to Assignment.

     Loans shall mean the loans as provided for by Section 2.01(a) or any continuations or
conversions thereof.

     Margin Regulations shall mean Regulations U, T, and X of the Board of Governors of the Federal
Reserve System of the United States.

     Material Adverse Effect shall mean any material and adverse effect on (i) the assets,
liabilities, financial condition, business, operations or affairs of the Borrower and its
Consolidated Subsidiaries, or Atlas Pipeline Partners and its Consolidated Subsidiaries, in each
case taken as a whole, or (ii) the ability of the Borrower and its Consolidated Subsidiaries, or
Atlas Pipeline Partners and its Consolidated Subsidiaries, in each case taken as a whole, to carry
out their business as at the Closing Date, or (iii) the ability of any Obligor to meet its
obligations under the Loan Documents on a timely basis, or (iv) the Administrative Agent’s and the
Lenders’ interests in the collateral securing the Indebtedness, or the

11

 

Administrative Agents’ or the Lenders’ ability to enforce their rights and remedies under this
Agreement or any other Loan Document, at law or in equity.

     Material Agreements shall have the meaning assigned to such term in Section 7.21.

     Maximum Revolver Amount shall mean, as to each Lender, the dollar amount of such Lender’s
Percentage Share of the Revolver Facility (as the same may be reduced pursuant to Section 2.03(a)
pro rata to each Lender based on its Percentage Share of the Revolver Facility), as modified from
time to time to reflect any assignments permitted by Section 12.06(b). Each Lender’s initial
Maximum Revolver Amount is set forth on Schedule 2.01 attached hereto.

     Moody’s shall mean Moody’s Investor Service, Inc. and any successor thereto.

     Multiemployer Plan shall mean a Plan defined as such in Section 3(37) or 4001(a)(3) of
ERISA.

     Notes shall mean, collectively, the Revolver Notes provided for by Section 2.06, together with
any and all renewals, extensions for any period, increases, rearrangements, substitutions or
modifications thereof.

     Obligor shall mean each Initial Obligor and each additional Person party to a Guaranty.

     Other Taxes shall have the meaning assigned such term in Section 4.06(b).

     Participant has the meaning set forth in Section 12.06.

     PBGC shall mean the Pension Benefit Guaranty Corporation or any entity succeeding to any or
all of its functions.

     Percentage Share for each Lender shall mean on any date of determination (i) for purposes of
sharing any amount or fee payable to any Lender in respect of the Facility (or subfacility
thereof), the proportion that the portion of the Principal Debt for the Facility (or subfacility
thereof) owed to such Lender (whether held directly or through a participation in respect of the
Letter of Credit subfacility and determined after giving effect thereto) bears to the Principal
Debt under the Facility (or subfacility thereof) owed to all Lenders thereunder at the time in
question, and (b) for all other purposes, the proportion that the portion of the Principal Debt
owed to such Lender bears to the Principal Debt owed to all Lenders at the time in question, or if
no Principal Debt is outstanding, then the proportion that the aggregate of such Lender’s
Commitment then in effect under the Facility bears to the Revolver Commitment then in effect.

     Permitted Acquisition shall mean any acquisition made pursuant to Section 9.03(j).

     Permitted Merger shall mean such merger or consolidation as is permitted under Section
9.09.

     Person shall mean any individual, corporation, company, voluntary association, partnership,
joint venture, trust, unincorporated organization or government or any agency, instrumentality or
political subdivision thereof, or any other form of entity.

     Plan shall mean any employee pension benefit plan, as defined in Section 3(2) of ERISA, which
(i) is currently or hereafter sponsored, maintained or contributed to by the Borrower, any
Subsidiary or an ERISA Affiliate or (ii) was at any time during the preceding six calendar years
sponsored, maintained or contributed to, by the Borrower, any Subsidiary or an ERISA Affiliate.

12

 

     Pledges shall have the meaning assigned to such term in Section 10.03.

     Post-Default Rate shall mean, in respect of (i) all amounts due and payable with respect to
LIBOR Loans, a rate per annum equal to two percent (2%) per annum above the rate then applicable to
such LIBOR Loans until the end of the applicable Interest Period and thereafter at a rate equal to
two percent (2%) per annum above the rate then applicable to Base Rate Loans and (ii) all amounts
due and payable with respect to Base Rate Loans and all other obligations arising under the
Facility, a rate per annum equal to two percent (2%) per annum above the rate then applicable to
Base Rate Loans, provided in each case that no Post-Default Rate charged by any person shall ever
exceed the Highest Lawful Rate.

     Prime Rate shall mean the rate of interest from time to time announced publicly by the
Administrative Agent as its prime commercial lending rate. Such rate is set by the Administrative
Agent as a general reference rate of interest, taking into account such factors as the
Administrative Agent may deem appropriate, it being understood that many of the Administrative
Agent’s commercial or other loans are priced in relation to such rate, that it is not necessarily
the lowest or best rate actually charged to any customer and that the Administrative Agent may make
various commercial or other loans at rates of interest having no relationship to such rate.

     Principal Debt shall mean, on any date of determination, the aggregate unpaid principal
balance of all Loans, together with the aggregate unpaid reimbursement obligations of Borrower in
respect of drawings under any Letter of Credit.

     Principal Office shall mean the principal office of the Administrative Agent, presently
located at 1001 Fannin, Suite 2255, Houston, Texas 77002-6709.

     Property shall mean any interest in any kind of property or asset, whether real, personal or
mixed, moveable or immoveable, tangible or intangible.

     Quarterly Date shall mean the first day of each January, April, July, and October in each
year, the first of which shall be July, 2006; provided, however, that if any such day is not a
Business Day, such Quarterly Date shall be the next succeeding Business Day.

     Register has the meaning set forth in Section 12.06.

     Regulation D shall mean Regulation D of the Board of Governors of the Federal Reserve System
(or any successor), as the same may be amended or supplemented from time to time.

     Regulatory Change shall mean, with respect to any Lender, any change after the Closing Date in
any Governmental Requirement (including Regulation D) or the adoption or making after such date of
any interpretations, directives or requests applying to a class of lenders (including such Lender
or its Applicable Lending Office) of or under any Governmental Requirement (whether or not having
the force of law) by any Governmental Authority charged with the interpretation or administration
thereof.

     Related Parties shall mean, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents and advisors of such Person and of such Person’s
Affiliates.

     Required Lenders shall mean Lenders holding (i) at least 66-2/3% of the aggregate Revolver
Commitments, if no Default or Event of Default exists, or (ii) at least 66-2/3% of the outstanding
Principal Debt, if a Default or Event of Default exists.

     Required Payment shall have the meaning assigned such term in Section 4.04.

13

 

     Reserve Requirement shall mean, for any Interest Period for any LIBOR Loan, the average
maximum rate at which reserves (including any marginal, supplemental or emergency reserves) are
required to be maintained during such Interest Period under Regulation D by member banks of the
Federal Reserve System in New York City with deposits exceeding one billion Dollars against
“Eurocurrency liabilities” (as such term is used in Regulation D). Without limiting the effect of
the foregoing, the Reserve Requirement shall reflect any other reserves required to be maintained
by such member banks by reason of any Regulatory Change against (i) any category of liabilities
which includes deposits by reference to which LIBOR is to be determined as provided in the
definition of “LIBOR” or (ii) any category of extensions of credit or other assets which include a
LIBOR Loan.

     Responsible Officer shall mean, as to any Person, the Chief Executive Officer, the President
or any Vice President of such Person and, with respect to financial matters, the term “Responsible
Officer” shall include the Chief Financial Officer of such Person. Unless otherwise specified, all
references to a Responsible Officer herein shall mean a Responsible Officer of the General Partner.

     Revolver Commitment shall mean, for any Lender, its obligation to make Loans as provided in
Section 2.01(a) and participate in the issuance of Letters of Credit as provided in Section 2.01(b)
up to such Lender’s Maximum Revolver Amount (as the same may be decreased pursuant to Section
2.03(a)).

     Revolver Facility shall mean the credit facility as described in and subject to the
limitations set forth in Section 2.01(a) hereof (as the same may be decreased pursuant to Section
2.03(a)).

     Revolver Note shall mean a promissory note in substantially the form of Exhibit A, and all
renewals and extensions of all or any part thereof.

     S&P shall mean Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies,
Inc., and any successor thereto.

     SEC shall mean the Securities and Exchange Commission or any successor Governmental Authority.

     Security Instruments shall mean the agreements or instruments described or referred to in
Exhibit D, and any and all other agreements or instruments now or hereafter executed and delivered
by the Obligors or any other Person (other than participation or similar agreements between any
Lender and any other lender or creditor with respect to any Indebtedness pursuant to this
Agreement) in connection with, or as security for the payment or performance of, the Notes, the
Guaranty Agreements, the Hedging Agreements constituting Loan Documents, this Agreement, or
reimbursement obligations under the Letters of Credit, as such agreements may be amended,
supplemented or restated from time to time.

     Special Entity shall mean any joint venture, limited liability company or partnership, general
or limited partnership or any other type of partnership or company other than a corporation in
which the Borrower or one or more of its other Subsidiaries is a member, owner, partner or joint
venturer and owns, directly or indirectly, at least a majority of the equity of such entity or
controls such entity, but excluding any tax partnerships that are not classified as partnerships
under state law. For purposes of this definition, any Person which owns directly or indirectly an
equity investment in another Person which allows the first Person to manage or elect managers who
manage the normal activities of such second Person will be deemed to “control” such second Person
(e.g. a sole general partner controls a limited partnership).

     Subsidiary shall mean (i) any corporation of which at least a majority of the outstanding
shares of stock having by the terms thereof ordinary voting power to elect a majority of the board
of directors of such corporation (irrespective of whether or not at the time stock of any other
class or classes of such

14

 

corporation shall have or might have voting power by reason of the happening of any contingency) is
at the time directly or indirectly owned or controlled by the Borrower or one or more of its
Subsidiaries or by the Borrower and one or more of its Subsidiaries and (ii) any Special Entity.
References to Subsidiaries of the Borrower or any Obligor shall include the Unrestricted Entities.

     Taxes shall have the meaning assigned such term in Section 4.06(a).

     Termination Date shall mean (i) for purposes of the Revolver Facility, the earlier of (a)
April 13, 2010, and (b) the effective date that Lenders’ Revolver Commitments are otherwise
canceled or terminated.

     Type shall mean, with respect to any Loan, a Base Rate Loan or a LIBOR Loan.

     Unrestricted Entities shall mean Atlas Pipeline Partners and its Subsidiaries and any other
Subsidiaries of the Borrower designated as Unrestricted Entities by the Borrower and approved by
Required Lenders.

     Wachovia shall mean Wachovia Bank, National Association.

     Wholly Owned Subsidiary shall mean a Subsidiary for which all of the outstanding shares of
stock or other equity of such entity is owned directly or indirectly by Borrower.

     Section 1.03 Accounting Terms and Determinations. Unless otherwise specified herein, all
accounting terms used herein shall be interpreted, all determinations with respect to accounting
matters hereunder shall be made, and all financial statements and certificates and reports as to
financial matters required to be furnished to the Administrative Agent or the Lenders hereunder
shall be prepared, in accordance with GAAP, applied on a basis consistent with the audited
financial statements of the Borrower referred to in Section 7.02 (except for changes concurred with
by the Borrower’s independent public accountants).

ARTICLE II

Commitments

     Section 2.01 Loans and Letters of Credit

     (a)
Loans. Subject to and in reliance upon the terms, conditions, representations and
warranties in the Loan Documents, each Lender severally agrees to make Loans to the
Borrower during the period from and including (i) the Closing Date or (ii) such later date
that such Lender becomes a party to this Agreement as provided in Section 12.06(b), to and
up to, but excluding, the Termination Date in respect of the Revolver Facility in an
aggregate principal amount at any one time outstanding up to, but not exceeding, the amount
of such Lender’s Revolver Commitment as then in effect; provided however, that the
aggregate principal amount of all such Loans by all Lenders hereunder at any one time
outstanding together with the LC Exposure shall not exceed the Aggregate Maximum Revolver
Amount. Subject to the terms of this Agreement, during the period from the Closing Date to
and up to, but excluding, the Termination
Date in respect of the Revolver Facility, the Borrower may borrow, repay and reborrow
the amount described in this Section 2.01(a).

     (b)
Letters of Credit. During the period from and including the Closing Date to, but
excluding, five (5) Business Days prior to the Termination Date in respect of the Revolver
Facility, the Issuing Bank, as issuing bank for the Lenders, agrees to extend credit for
the account

15

 

of any Obligor at any time and from time to time by issuing, renewing, extending or reissuing
Letters of Credit; provided however, that the LC Exposure at any one time outstanding shall not
exceed the lesser of (i) the LC Commitment or (ii) the Aggregate Maximum Revolver Amount, as then
in effect, minus the aggregate principal amount of all Loans then outstanding. The Lenders shall
participate in such Letters of Credit according to their respective Percentage Shares of the
Revolver Facility. Each of the Letters of Credit shall (i) be issued by the Issuing Bank, (ii)
contain such terms and provisions as are reasonably required by the Issuing Bank, (iii) be for the
account of such Obligor, and (iv) expire not later than the earlier of (A) twelve months from the
date of issuance of such Letter of Credit and (B) five (5) Business Days before the Termination
Date in respect of the Revolver Facility.

     (c)
Limitation on Types of Loans. Subject to the other terms and provisions of this
Agreement, at the option of the Borrower, the Loans may be Base Rate Loans or LIBOR Loans; provided
that, without the prior written consent of the Required Lenders, no more than five LIBOR Loans may
be outstanding at any time.

     Section 2.02 Borrowings, Continuations and Conversions, Letters of Credit.

     (a)
Borrowings. The Borrower shall give the Administrative Agent (which shall promptly notify
the Lenders) advance notice as hereinafter provided of each borrowing hereunder, which shall
specify (i) the aggregate amount of such borrowing, (ii) the Type and (iii) the date (which shall
be a Business Day) of the Loans, and (iv) (in the case of LIBOR Loans) the duration of the Interest
Period therefor.

     (b)
Minimum Amounts. If a borrowing consists in whole or in part of LIBOR Loans, such LIBOR
Loans shall be in amounts of at least Three Million Dollars ($3,000,000) or any whole multiple of
One Million Dollars ($1,000,000) in excess thereof. If a borrowing consists in whole or in part of
Base Rate Loans, such Base Rate Loans shall be in amounts of at least Three Million Dollars
($3,000,000) or integral multiples of One Million Dollars ($1,000,000) in excess thereof.

     (c)
Notices. All borrowings, continuations and conversions shall require advance written
notice to the Administrative Agent (which shall promptly notify the Lenders) in the form of Exhibit
B (or telephonic notice promptly confirmed by such a written notice), which in each case shall be
irrevocable, from the Borrower to be received by the Administrative Agent not later than 11:00 a.m.
Charlotte, North Carolina time at least one Business Day prior to the date of each Base Rate Loan
borrowing and three Business Days prior to the date of each LIBOR Loan borrowing, continuation or
conversion. Without in any way limiting the Borrower’s obligation to confirm in writing any
telephonic notice, the Administrative Agent may act without liability upon the basis of telephonic
notice believed by the Administrative Agent in good faith to be from the Borrower prior to receipt
of written confirmation. In each such case, the Borrower hereby waives the right to dispute the
Administrative Agent’s record of the terms of such telephonic notice except in the case of gross
negligence or willful misconduct by the Administrative Agent.

     (d)
Continuation Options. Subject to the provisions made in this Section 2.02(d), the
Borrower may elect to continue all or any part of any LIBOR Loan beyond the expiration of the then
current Interest Period relating thereto by giving advance notice as provided in Section 2.02(c) to
the Administrative Agent (which shall promptly notify the Lenders) of such election, specifying the
amount of such Loan to be continued and the Interest Period therefor. In the absence of such a
timely and proper election, the Borrower shall be deemed to have elected to convert such LIBOR Loan
to a Base Rate Loan pursuant to Section 2.02(e). All or any part of

16

 

any LIBOR Loan may be continued as provided herein, provided that (i) any continuation of
any such Loan shall be (as to each Loan as continued for an applicable Interest Period) in
amounts of at least Three Million Dollars ($3,000,000) or any whole multiple of One Million
Dollars ($1,000,000) in excess thereof and (ii) no Default shall have occurred and be
continuing. If a Default shall have occurred and be continuing, each LIBOR Loan shall be
converted to a Base Rate Loan on the last day of the Interest Period applicable thereto.

     (e)
Conversion Options. The Borrower may elect to convert all or any part of any
LIBOR Loan on the last day of the then current Interest Period relating thereto to a Base
Rate Loan by giving advance notice to the Administrative Agent (which shall promptly notify
the Lenders) of such election. Subject to the provisions made in this Section 2.02(e), the
Borrower may elect to convert all or any part of any Base Rate Loan at any time and from
time to time to a LIBOR Loan by giving advance notice as provided in Section 2.02(c) to the
Administrative Agent (which shall promptly notify the Lenders) of such election. All or
any part of any outstanding Loan may be converted as provided herein, provided that (i) any
conversion of any Base Rate Loan into a LIBOR Loan shall be (as to each such Loan into
which there is a conversion for an applicable Interest Period) in amounts of at least Three
Million Dollars ($3,000,000) or any whole multiple of One Million Dollars ($1,000,000) in
excess thereof and (ii) no Default shall have occurred and be continuing. If a Default
shall have occurred and be continuing, no Base Rate Loan may be converted into a LIBOR
Loan.

     (f)
Advances. Not later than 12:00 p.m. Charlotte, North Carolina time on the date
specified for each the borrowing hereunder, each Lender shall make available the amount of
the Loan to be made by it on such date to the Administrative Agent, to an account which the
Administrative Agent shall specify, in immediately available funds, for the account of the
Borrower. The amounts so received by the Administrative Agent shall, subject to the terms
and conditions of this Agreement, be made available to the Borrower by depositing the same,
in immediately available funds, in an account of the Borrower, designated by the Borrower
and maintained at the Principal Office, or in such other accounts designated by the
Borrower.

     (g)
Letters of Credit. The Borrower shall give the Issuing Bank (which shall promptly
notify the Lenders of such request and their Percentage Share of such Letter of Credit)
advance notice to be received by the Issuing Bank not later than 12:00 p.m. Charlotte,
North Carolina time not less than three Business Days prior thereto of each request for the
issuance, and at least ten Business Days prior to the date of the renewal or extension, of
a Letter of Credit hereunder which request shall specify (i) the amount of such Letter of
Credit, (ii) the date (which shall be a Business Day) such Letter of Credit is to be
issued, renewed or extended, (iii) the duration thereof, (iv) the name and address of the
beneficiary thereof, and (v) such other information as the Issuing Bank may reasonably
request, all of which shall be reasonably satisfactory to the Issuing Bank.
Subject to the terms and conditions of this Agreement, on the date specified for the
issuance, renewal or extension of a Letter of Credit, the Administrative Agent shall issue,
renew or extend such Letter of Credit to the beneficiary thereof.

     In conjunction with the issuance of each Letter of Credit, the Borrower shall execute a Letter
of Credit Agreement. In the event of any conflict between any provision of a Letter of Credit
Agreement and this Agreement, the Borrower, the Issuing Bank, the Administrative Agent and the
Lenders hereby agree that the provisions of this Agreement shall govern.

     The Issuing Bank will send to the Borrower and each Lender, immediately upon issuance of any
Letter of Credit, or an amendment thereto, a true and complete copy of such Letter of Credit, or
such amendment thereto.

17

 

     Section 2.03 Changes of Commitments.

     (a) The Borrower shall have the right to terminate or to reduce the amount of the Aggregate
Maximum Revolver Amounts at any time, or from time to time, upon not less than thirty (30) days’
prior notice to the Administrative Agent (who shall promptly notify the Lenders) of each such
termination or reduction, which notice shall specify the effective date thereof and the amount of
any such reduction (which shall not be less than Three Million Dollars ($3,000,000) or any whole
multiple of One Million Dollars ($1,000,000) in excess thereof, and no more than an amount by which
the Aggregate Maximum Revolver Amounts would be less than the aggregate outstanding principal
amount of the Loans plus the LC Exposure) and shall be irrevocable and effective only upon receipt
by the Administrative Agent.

     (b) The Aggregate Maximum Revolver Amounts, once terminated or reduced, may not be reinstated.

     Section 2.04 Fees.

     (a)
Commitment Fee. The Borrower shall pay to the Administrative Agent for the account of
each Lender a commitment fee on the daily average unused amount of the aggregate Revolver
Commitments, up to, but excluding, the Termination Date in respect of the Revolver Facility at a
rate per annum equal to 0.50%. Accrued commitment fees shall be payable quarterly in arrears on
each Quarterly Date and on the Termination Date in respect of the Revolver Facility.

     (b)
Letter of Credit Fees.

     (i) The Borrower agrees to pay the Administrative Agent, for the account of each
Lender, commissions for issuing the Letters of Credit on the daily average outstanding of
the maximum liability of the Issuing Bank existing from time to time under such Letter of
Credit (calculated separately for each Letter of Credit) at the rate per annum equal to the
Applicable Margin in effect from time to time for LIBOR Loans, provided, that each Letter
of Credit shall bear a minimum commission of Five Hundred Dollars ($500) and further
provided, during any period commencing on the date of an Event of Default until the same is
paid in full or all Events of Default are cured and waived, equal to the Post-Default Rate.
Each Letter of Credit shall be deemed to be outstanding up to the full face amount of the
Letter of Credit until the Issuing Bank has received the canceled Letter of Credit or a
written cancellation of the Letter of Credit from the beneficiary of such Letter of Credit
in form and substance acceptable to the Issuing Bank, or for any reductions in the amount
of the Letter of Credit (other than from a drawing), written notification from the
beneficiary of such Letter of Credit. Such
commissions are payable in advance at issuance of the Letter of Credit for the first
year thereof and thereafter, quarterly in arrears on each Quarterly Date and upon
cancellation or expiration of each such Letter of Credit.

     (ii) The Borrower agrees to pay the Administrative Agent, for the account of the
Issuing Bank, commissions for issuing the Letters of Credit (calculated separately for each
Letter of Credit) equal to 0.125% of the face amount of each Letter of Credit, payable upon
issuance of such Letter of Credit.

     (iii) The Borrower shall pay to the Administrative Agent, for the account of the
Issuing Bank, other customery fees assessed by the Issuing Bank in connection with the
administration of its Letters of Credit.

18

 

     (c)
Fee Letter. The Borrower shall pay to Administrative Agent and the Sole Lead
Arranger for their respective accounts such other fees as are set forth in the Fee Letter
on the dates specified therein to the extent not paid prior to the Closing Date.

     Section 2.05 Several Obligations. The failure of any Lender to make any Loan to be made by it
or to provide funds for disbursements or reimbursements under Letters of Credit on the date
specified therefor shall not relieve any other Lender of its obligation to make its Loan or provide
funds on such date, but no Lender shall be responsible for the failure of any other Lender to make
a Loan to be made by such other Lender or to provide funds to be provided by such other Lender.

     Section 2.06 Notes. The Loans made by each Lender shall be evidenced by a Revolver Note dated
as of (i) the Closing Date or (ii) the effective date of an Assignment and Assumption, payable to
the order of such Lender in a principal amount equal to its Maximum Revolver Amount as originally
in effect and otherwise duly completed and such substitute Notes as required by Section 12.06. The
date, amount, Type, interest rate and Interest Period of each Loan made by each Lender, and all
payments made on account of the principal thereof, shall be recorded by such Lender on its books
for its Note, and, prior to any transfer may be endorsed by such Lender on the schedule attached to
such Note or any continuation thereof or on any separate record maintained by such Lender. Failure
to make any such notation or to attach a schedule shall not affect any Lender’s or the Borrower’s
rights or obligations in respect of such Loans or affect the validity of such transfer by any
Lender of its Note.

     Section 2.07 Prepayments.

     (a)
Voluntary Prepayments. The Borrower may prepay the Base Rate Loans upon not less
than one (1) Business Day’s prior notice to the Administrative Agent (which shall promptly
notify the Lenders), which notice shall specify the prepayment date (which shall be a
Business Day) and the amount of the prepayment (which shall be at least One Hundred
Thousand Dollars ($100,000) or the remaining aggregate principal balance outstanding on the
Notes) and shall be irrevocable and effective only upon receipt by the Administrative
Agent, provided that interest on the principal prepaid, accrued to the prepayment date,
shall be paid on the prepayment date. The Borrower may prepay LIBOR Loans on the same
conditions as for Base Rate Loans (except that prior notice to the Administrative Agent
shall be not less than three (3) Business Days for LIBOR Loans) and in addition such
prepayments of LIBOR Loans shall be subject to the terms of Section 5.05 and shall be in an
amount equal to all of the LIBOR Loans for the Interest Period prepaid. In the event of a
voluntary prepayment of any Loans pursuant to
this Section 2.07(a), Borrower shall be entitled to reborrow such amounts pursuant to
Section 2.01(a).

     (b)
Generally. Prepayments permitted under this Section 2.07 shall be without premium
or penalty, except as required under Section 5.05 for prepayment of LIBOR Loans. With
respect to the Loans, any voluntary prepayments may be reborrowed subject to the then
effective Aggregate Maximum Revolver Amount.

     Section 2.08 Assumption of Risks. The Borrower assumes all risks of the acts or omissions of
any beneficiary of any Letter of Credit or any transferee thereof with respect to its use of such
Letter of Credit. Neither the Issuing Bank (except in the case of gross negligence or willful
misconduct on the part of the Issuing Bank or any of its employees), its correspondents nor any
Lender shall be responsible for the validity, sufficiency or genuineness of certificates or other
documents or any endorsements thereon, even if such certificates or other documents should in fact
prove to be invalid, insufficient, fraudulent or forged; for errors, omissions, interruptions or
delays in transmissions or delivery of any messages by mail, telex, or otherwise, whether or not
they be in code; for errors in translation or for errors in interpretation of technical terms; the
validity or sufficiency of any instrument transferring or assigning or

19

 

purporting to transfer or assign any Letter of Credit or the rights or benefits thereunder or
proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason;
the failure of any beneficiary or any transferee of any Letter of Credit to comply fully with
conditions required in order to draw upon any Letter of Credit; or for any other consequences
arising from causes beyond the Issuing Bank’s control or the control of the Issuing Bank’s
correspondents. In addition, neither the Issuing Bank, the Administrative Agent nor any Lender
shall be responsible for any error, neglect, or default of any of the Issuing Bank’s
correspondents; and none of the above shall affect, impair or prevent the vesting of any of the
Issuing Bank’s, the Administrative Agent’s or any Lender’s rights or powers hereunder or under the
Letter of Credit Agreements, all of which rights shall be cumulative. The Issuing Bank and its
correspondents may accept certificates or other documents that appear on their face to be in order,
without responsibility for further investigation of any matter contained therein regardless of any
notice or information to the contrary. In furtherance and not in limitation of the foregoing
provisions, the Borrower agrees that any action, inaction or omission taken or not taken by the
Issuing Bank or by any correspondent for the Issuing Bank in good faith in connection with any
Letter of Credit, or any related drafts, certificates, documents or instruments, shall be binding
on the Borrower and shall not put the Issuing Bank or its correspondents under any resulting
liability to the Borrower.

     Section 2.09 Obligation to Reimburse and to Prepay.

     (a) If a disbursement by the Issuing Bank is made under any Letter of Credit, the
Borrower shall pay to the Administrative Agent within two (2) Business Days after notice of
any such disbursement is received by the Borrower, the amount of each such disbursement
made by the Issuing Bank under the Letter of Credit (if such payment is not sooner effected
as may be required under this Section 2.09 or under other provisions of the Letter of
Credit), together with interest on the amount disbursed from and including the date of
disbursement until payment in full of such disbursed amount at a varying rate per annum
equal to (i) the then applicable interest rate for Base Rate Loans through the second
Business Day after notice of such disbursement is received by the Borrower and (ii)
thereafter, the Post-Default Rate for Base Rate Loans (but in no event to exceed the
Highest Lawful Rate) for the period from and including the third Business Day following the
date of such disbursement to and including the date of repayment in full of such
disbursed amount. The obligations of the Borrower under this Agreement with respect
to each Letter of Credit shall be absolute, unconditional and irrevocable and shall be paid
or performed strictly in accordance with the terms of this Agreement under all
circumstances whatsoever, including, without limitation, but only to the fullest extent
permitted by applicable law, the following circumstances: (i) any lack of validity or
enforceability of this Agreement, any Letter of Credit or any of the Security Instruments;
(ii) any amendment or waiver of (including any default), or any consent to departure from
this Agreement (except to the extent permitted by any amendment or waiver), any Letter of
Credit or any of the Security Instruments; (iii) the existence of any claim, set-off,
defense or other rights which the Borrower may have at any time against the beneficiary of
any Letter of Credit or any transferee of any Letter of Credit (or any Persons for whom any
such beneficiary or any such transferee may be acting), the Issuing Bank, the
Administrative Agent, any Lender or any other Person, whether in connection with this
Agreement, any Letter of Credit, the Security Instruments, the transactions contemplated
hereby or any unrelated transaction; (iv) any statement, certificate, draft, notice or any
other document presented under any Letter of Credit proves to have been forged, fraudulent,
insufficient or invalid in any respect or any statement therein proves to have been untrue
or inaccurate in any respect whatsoever; (v) payment by the Issuing Bank under any Letter
of Credit against presentation of a draft certificate which appears on its face to comply,
but does not comply, with the terms of such Letter of Credit; and (vi) any other
circumstance or happening whatsoever, whether or not similar to any of the foregoing.

20

 

Notwithstanding anything in this Agreement to the contrary, the Borrower will not be liable
for payment or performance that results from the gross negligence or willful misconduct of
the Issuing Bank, except (i) where the Borrower or any Subsidiary actually recovers the
proceeds for itself or the Issuing Bank of any payment made by the Issuing Bank in
connection with such gross negligence or willful misconduct or (ii) in cases where the
Administrative Agent makes payment to the named beneficiary of a Letter of Credit.

     (b) In the event of the occurrence of any Event of Default or the maturity of the
Revolver Notes, whether by acceleration or otherwise, an amount equal to the LC Exposure
shall be deemed to be forthwith due and owing by the Borrower to the Issuing Bank, the
Administrative Agent and the Lenders as of the date of any such occurrence; and the
Borrower’s obligation to pay such amount shall be absolute and unconditional, without
regard to whether any beneficiary of any such Letter of Credit has attempted to draw down
all or a portion of such amount under the terms of a Letter of Credit, and, to the fullest
extent permitted by applicable law, shall not be subject to any defense or be affected by a
right of set-off, counterclaim or recoupment which the Borrower may now or hereafter have
against any such beneficiary, the Issuing Bank, the Administrative Agent, the Lenders or
any other Person for any reason whatsoever. Such payments shall be held by the Issuing
Bank on behalf of the Lenders as cash collateral securing the LC Exposure in an account or
accounts at the Principal Office; and the Borrower hereby grants to and by its deposit with
the Administrative Agent grants to the Administrative Agent a security interest in such
cash collateral. In the event of any such payment by the Borrower of amounts contingently
owing under outstanding Letters of Credit and in the event that thereafter drafts or other
demands for payment complying with the terms of such Letters of Credit are not made prior
to the respective expiration dates thereof, the Administrative Agent agrees, if no Event of
Default has occurred and is continuing or if
no other amounts are outstanding under this Agreement, the Notes or the Security
Instruments, to remit to the Borrower amounts for which the contingent obligations
evidenced by the Letters of Credit have ceased.

     (c) Each Lender severally and unconditionally agrees that it shall promptly reimburse
the Issuing Bank an amount equal to such Lender’s Percentage Share of any disbursement made
by the Issuing Bank under any Letter of Credit that is not reimbursed according to this
Section 2.09.

     (d) Notwithstanding anything to the contrary contained herein, if no Event of Default
has occurred and is continuing, and subject to Availability under the Revolver Facility, to
the extent the Borrower has not reimbursed the Issuing Bank for any drawn upon Letter of
Credit within one (1) Business Day after notice of such disbursement has been received by
the Borrower, the amount of such Letter of Credit reimbursement obligation shall
automatically be funded by the Lenders as a Loan hereunder and used by the Lenders to pay
such Letter of Credit reimbursement obligation. If an Event of Default has occurred and is
continuing, or if the funding of such Letter of Credit reimbursement obligation as a Loan
would cause the aggregate amount of all Loans outstanding to exceed the Aggregate Maximum
Revolver Amount (after reduction for LC Exposure), such Letter of Credit reimbursement
obligation shall not be funded as a Loan, but instead shall accrue interest as provided in
Section 2.09(a).

     Section 2.10 Lending Offices. The Loans of each Type made by each Lender shall be made and
maintained at such Lender’s Applicable Lending Office for Loans of such Type.

21

 

ARTICLE III

Payments of Principal and Interest

     Section 3.01 Repayment of Loans.

     (a)
Loans. The Principal Debt is due and payable on the Termination Date in respect of the
Revolver Facility.

     (b)
Generally. The Borrower will pay to the Administrative Agent, for the account of each
Lender, the principal payments required by this Section 3.01.

     Section 3.02 Interest.

     (a)
Interest Rates. The Borrower will pay to the Administrative Agent, for the account of
each Lender, interest on the unpaid principal amount of each Loan made by such Lender for the
period commencing on the date such Loan is made to, but excluding, the date such Loan shall be paid
in full, at the following rates per annum:

     (i) if such a Loan is a Base Rate Loan, the Base Rate (as in effect from time to time)
plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate; and

     (ii) if such a Loan is a LIBOR Loan, for each Interest Period relating thereto, the
Adjusted LIBOR for such Loan plus the Applicable Margin (as in effect from time to time),
but in no event to exceed the Highest Lawful Rate.

     (b)
Post-Default Rate. Notwithstanding the foregoing, the Borrower will pay to the
Administrative Agent, for the account of each Lender, interest at the applicable Post-Default Rate
on any Loan made by such Lender, and (to the fullest extent permitted by law) on any other
amount payable by the Borrower hereunder, under any Loan Document or under any Note held by such
Lender to or for account of such Lender, for the period commencing on the date of an Event of
Default until the same is paid in full or all Events of Default are cured or waived.

     (c)
Due Dates. Accrued interest on Base Rate Loans shall be payable on each Quarterly Date
commencing on October 1, 2006, and accrued interest on each LIBOR Loan shall be payable on the last
day of the Interest Period therefor and, if such Interest Period is longer than three months, at
three-month intervals following the first day of such Interest Period, except that interest payable
at the Post-Default Rate shall be payable from time to time on demand and interest on any LIBOR
Loan that is converted into a Base Rate Loan (pursuant to Section 5.04) shall be payable on the
date of conversion (but only to the extent so converted). Any accrued and unpaid interest on the
Loans on the Termination Date in respect of the Revolver Facility shall be paid on such date.

     (d)
Determination of Rates. Promptly after the determination of any interest rate provided
for herein or any change therein, the Administrative Agent shall notify the Lenders to which such
interest is payable and the Borrower thereof. Each determination by the Administrative Agent of an
interest rate or fee hereunder shall, except in cases of manifest error, be final, conclusive and
binding on the parties.

22

 

ARTICLE IV

Payments; Pro Rata Treatment; Computations; Etc.

     Section 4.01 Payments. Except to the extent otherwise provided herein, all payments of
principal, interest and other amounts to be made by the Borrower under this Agreement, the Notes,
Letters of Credit, and the Letter of Credit Agreements shall be made in Dollars, in immediately
available funds, to the Administrative Agent at such account as the Administrative Agent shall
specify by notice to the Borrower from time to time, not later than 12:00 p.m. Charlotte, North
Carolina time on the date on which such payments shall become due (each such payment made after
such time on such due date to be deemed to have been made on the next succeeding Business Day).
Such payments shall be made without (to the fullest extent permitted by applicable law) defense,
set-off or counterclaim. Each payment received by the Administrative Agent under this Agreement or
any Note for account of a Lender shall be paid promptly to such Lender in immediately available
funds. Except as otherwise provided in the definition of “Interest Period”, if the due date of any
payment under this Agreement or any Note would otherwise fall on a day which is not a Business Day
such date shall be extended to the next succeeding Business Day and interest shall be payable for
any principal so extended for the period of such extension. At the time of each payment to the
Administrative Agent of any principal of or interest on any borrowing, the Borrower shall notify
the Administrative Agent of the Loans to which such payment shall apply. In the absence of such
notice the Administrative Agent may specify the Loans to which such payment shall apply, but to the
extent possible such payment or prepayment will be applied first to the Loans comprised of Base
Rate Loans.

     Section 4.02 Pro Rata Treatment. Except to the extent otherwise provided herein, each Lender
agrees that: (i) each borrowing from the Lenders under Section 2.01 and each continuation and
conversion under Section 2.02 shall be made from the Lenders pro rata in accordance with their
Percentage Share of the aggregate Revolver Commitments, each payment of fees under Sections 2.04(a)
and 2.04(b)(i), shall be made for account of the Lenders pro rata in accordance with their
Percentage Share of the aggregate Revolver Commitments, and each termination or reduction of the
amount of the Aggregate Maximum Revolver Amount under
Section 2.03(a) shall be applied to the Revolver Commitment of each Lender, pro rata according
to the amounts of its respective Revolver Commitment; (ii) each payment of principal of Loans by
the Borrower shall be made for account of the Lenders pro rata in accordance with the respective
unpaid principal amount of the Loans held by the Lenders; (iii) each payment of interest on Loans
by the Borrower shall be made for account of the Lenders pro rata in accordance with the amounts of
interest due and payable to the respective Lenders; (iv) each reimbursement by the Borrower of
disbursements under Letters of Credit shall be made for account of the Issuing Bank or, if funded
by the Lenders, pro rata for the account of the Lenders in accordance with the amounts of
reimbursement obligations due and payable to each respective Lender.

     Section 4.03 Computations. Interest on LIBOR Loans and fees shall be computed on the basis of
a year of 360 days and actual days elapsed (including the first day but excluding the last day)
occurring in the period for which such interest is payable, unless such calculation would exceed
the Highest Lawful Rate, in which case interest shall be calculated on the per annum basis of a
year of 365 or 366 days, as the case may be. Interest on Base Rate Loans shall be computed on the
basis of a year of 365 or 366 days, as the case may be, and actual days elapsed (including the
first day but excluding the last day) occurring in the period for which such interest is payable.

     Section 4.04 Non-receipt of Funds by the Administrative Agent. Unless the Administrative
Agent shall have been notified by a Lender or the Borrower prior to the date on which such
notifying party is scheduled to make payment to the Administrative Agent (in the case of a Lender)
of the proceeds of a Loan or a payment under a Letter of Credit to be made by it hereunder or (in
the case of the Borrower) a payment to the Administrative Agent for account of one or more of the
Lenders hereunder

23

 

(such payment being herein called the “Required Payment”), which notice shall be effective upon
receipt, that it does not intend to make the Required Payment to the Administrative Agent, the
Administrative Agent may assume that the Required Payment has been made and may, in reliance upon
such assumption (but shall not be required to), make the amount thereof available to the intended
recipient(s) on such date and, if such Lender or the Borrower (as the case may be) has not in fact
made the Required Payment to the Administrative Agent, the recipient(s) of such payment shall, on
demand, repay to the Administrative Agent the amount so made available together with interest
thereon in respect of each day during the period commencing on the date such amount was so made
available by the Administrative Agent until, but excluding, the date the Administrative Agent
recovers such amount at a rate per annum which, for any Lender as recipient, will be equal to the
Federal Funds Rate, and for the Borrower as recipient, will be equal to the Base Rate plus the
Applicable Margin.

     Section 4.05 Set-off, Sharing of Payments, Etc.

     (a) The Borrower agrees that, in addition to (and without limitation of) any right of
set-off, bankers’ lien or counterclaim a Lender may otherwise have, each Lender shall have
the right and be entitled (after consultation with the Administrative Agent), at its
option, to offset balances held by it or by any of its Affiliates for account of the
Borrower or any Subsidiary at any of its offices, in Dollars or in any other currency,
against any principal of or interest on any of such Lender’s Loans, or any other amount
payable to such Lender hereunder, which is not paid when due (regardless of whether such
balances are then due to the Borrower), in which case it shall promptly notify the Borrower
and the Administrative Agent thereof, provided that such Lender’s failure to give such
notice shall not affect the validity thereof.

     (b) If any Lender shall obtain payment of any principal of or interest on any Loan
made by it to the Borrower under this Agreement (or reimbursement as to any Letter of
Credit) through the exercise of any right of set-off, banker’s lien or counterclaim or
similar right or otherwise, and, as a result of such payment, such Lender shall have
received a greater percentage of the principal or interest (or reimbursement) then due
hereunder by the Borrower to such Lender than the percentage received by any other Lenders,
it shall promptly (i) notify the Administrative Agent and each other Lender thereof and
(ii) purchase from such other Lenders participations in (or, if and to the extent specified
by such Lender, direct interests in) the Loans (or participations in Letters of Credit)
made by such other Lenders (or in interest due thereon, as the case may be) in such
amounts, and make such other adjustments from time to time as shall be equitable, to the
end that all the Lenders shall share the benefit of such excess payment (net of any
expenses which may be incurred by such Lender in obtaining or preserving such excess
payment) pro rata in accordance with the unpaid principal and/or interest on the Loans held
by each of the Lenders (or reimbursements of Letters of Credit). To such end all the
Lenders shall make appropriate adjustments among themselves (by the resale of
participations sold or otherwise) if such payment is rescinded or must otherwise be
restored. The Borrower agrees that any Lender so purchasing a participation (or direct
interest) in the Loans made by other Lenders (or in interest due thereon, as the case may
be) may exercise all rights of set-off, banker’s lien, counterclaim or similar rights with
respect to such participation as fully as if such Lender were a direct holder of Loans (or
Letters of Credit) in the amount of such participation. Nothing contained herein shall
require any Lender to exercise any such right or shall affect the right of any Lender to
exercise, and retain the benefits of exercising, any such right with respect to any other
indebtedness or obligation of the Borrower. If under any applicable bankruptcy, insolvency
or other similar law, any Lender receives a secured claim in lieu of a set-off to which
this Section 4.05 applies, such Lender shall, to the extent practicable, exercise its
rights in respect of such secured claim in a manner consistent with the rights of the
Lenders entitled under this Section 4.05 to share the benefits of any recovery on such
secured claim.

24

 

     Section 4.06 Taxes.

     (a)
Payments Free and Clear. Any and all payments by the Borrower hereunder shall be made, in
accordance with Section 4.01, free and clear of and without deduction for any and all present or
future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, excluding, in the case of each Lender, the Issuing Bank and the Administrative
Agent, taxes imposed on its income, and franchise or similar taxes imposed on it, by (i) any
jurisdiction (or political subdivision thereof) of which the Administrative Agent, the Issuing Bank
or such Lender, as the case may be, is a citizen or resident or in which such Lender has an
Applicable Lending Office, (ii) the jurisdiction (or any political subdivision thereof) in which
the Administrative Agent, the Issuing Bank or such Lender is organized, or (iii) any jurisdiction
(or political subdivision thereof) in which such Lender, the Issuing Bank or the Administrative
Agent is presently doing business which taxes are imposed solely as a result of doing business in
such jurisdiction (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings
and liabilities being hereinafter referred to as “Taxes”). If the Borrower shall be required by
law to deduct any Taxes from or in respect of any sum payable hereunder to the Lenders, the Issuing
Bank or the Administrative Agent (i) the sum payable shall be increased by the amount necessary so
that after making all required deductions (including deductions applicable to additional sums
payable under this Section 4.06) such Lender, the Issuing Bank or
the Administrative Agent (as the case may be) shall receive an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower shall make such deductions
and (iii) the Borrower shall pay the full amount deducted to the relevant taxing authority or other
Governmental Authority in accordance with applicable law.

     (b)
Other Taxes. In addition, to the fullest extent permitted by applicable law, the Borrower
agrees to pay any present or future stamp or documentary taxes or any other excise or property
taxes, charges or similar levies that arise from any payment made hereunder or from the execution,
delivery or registration of, or otherwise with respect to, this Agreement, any Assignment and
Assumption or any Security Instrument (hereinafter referred to as “Other Taxes”).

     (c)
Indemnification. To the fullest extent permitted by applicable law, the Borrower will
indemnify each Lender, the Issuing Bank and the Administrative Agent for the full amount of Taxes
and Other Taxes (including, but not limited to, any Taxes or Other Taxes imposed by any
Governmental Authority on amounts payable under this Section 4.06) paid by such Lender, the Issuing
Bank or the Administrative Agent (on their behalf or on behalf of any Lender), as the case may be,
and any liability (including penalties, interest and expenses) arising therefrom or with respect
thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted unless the
payment of such Taxes was not correctly or legally asserted and such Lender’s payment of such Taxes
or Other Taxes was the result of its gross negligence or willful misconduct. Any payment pursuant
to such indemnification shall be made within thirty (30) days after the date any Lender, the
Issuing Bank or the Administrative Agent, as the case may be, makes written demand therefor. If
any Lender, Issuing Bank or the Administrative Agent receives a refund or credit in respect of any
Taxes or Other Taxes for which such Lender, Issuing Bank or the Administrative Agent has received
payment from the Borrower, it shall promptly notify the Borrower of such refund or credit and
shall, if no Default has occurred and is continuing, within thirty (30) days after receipt of a
request by the Borrower (or promptly upon receipt, if the Borrower has requested application for
such refund or credit pursuant hereto), pay an amount equal to such refund or credit to the
Borrower without interest (but with any interest so refunded or credited), provided, that the
Borrower, upon the request of such

25

 

Lender, the Issuing Bank or the Administrative Agent, agrees to return such refund or credit
(plus penalties, interest or other charges) to such Lender or the Administrative Agent in the event
such Lender or the Administrative Agent is required to repay such refund or credit.

     (d) Lender Representations.

     (i) Each Lender represents that it is either (1) a banking association or
corporation organized under the laws of the United States of America or any state thereof
or (2) it is entitled to complete exemption from United States withholding tax imposed on
or with respect to any payments, including fees, to be made to it pursuant to this
Agreement (A) under an applicable provision of a tax convention to which the United States
of America is a party or (B) because it is acting through a branch, agency or office in
the United States of America and any payment to be received by it hereunder is effectively
connected with a trade or business in the United States of America. Each Lender that is
not a banking association or corporation organized under the laws of the United States of
America or any state thereof agrees to provide to the Borrower and the Administrative
Agent on the Closing Date, or on the date of its delivery of the Assignment and Assumption
pursuant to which it becomes a Lender, and at such other times as required by United
States law or as the Borrower or the Administrative Agent shall reasonably request, two
accurate and complete original signed copies of either (1) Internal Revenue Service Form
W-8ECI (or successor form) certifying that all payments to be made to it hereunder will be
effectively connected to a United States trade or business (the “Form W-8ECI
Certification”) or (2) Internal Revenue Service Form W-8BEN (or successor form) certifying
that it is entitled to the benefit of a provision of a tax convention to which the United
States of America is a party which completely exempts from United States withholding tax
all payments to be made to it hereunder (the “Form W-8BEN Certification”). In addition,
each Lender agrees that if it previously filed a Form W-8ECI Certification, it will
deliver to the Borrower and the Administrative Agent a new Form W-8ECI Certification prior
to the first payment date occurring in each of its subsequent taxable years; and if it
previously filed a Form W-8BEN Certification, it will deliver to the Borrower and the
Administrative Agent a new certification prior to the first payment date falling in the
third year following the previous filing of such certification. Each Lender also agrees to
deliver to the Borrower and the Administrative Agent such other or supplemental forms as
may at any time be required as a result of changes in applicable law or regulation in
order to confirm or maintain in effect its entitlement to exemption from United States
withholding tax on any payments hereunder, provided that the circumstances of such Lender
at the relevant time and applicable laws permit it to do so. If a Lender determines, as a
result of any change in either (i) a Governmental Requirement or (ii) its circumstances,
that it is unable to submit any form or certificate that it is obligated to submit
pursuant to this Section 4.06, or that it is required to withdraw or cancel any such form
or certificate previously submitted, it shall promptly notify the Borrower and the
Administrative Agent of such fact. If a Lender is organized under the laws of a
jurisdiction outside the United States of America, unless the Borrower and the
Administrative Agent have received a Form W-8BEN Certification or Form W-8ECI
Certification satisfactory to them indicating that all payments to be made to such Lender
hereunder are not subject to United States withholding tax, the Borrower shall withhold
taxes from such payments at the applicable statutory rate. Each Lender agrees to indemnify
and hold harmless the Borrower or Administrative Agent, as applicable, from any United
States taxes, penalties, interest and other expenses, costs and losses incurred or payable
by (i) the Administrative Agent as a result of such Lender’s

26

 

failure to submit any form or certificate that it is required to provide pursuant to this
Section 4.06 or (ii) the Borrower or the Administrative Agent as a result of their
reliance on any such form or certificate which such Lender has provided to them pursuant
to this Section 4.06.

     (ii) For any period with respect to which a Lender has failed to provide the Borrower
with the form required pursuant to this Section 4.06, if any (other than if such failure
is due to a change in a Governmental Requirement occurring subsequent to the date on which
a form originally was required to be provided), such Lender shall not be entitled to
indemnification under this Section 4.06 with respect to taxes imposed by the United States
which taxes would not have been imposed but for such failure to provide such forms;
provided, however, that if a Lender, which is otherwise exempt from or subject to a
reduced rate of withholding tax, becomes subject to taxes because of its failure to
deliver a form required hereunder, the Borrower shall take such steps as such Lender shall
reasonably request to assist such Lender to recover such taxes.

     (iii) Any Lender claiming any additional amounts payable pursuant to this Section
4.06 shall use reasonable efforts (consistent with legal and regulatory restrictions) to
file any certificate or document requested by the Borrower or the Administrative Agent or
to change the jurisdiction of its Applicable Lending Office or to contest any tax imposed
if the making of such a filing or change or contesting such tax would avoid the need for
or reduce the amount of any such additional amounts that may thereafter accrue and would
not, in the sole determination of such Lender, be otherwise disadvantageous to such
Lender.

ARTICLE V

Capital Adequacy

     Section 5.01 Additional Costs.

     (a) LIBOR Regulations, etc. The Borrower shall pay directly to each Lender from time to time
such amounts as such Lender may determine to be necessary to compensate such Lender for any costs
which it determines are attributable to its making or maintaining of any LIBOR Loans or issuing or
participating in Letters of Credit hereunder or its obligation to make any LIBOR Loans or issue or
participate in any Letters of Credit hereunder, or any reduction in any amount receivable by such
Lender hereunder in respect of any of such LIBOR Loans, Letters of Credit (such increases in costs
and reductions in amounts receivable being herein called “Additional Costs”), resulting from any
Regulatory Change which: (i) changes the basis of taxation of any amounts payable to such Lender
under this Agreement or any Note in respect of any of such LIBOR Loans or Letters of Credit (other
than taxes imposed on the overall net income of such Lender or of its Applicable Lending Office for
any of such LIBOR Loans by the jurisdiction in which such Lender has its principal office or
Applicable Lending Office); or (ii) imposes or modifies any reserve, special deposit, minimum
capital, capital ratio or similar requirements relating to any extensions of credit or other assets
of, or any deposits with or other liabilities of such Lender, or the Commitment or Loans of such
Lender or the London interbank
market; or (iii) imposes any other condition affecting this Agreement or any Note (or any of
such extensions of credit or liabilities) or such Lender’s Commitment or Loans. Each Lender will
notify the Administrative Agent and the Borrower of any event occurring after the Closing Date
which will entitle such Lender to compensation pursuant to this Section 5.01(a) as promptly as
practicable after it obtains knowledge thereof and determines to request such compensation, and
will designate a different Applicable Lending Office for the Loans of such Lender affected by

27

 

such event if such designation will avoid the need for, or reduce the amount of, such compensation
and will not, in the sole opinion of such Lender, be disadvantageous to such Lender, provided that
such Lender shall have no obligation to so designate an Applicable Lending Office located in the
United States. If any Lender requests compensation from the Borrower under this Section 5.01(a),
the Borrower may, by notice to such Lender, suspend the obligation of such Lender to make
additional Loans of the Type with respect to which such compensation is requested until the
Regulatory Change giving rise to such request ceases to be in effect (in which case the provisions
of Section 5.04 shall be applicable).

     (b) Regulatory Change. Without limiting the effect of the provisions of Section 5.01(a), in
the event that at any time (by reason of any Regulatory Change or any other circumstances arising
after the Closing Date affecting (i) any Lender, (ii) the London interbank market or (iii) such
Lender’s position in such market), the Adjusted LIBOR, as determined in good faith by such Lender,
will not adequately and fairly reflect the cost to such Lender of funding its LIBOR Loans, then, if
such Lender so elects, by notice to the Borrower and the Administrative Agent, the obligation of
such Lender to make additional LIBOR Loans shall be suspended until such Regulatory Change or other
circumstances ceases to be in effect (in which case the provisions of Section 5.04 shall be
applicable).

     (c) Capital Adequacy. Without limiting the effect of the foregoing provisions of this Section
5.01 (but without duplication), the Borrower shall pay directly to any Lender from time to time on
request such amounts as such Lender may reasonably determine to be necessary to compensate such
Lender or its parent or holding company for any costs which it determines are attributable to the
maintenance by such Lender or its parent or holding company (or any Applicable Lending Office),
pursuant to any Governmental Requirement following any Regulatory Change, of capital in respect of
its Commitment, its Note, or its Loans or any interest held by it in any Letter of Credit, such
compensation to include, without limitation, an amount equal to any reduction of the rate of return
on assets or equity of such Lender or its parent or holding company (or any Applicable Lending
Office) to a level below that which such Lender or its parent or holding company (or any Applicable
Lending Office) could have achieved but for such Governmental Requirement. Such Lender will notify
the Borrower that it is entitled to compensation pursuant to this Section 5.01(c) as promptly as
practicable after it determines to request such compensation.

     (d) Compensation Procedure. Any Lender notifying the Borrower of the incurrence of Additional
Costs under this Section 5.01 shall in such notice to the Borrower and the Administrative Agent set
forth in reasonable detail the basis and amount of its request for compensation. Determinations and
allocations by each Lender for purposes of this Section 5.01 of the effect of any Regulatory Change
pursuant to Section 5.01(a) or (b), or of the effect of capital maintained pursuant to Section
5.01(c), on its costs or rate of return of maintaining Loans or its obligation to make Loans or
issue Letters of Credit, or on amounts receivable by it in respect of Loans or Letters of Credit,
and of the amounts required to compensate such Lender under this Section 5.01, shall be conclusive
and binding for all purposes, provided that such
determinations and allocations are made on a reasonable basis. Any request for additional
compensation under this Section 5.01 shall be paid by the Borrower within thirty (30) days of the
receipt by the Borrower of the notice described in this Section 5.01(d).

     Section 5.02 Limitation on LIBOR Loans. Anything herein to the contrary notwithstanding, if,
on or prior to the determination of any Adjusted LIBOR for any Interest Period:

28

 

     (a) the Administrative Agent determines (which determination shall be conclusive, absent
manifest error) that quotations of interest rates for the relevant deposits referred to in the
definition of “Adjusted LIBOR” in Section 1.02 are not being provided in the relevant amounts or
for the relevant maturities for purposes of determining rates of interest for LIBOR Loans as
provided herein; or

     (b) the Administrative Agent determines (which determination shall be conclusive, absent
manifest error) that the relevant rates of interest referred to in the definition of “Adjusted
LIBOR” in Section 1.02 upon the basis of which the rate of interest for LIBOR Loans for such
Interest Period is to be determined are not sufficient to adequately cover the cost to the Lenders
of making or maintaining LIBOR Loans; then the Administrative Agent shall give the Borrower prompt
notice thereof, and so long as such condition remains in effect, the Lenders shall be under no
obligation to make additional LIBOR Loans.

     Section 5.03 Illegality. Notwithstanding any other provision of this Agreement, in the event
that it becomes unlawful for any Lender or its Applicable Lending Office to honor its obligation to
make or maintain LIBOR Loans hereunder, then such Lender shall promptly notify the Borrower thereof
and such Lender’s obligation to make LIBOR Loans shall be suspended until such time as such Lender
may again make and maintain LIBOR Loans (in which case the provisions of Section 5.04 shall be
applicable).

     Section 5.04 Base Rate Loans Pursuant to Sections 5.01, 5.02 and 5.03. If the obligation of
any Lender to make LIBOR Loans shall be suspended pursuant to Sections 5.01, 5.02 or 5.03
(“Affected Loans”), all Affected Loans which would otherwise be made by such Lender shall be made
instead as Base Rate Loans (and, if an event referred to in Section 5.01(b) or Section 5.03 has
occurred and such Lender so requests by notice to the Borrower, all Affected Loans of such Lender
then outstanding shall be automatically converted into Base Rate Loans on the date specified by
such Lender in such notice) and, to the extent that Affected Loans are so made as (or converted
into) Base Rate Loans, all payments of principal which would otherwise be applied to such Lender’s
Affected Loans shall be applied instead to its Base Rate Loans.

     Section 5.05 Compensation. The Borrower shall pay to each Lender within thirty (30) days of
receipt of written request of such Lender (which request shall set forth, in reasonable detail, the
basis for requesting such amounts and which shall be conclusive and binding for all purposes
provided that such determinations are made on a reasonable basis), such amount or amounts as shall
compensate it for any loss, cost, expense or liability which such Lender determines are
attributable to:

     (a) any payment, prepayment or conversion of a LIBOR Loan properly made by such Lender or the
Borrower for any reason (including, without limitation, the acceleration of the Loans pursuant to
Section 10.02) on a date other than the last day of the Interest Period for such Loan; or

     (b) any failure by the Borrower for any reason (including but not limited to, the failure of
any of the conditions precedent specified in Article VI to be satisfied) to borrow, continue or
convert a LIBOR Loan from such Lender on the date for such borrowing, continuation or conversion
specified in the relevant notice given pursuant to Section 2.02(c).

Without limiting the effect of the preceding sentence, such compensation shall include an amount
equal to the excess, if any, of (i) the amount of interest which would have accrued on the
principal amount so paid, prepaid or converted or not borrowed for the period from the date of such
payment, prepayment or conversion or failure to borrow to the last day of the Interest Period for
such Loan (or, in the case of a failure to borrow, the Interest Period for such Loan which would
have commenced on the date specified

29

 

for such borrowing) at the applicable rate of interest for such Loan provided for herein over (ii)
the interest component of the amount such Lender would have bid in the London interbank market for
Dollar deposits of leading banks in amounts comparable to such principal amount and with maturities
comparable to such period (as reasonably determined by such Lender).

ARTICLE VI

Conditions Precedent

     Section 6.01 Initial Funding. The obligation of the Lenders to make the Initial Funding is
subject to the receipt by the Administrative Agent and the Lenders of all fees then due and payable
pursuant to Section 2.04 on or before the Closing Date and the receipt by the Administrative Agent
of the following documents and satisfaction of the other conditions provided in this Section 6.01,
each of which shall be satisfactory to the Sole Lead Arranger in form and substance (other than
each item, if any, listed on Schedule 6.01, which items are hereby permitted to be delivered after
the Closing Date but not later than the date for delivery of each such item specified on Schedule
6.01, or such later date as the Administrative Agent may agree):

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

     (b) Certificates of the appropriate state agencies with respect to the existence, qualification and
good standing of the Obligors.

     (c) The Notes, duly completed and executed for each Lender.

     (d) The Security Instruments, duly completed and executed in sufficient number of
counterparts; all original certificates of partnership units or members’ equity, and blank stock
powers and Intercompany Notes duly endorsed as required under such Security Instruments.

     (e) An opinion of counsel to the Obligors acceptable to the Sole Lead Arranger, with respect
to the existence of the Obligors, due authorization and execution of the Loan Documents,
enforceability of the Loan Documents, including without limitation the Security Instruments, and
other matters incident to the transactions herein contemplated as the Sole Lead Arranger may
reasonably request, each in form and substance satisfactory to the Sole Lead Arranger.

     (f) A certificate of insurance coverage of the Obligors evidencing that the Obligors are
carrying insurance in accordance with Section 7.17 and Section 8.03(b).

30

 

     (g) Appropriate UCC search certificates and other evidence satisfactory to the Sole
Lead Arranger with respect to the Obligors’ Properties reflecting no prior Liens, other than
Excepted Liens.

     (h) A certificate of a Responsible Officer certifying that (i) no Default or Event of
Default exists or would result from the Initial Funding, and (ii) since December 31, 2005, there
has occurred no Material Adverse Effect.

     (i) Satisfactory review by Sole Lead Arranger of all Material Agreements.

     (j) All authorizations, approvals or consents as may be necessary for the execution,
delivery and performance by any Obligor under this Agreement.

     (k) From any Obligor (other than Borrower) a Guaranty Agreement executed by
such Obligor.

     (l) A letter from CT Corporation System, Inc., or other agent acceptable to the
Administrative Agent, accepting service of process in the State of New York on behalf of the
Obligors not otherwise qualified to transact business in New York

     (m) Such other assurances, certificates, documents, consents or opinions as the
Administrative Agent or the Required Lenders reasonably may require.

     (n) The Borrower shall have received the net proceeds of a public offering of limited
partnership interests of the Borrower contemplated by the Form S-1 in the amount of at least
$25,000,000.

     Section 6.02 Initial and Subsequent Loans and Letters of Credit. The obligation of the
Lenders to make Loans to the Borrower upon the occasion of each borrowing hereunder and to issue,
renew, extend or reissue Letters of Credit (including the Initial Funding) is subject to the
further conditions precedent that, as of the date of such Loans and after giving effect thereto:

     (a) no Default shall have occurred and be continuing;

     (b) no Material Adverse Effect shall have occurred; and

     (c) the representations and warranties made by the Borrower in Article VII and in
the Security Instruments shall be true on and as of the date of the making of such Loans or
issuance, renewal, extension or reissuance of a Letter of Credit with the same force and effect as
if made on and as of such date and following such new borrowing, except to the extent such
representations and warranties are expressly limited to an earlier date.

     Each request for a borrowing or issuance, renewal, extension or reissuance of a Letter of
Credit by the Borrower hereunder shall constitute a certification by the Borrower to the effect set
forth in Section 6.02(c) (both as of the date of such notice and, unless the Borrower otherwise
notifies the Administrative Agent prior to the date of and immediately following such borrowing or
issuance, renewal, extension or reissuance of a Letter of Credit as of the date thereof).

     Section 6.03 Certain Loans and Letters of Credit. The obligation of the Lenders to make Loans
to the Borrower upon the occasion of each borrowing hereunder and to issue, renew, extend or
reissue Letters of Credit (including the Initial Funding), in each case if for the purposes of
acquiring or

31

 

carrying limited partnership units of Atlas Pipeline Partners, is subject to the further conditions
precedent that the Borrower and the Administrative Agent, on behalf of the Lenders, shall have
executed and delivered a Federal Reserve Form U-1 provided for in the Margin Regulations, which
shall contain statements that, in the judgement of the Administrative Agent, permit the
transactions contemplated by such Loan or Letter of Credit to be made in accordance with the Margin
Regulations.

     Section 6.04 Conditions Precedent for the Benefit of Lender. All conditions precedent to the
obligations of the Lenders to make any Loan are imposed hereby solely for the benefit of the
Lenders, and no other Person may require satisfaction of any such condition precedent or be
entitled to assume that the Lenders will refuse to make any Loan in the absence of strict
compliance with such conditions precedent.

     Section 6.05 No Waiver. No waiver of any condition precedent shall preclude the
Administrative Agent or the Lenders from requiring such condition to be met prior to making any
subsequent Loan or preclude the Lenders from thereafter declaring that the failure of the Borrower
to satisfy such condition precedent constitutes a Default.

ARTICLE VII

Representations and Warranties

     Each of the Obligors represents and warrants to the Administrative Agent and the Lenders that
(each representation and warranty herein is given as of the Closing Date and shall be deemed
repeated and reaffirmed on the dates of each borrowing and issuance, renewal, extension or
reissuance of a Letter of Credit as provided in Section 6.02):

     Section 7.01 Corporate Existence. Each of the Obligors: (i) is a limited liability company or
limited partnership duly organized, formed, legally existing and in good standing under the laws of
the jurisdiction of its incorporation or formation, as applicable; (ii) has all requisite
organizational power, and has all material governmental licenses, authorizations, consents and
approvals necessary to own its assets and carry on its business as now being or as proposed to be
conducted; and (iii) is qualified to do business in all jurisdictions in which the nature of the
business conducted by it makes such qualification necessary and where failure so to qualify would
have a Material Adverse Effect.

     Section 7.02 Financial Condition. The audited consolidated balance sheet of APL General
Partner and its consolidated subsidiaries as at December 31, 2005, the related consolidated
statement of income, partners’ equity and cash flow of APL General Partner and its consolidated
subsidiaries for the fiscal year ended on said date, in each case including, on a consolidated
basis, Atlas Pipeline Partners and its consolidated subsidiaries, heretofore furnished to each of
the Lenders, are complete and correct and fairly present the consolidated financial condition of
APL General Partner and its consolidated subsidiaries including, on a consolidated basis, Atlas
Pipeline Partners and its consolidated subsidiaries, as at said date and the results of its
operations for the fiscal year on said date, all in accordance with GAAP, as applied on a
consistent basis. Except as reflected or referred to in such Financial Statements or the unaudited
financial statements of APL General Partner as at March 31, 2006, neither the Borrower, nor APL
General Partner, nor any Subsidiary of the Borrower has on the Closing Date any material Debt,
contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or
unrealized or anticipated losses from any unfavorable commitments. Since the date of the Financial
Statements, neither the business nor the Properties of APL General Partner, or any Subsidiary,
including Atlas Pipeline Partners and its consolidated subsidiaries, have been materially and
adversely affected.

     Section 7.03 Litigation. Except as disclosed to the Lenders in Schedule 7.03 hereto, there is
no litigation, legal, administrative or arbitral proceeding, investigation or other action of any
nature

32

 

pending or, to the knowledge of the Obligors, threatened against or affecting the Obligors or any
Subsidiary which involves the possibility of any judgment or liability against any Obligor or any
Subsidiary not fully covered by insurance (except for normal deductibles), and which would have a
Material Adverse Effect.

     Section 7.04 No Breach. Neither the execution and delivery of the Loan Documents, nor
compliance with the terms and provisions hereof, will conflict with or result in a breach of, or
require any consent which has not been obtained as of the Closing Date under, the respective
charter, limited partnership agreement, articles of organization or by-laws of the Obligors or any
Subsidiary, or any Governmental Requirement, or any agreement or instrument to which any Obligor or
any Subsidiary is a party or by which it is bound or to which it or its Properties are subject, or
constitute a default under any such agreement or instrument, or result in the creation or
imposition of any Lien upon any of the revenues or assets of the Obligor or any Subsidiary pursuant
to the terms of any such agreement or instrument, other than the Liens created by the Loan
Documents.

     Section 7.05 Authority. Each Obligor and each Subsidiary thereof has all necessary
organizational power and authority to execute, deliver and perform its obligations under the Loan
Documents to which it is a party; and the execution, delivery and performance by each Obligor of
the Loan Documents to which it is a party have been duly authorized by all necessary organizational
action on its part; and the Loan Documents constitute the legal, valid and binding obligations of
each Obligor, enforceable in accordance with their terms.

     Section 7.06 Approvals. No authorizations, approvals or consents of, and no filings or
registrations with, any Governmental Authority or any other Person are necessary for the
execution, delivery or performance by any Obligor of the Loan Documents to which it is a party
or for the validity or enforceability thereof, except for the recording and filing of the Security
Instruments as required by this Agreement.

     Section 7.07 Use of Loans. The proceeds of the Loans shall be used (i) for general business
purposes of the Obligors, including, without limitation, working capital, purchase of debt or
limited partnership units of Atlas Pipeline Partners, fund general partner contributions of APL
General Partner to Atlas Pipeline Partners and purchase of a Permitted Acquisition, (ii) to pay
fees and expenses related to the Facility, and (iii) for Letters of Credit to support the
obligations of the Obligors. Neither the Borrower nor any other Obligor is engaged principally, or
as one of its important activities, in the business of extending credit for the purpose, whether
immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Margin
Regulations) and no part of the proceeds of any Loan hereunder will be used to buy or carry any
margin stock, except limited partnership units of Atlas Pipeline Partners in compliance with the
Margin Regulations and Section 6.03.

     Section 7.08 ERISA.

     (a) Each Obligor, each Subsidiary and each ERISA Affiliate have complied in all material
respects with ERISA and, where applicable, the Code regarding each Plan.

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

     (c) No act, omission or transaction has occurred which could result in imposition on any
Obligor, any Subsidiary or any ERISA Affiliate (whether directly or indirectly) of (i) either a
civil penalty assessed pursuant to section 502(c), (i) or (1) of ERISA or a tax imposed pursuant to

33

 

Chapter 43 of Subtitle D of the Code or (ii) breach of fiduciary duty liability damages under
section 409 of ERISA.

     (d) No contingent obligations remain due to the termination of any Plan (other than a defined
contribution plan) or any trust created under any such Plan since September 2, 1974. The only Plan
that has been terminated was for The Atlas Group, Inc. No liability to the PBGC (other than for the
payment of current premiums which are not past due) by any Obligor, any Subsidiary or any ERISA
Affiliate has been or is expected by any Obligor, any Subsidiary or any ERISA Affiliate to be
incurred with respect to any Plan. No ERISA Event with respect to any Plan has occurred.

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

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

     (g) None of the Obligors, any Subsidiary or any ERISA Affiliate sponsors, maintains, or
contributes to an employee welfare benefit plan, as defined in section 3(l) of ERISA, including,
without limitation, any such plan maintained to provide benefits to former employees of such
entities, that may not be terminated by an Obligor, a Subsidiary or any ERISA Affiliate in its sole
discretion at any time without any material liability.

     (h) None of the Obligors, any Subsidiary or any ERISA Affiliate sponsors, maintains or
contributes to, or has at any time in the preceding six calendar years, sponsored, maintained or
contributed to, any Multiemployer Plan.

     (i) None of the Obligors, any Subsidiary or any ERISA Affiliate is required to provide
security under section 401 (a)(29) of the Code due to a Plan amendment that results in an increase
in current liability for the Plan.

     Section 7.09 Taxes. Except as set forth on Schedule 7.09, each Obligor and its Subsidiaries
have filed all United States federal income tax returns and all other tax returns which are
required to be filed by them, or otherwise obtained appropriate extensions to file, and have paid
all material taxes due pursuant to such returns or pursuant to any assessment received by any
Obligor or any Subsidiary, except such taxes that are being contested in good faith by appropriate
proceedings and for which such Obligor or Subsidiary, as applicable, has set aside on its books
adequate reserves in accordance with GAAP. The charges, accruals and reserves on the books of each
Obligor and its Subsidiaries in respect of taxes and other governmental charges are, in the opinion
of the Borrower, adequate. No tax lien has been filed and, to the knowledge of the Obligors, no
claim is being asserted with respect to any such tax, fee or other charge.

     Section 7.10 Titles, etc. Except as otherwise set forth on Schedule 7.10:

34

 

     (a) Each of the Obligors has good, sufficient and clear title to its material Properties, free
and clear of all adverse possession or abandonment claims and Liens, except Excepted Liens.

     (b) All leases, rights of way, permits, licenses and agreements necessary for the conduct of
the business of each Obligor are valid and subsisting, in full force and effect and there exists no
default or event or circumstance which with the giving of notice or the passage of time or both
would give rise to a default under any such lease rights of way, permits, licenses, which would
affect in any material respect the conduct of the business of any Obligor.

     (c) The rights, Properties and other assets presently owned, leased or licensed by each
Obligor, including, without limitation, all easements and rights of way, include all rights,
Properties and other assets necessary to permit each Obligor to conduct its business in all
material respects in the same manner as its business has been conducted prior to the Closing Date.

     (d) All of the assets and Properties of each Obligor which are reasonably necessary for the
operation of its business are in good working condition and are maintained in accordance with
prudent business standards.

     Section 7.11 No Material Misstatements. To the Borrower’s knowledge, (i) no written
information, statement, exhibit, certificate, document or report (not including financial
projections referred to in clause (ii)) furnished to the Administrative Agent and the Lenders (or
any of them) by any Obligor in connection with the negotiation of this Agreement contains any
material misstatement of fact or omitted to state a material fact or any fact necessary to make the
statement contained therein not materially misleading in the light of the circumstances in which
made and (ii) all financial projections concerning the Borrower and its Subsidiaries furnished to
the Administrative Agent and the Lenders (or any of them) have been prepared in good faith based
upon reasonable assumptions. There is no fact peculiar to any Obligor which has a Material Adverse
Effect or in the future is reasonably likely to have a Material Adverse Effect and which has not
been set forth in this Agreement or the other documents, certificates and statements furnished to
the Administrative Agent by or on behalf of the Obligors prior to, or on, the Closing Date in
connection with the transactions contemplated hereby.

     Section 7.12 Investment Company Act. None of the Obligors is an “investment company” or a
company “controlled” by an “investment company,” within the meaning of the Investment Company Act
of 1940, as amended.

     Section 7.13 Capitalization of General Partner and Subsidiaries.

     (a) To the Borrower’s knowledge, all issued and outstanding membership units of the General
Partner have been validly issued and are fully paid and nonassessable and are owned by and issued
to the Persons shown on Schedule 7.13 attached hereto.

     (b) Neither the Borrower nor any Subsidiary of the Borrower owns directly or indirectly any
capital stock, membership interest or partnership interest of any other Person, other than
Borrower’s ownership of the Subsidiaries described on Schedule 7.13. The Borrower and each
Subsidiary of the Borrower has good and marketable title to all securities of the Subsidiaries
issued to it, free and clear of all liens and encumbrances, and all such securities have been duly
and validly issued and are fully paid and nonassessable. The authorized securities and ownership of
the Subsidiaries of the Borrower is as shown on Schedule 7.13 attached hereto and made a part
hereof. There are no Subsidiaries of the Borrower other than as disclosed on Schedule 7.13.

35

 

     Section 7.14 Location of Business and Offices. Each Obligor’s principal place of business and
chief executive offices are located at the address stated on the signature page of this Agreement.

     Section 7.15 Defaults under Material Agreements. None of the Obligors is in default nor has
any event or circumstance occurred which, but for the expiration of any applicable grace period or
the giving of notice, or both, would constitute a default under any Material Agreement to which any
Obligor or any Subsidiary is a party or by which any Obligor or any Subsidiary is bound. No Default
hereunder has occurred and is continuing.

     Section 7.16 Environmental Matters. Except as would not have a Material Adverse Effect (or
with respect to clauses (c), (d) and (e) below, where the failure to take such actions would not
have a Material Adverse Effect):

     (a) Neither any Property of any Obligor or its Subsidiaries nor the operations
conducted thereon violate any order or requirement of any court or Governmental
Authority or any Environmental Laws;

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

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

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

     (e) The Obligors and their Subsidiaries have taken all steps reasonably necessary to determine
and have determined that no hazardous substances, solid waste, or oil and gas exploration and
production wastes, have been disposed of or otherwise released and there has been no threatened
release of any hazardous substances on or to any Property of any Obligor or its Subsidiaries except
in compliance with Environmental Laws and so as not to pose an imminent and substantial
endangerment to public health or welfare or the environment; and

     (f) None of the Obligors or their Subsidiaries has any known contingent liability in
connection with any release or threatened release of any oil, hazardous substance or solid waste
into the environment.

36

 

     Section 7.17 Compliance with Laws. None of the Obligors nor their Subsidiaries has violated
any Governmental Requirement or failed to obtain any license, permit, franchise or other
governmental authorization necessary for the ownership of any of its Properties or the conduct of
its business, which violation or failure would have (in the event such violation or failure were
asserted by any Person through appropriate action) a Material Adverse Effect. Except for such acts
or failures to act as would not have a Material Adverse Effect, the Properties of the Obligors (and
properties unitized therewith) have been maintained, operated and developed in a good and
workmanlike manner and in conformity with all applicable laws and all rules, regulations and orders
of all duly constituted authorities having jurisdiction and in conformity with the provisions of
all leases, subleases or other contracts comprising a part of and forming a part of the
Properties.

     Section 7.18 Insurance. Schedule 7.18 attached hereto contains an accurate and complete
description of all material policies of fire, liability, workers’ compensation and other forms of
insurance owned or held by the Obligors. All such policies are in full force and effect, all
premiums with respect thereto covering all periods up to and including the date of the closing have
been paid, and no notice of cancellation or termination has been received with respect to any such
policy. Such policies are sufficient for compliance with all requirements of law and of all
agreements to which any Obligor is a party; are valid, outstanding and enforceable policies;
provide adequate insurance coverage in at least such amounts and against at least such risks (but
including in any event public liability) as are usually insured against in the same general area by
companies engaged in the same or a similar business for the assets and operations of the Obligors;
will remain in full force and effect through the respective dates set forth in Schedule 7.18
without the payment of additional premiums; and will not in any way be affected by, or terminate or
lapse by reason of, the transactions contemplated by this Agreement. Schedule 7.18 identifies all
material risks, if any, which each Obligor and their respective general partner or sole member have
designated as being self-insured. None of the Obligors has been refused any insurance with respect
to its assets or operations, nor has its coverage been limited below usual and customary policy
limits, by an insurance carrier to which it has applied for any such insurance or with which it has
carried insurance during the last three years.

     Section 7.19 Hedging Agreements. Schedule 7.19 sets forth, as of the Closing Date, a true and
complete list of all Hedging Agreements (including commodity price swap agreements, forward
agreements or contracts of sale which provide for prepayment for deferred shipment or delivery of
oil, gas or other commodities) of the Obligors, the material terms thereof (including the type,
term, effective date, termination date and notional amounts or volumes), the net mark to market
value thereof, all credit support agreements relating thereto (including any margin required or
supplied), and the counter party to each such agreement.

     Section 7.20 Restriction on Liens. None of the Obligors is a party to any agreement or
arrangement (other than this Agreement and the Security Instruments), or subject to any order,
judgment, writ or decree, which either restricts or purports to restrict its ability to grant Liens
to other Persons on or in respect of their respective assets or Properties.

     Section 7.21 Material Agreements. Set forth on Schedule 7.21 is a complete list of all
agreements, indentures, purchase agreements, obligations in respect of letters of credit,
guarantees, partnership agreements, limited liability company agreements, other organizational
documents, joint venture agreements, and other instruments that (i) are material to the Obligors’
business, activities, and operation or ownership of such Obligors’ Property in effect or to be in
effect as of the Closing Date (other than the Hedging Agreements set forth on Schedule 7.19) or
(ii) provide for, evidence, secure or otherwise relate to any Debt of any such Obligor and all
obligations of any Obligor to issuers of surety or appeal bonds issued for account of any such
Obligor (the agreements referenced in clauses (i) and (ii) hereto, collectively, the “Material
Agreements”). Upon request by Administrative Agent, the Borrower

37

 

shall deliver, or caused to be delivered, to the Administrative Agent and the Lenders a complete
and correct copy of all such Material Agreements.

     Section 7.22 Relationship of Obligors. The Obligors are engaged in related businesses and each
Obligor is directly and indirectly dependent upon each other Obligor for and in connection with
their business activities and their financial resources; and each Obligor has determined,
reasonably and in good faith, that such Obligor will receive substantial direct and indirect
economic and financial benefits from the extensions of credit made under this Agreement, and such
extensions of credit are in the best interests of such Obligor, having regard to all relevant facts
and circumstances.

     Section 7.23 Solvency. Each Obligor and its Subsidiaries individually and on a consolidated
basis are not insolvent as such term is used and defined in the United States Bankruptcy Code.

ARTICLE VIII

Affirmative Covenants

     Each of the Obligors covenants and agrees that, so long as any of the Commitments are in
effect and until payment in full of all Loans hereunder, all interest thereon and all other amounts
payable by the Obligors hereunder:

     Section 8.01 Reporting Requirements. The Obligors shall deliver, or shall cause to be
delivered, to the Administrative Agent with sufficient copies of each for the Lenders:

     (a) Annual Financial Statements. As soon as available and in any event within ten (10) days
after the Borrower is required to file the same with the SEC, the audited consolidated and
consolidating statements of income, partners’ equity, changes in financial position and cash flow
for each of the Borrower and its Consolidated Subsidiaries for such fiscal year, and the related
consolidated and consolidating balance sheets of the Borrower and its Consolidated Subsidiaries as
at the end of such fiscal year, and setting forth in each case in comparative form the
corresponding figures for the preceding fiscal year, and accompanied by the related opinion of
independent public accountants of recognized national standing acceptable to the Administrative
Agent which opinion shall state that said financial statements fairly present the consolidated and
consolidating financial condition and results of operations of the Borrower and its Consolidated
Subsidiaries as at the end of, and for, such fiscal year and that such financial statements have
been prepared in accordance with GAAP, except for such changes in such principles with which the
independent public accountants shall have concurred and such opinion shall not contain a “going
concern” or like qualification or exception, but shall contain a certification stating that, in
making the examination necessary for their opinion, they obtained no knowledge, except as
specifically stated, of any Default; provided, however, references in this Section 8.01(a) and in
Section 8.01(b) to Consolidated Subsidiaries shall include, on a Consolidated basis, Atlas Pipeline
Partners and its Consolidated Subsidiaries.

     (b) Quarterly Financial Statements. As soon as available and in any event within twenty-five
(25) days after any the Borrower is required to file the same with the SEC, for of each of the
first three fiscal quarterly periods of each of its fiscal year for the Borrower and its
Consolidated Subsidiaries, consolidated and consolidating statements of income, partners’ equity,
changes in financial position and cash flow of the Borrower and its Consolidated Subsidiaries for
such period and for the period from the beginning of the respective fiscal year to the end of such
period, and the related consolidated and consolidating balance sheets as at the end of such period,
and setting forth in each case in comparative form the corresponding figures for the corresponding
period in the preceding fiscal year, accompanied by the certificate of a Responsible

38

 

Officer, which certificate shall state that said financial statements fairly present the
consolidated and consolidating financial condition and results of operations of the Borrower and
its Consolidated Subsidiaries in accordance with GAAP, as at the end of, and for, such period
(subject to normal year-end audit adjustments).

     (c) Notice of Default, Etc. Promptly after any Obligor knows that any Default or Event of
Default has occurred, a notice of such Default or Event of Default, describing the same in
reasonable detail and the action the Borrower or any Guarantor proposes to take with respect
thereto.

     (d) Other Accounting Reports. Promptly upon receipt thereof, a copy of each other report or
letter submitted to any Obligor by independent accountants in connection with any annual, interim
or special audit made by them of the books of such Obligor and its Subsidiaries, and a copy of any
response by such Obligor, or the general partner or sole member of such Obligor, to such letter or
report.

     (e) SEC Filings, Etc. Promptly upon its becoming available, each financial statement, report,
notice or proxy statement sent by the Borrower to its unitholders generally and each regular or
periodic report and any registration statement, prospectus or written communication (other than
transmittal letters) in respect thereof filed by the Borrower with or received by the Borrower in
connection therewith from any securities exchange or the SEC or any successor agency.

     (f) Hedging Agreements. As soon as available and in any event within fifteen Business Days
after the last day of each fiscal quarter, a report, in form and substance satisfactory to the
Administrative Agent, setting forth as of the last Business Day of such fiscal quarter a true and
complete list of all Hedging Agreements of the Obligors, the material terms thereof (including the
type, term, effective date, termination date and notional amounts), the net mark to market value
therefor, any new credit support agreements relating thereto not listed on Schedule 7.19, any
margin required or supplied under any credit support document, and the counter party to each such
agreement.

     (g) Post-Closing Requirements. All agreements, documents, instruments, or other items listed
on Schedule 6.01 on or prior to the date specified for delivery thereof, or such later date as the
Administrative Agent may agree.

     (h) Other Matters. From time to time such other information regarding the business, affairs
or financial condition of any Obligor (including, without limitation, any Plan or Multiemployer
Plan and any reports or other information required to be filed under ERISA) as any Lender or the
Administrative Agent may reasonably request.

     (i) Compliance Certificate. The Borrower will furnish to the Administrative Agent, at the time
it furnishes each set of financial statements pursuant to paragraph (a) or (b) above, a certificate
substantially in the form of Exhibit C executed by a Responsible Officer (i) certifying as to the
matters set forth therein and stating that no Default has occurred and is continuing (or, if any
Default has occurred and is continuing, describing the same in reasonable detail), and (ii) setting
forth in reasonable detail the computations necessary to determine whether the Borrower is in
compliance with Sections 9.13, 9.14, and 9.15, as of the end of the respective fiscal quarter or
fiscal year.

39

 

     Section 8.02 Litigation. The Obligors shall promptly give to the Administrative Agent notice
of any litigation or proceeding against or adversely affecting any such Obligor in which the amount
claimed exceeds Five Hundred Thousand Dollars ($500,000) or an aggregate of claims in excess of One
Million Dollars ($1,000,000) and is not otherwise covered in full by insurance (subject to normal
and customary deductibles and for which the insurer has not assumed the defense), or in which
injunctive or similar relief is sought. Each Obligor will promptly notify the Administrative Agent
and each of the Lenders of any claim, judgment, Lien or other encumbrance affecting any Property of
such Obligor or any Subsidiary if the value of the claim, judgment, Lien, or other encumbrance
affecting such Property shall exceed Five Hundred Thousand Dollars ($500,000) or an aggregate of
such claims in excess of One Million Dollars ($1,000,000).

     Section 8.03 Maintenance, Etc.

     (a) Generally. Except as permitted under Section 9.09, each Obligor shall preserve and
maintain its organization existence and all of its material rights, privileges and franchises; keep
books of record and account in which full, true and correct entries will be made of all dealings or
transactions in relation to its business and activities; comply with all Governmental Requirements
if failure to comply with such requirements will have a Material Adverse Effect; pay and discharge
all taxes, assessments and governmental charges or levies imposed on it or on its income or profits
or on any of its Property prior to the date on which penalties attach thereto, except for any such
tax, assessment, charge or levy the payment of which is being contested in good faith and by proper
proceedings and against which adequate reserves are being maintained; upon reasonable notice,
permit representatives of the Administrative Agent or any Lender, during normal business hours, to
examine, copy and make extracts from its books and records, to inspect its Properties, and to
discuss its business and affairs with its officers, all to the extent reasonably requested by such
Lender or the Administrative Agent (as the case may be); and keep, or cause to be kept, insured by
financially sound and reputable insurers all Property of a character usually insured by Persons
engaged in the same or similar business similarly situated against loss or damage of the kinds and
in the amounts customarily insured against by such Persons and carry such other insurance as is
usually carried by such Persons including, without limitation, environmental risk insurance to the
extent reasonably available.

     (b) Proof of Insurance. Contemporaneously with the delivery of the financial statements
required by Section 8.01(a) to be delivered for each year, the Borrower will furnish or cause to be
furnished to the Administrative Agent and the Lenders a certificate of insurance coverage from the
insurer in form and substance satisfactory to the Administrative Agent listing Administrative Agent
as “loss payee” and “additional insured” and, if requested, will furnish the Administrative Agent
and the Lenders copies of the applicable policies.

     (c) Properties. Each Obligor will cause to be done all things reasonably necessary to preserve
and keep in good repair, working order and efficiency all of its material Properties including,
without limitation, all equipment, machinery and facilities, and from time to time will make all
the reasonably necessary repairs, renewals and replacements so that at all times the state and
condition of its material Properties will be fully preserved and maintained, except to the
extent that such failure would not have a Material Adverse Effect. Each Obligor will promptly:
(i) pay and discharge, or make reasonable and customary efforts to cause to be paid and discharged,
all rentals, royalties, expenses and indebtedness accruing under the rights of way, licenses,
leases or other agreements affecting or pertaining to its material Properties, (ii) perform or make
reasonable and customary efforts to cause to be performed, in accordance with industry standards,
the obligations required by each and all of the rights of way, deeds, leases, sub-leases, contracts
and agreements affecting its interests in its material Properties, (iii) will do all other

40

 

things necessary to keep unimpaired, except for Liens described in Section 9.02, its rights with
respect to its material Properties. Each Obligor will operate its material Properties to be
operated in a careful and efficient manner in accordance with the practices of the industry and in
compliance with all applicable contracts and agreements and in compliance in all material respects
with all Governmental Requirements.

Section 8.04 Environmental Matters.

     (a) Establishment of Procedures. The Obligors will establish and implement such procedures as
may be reasonably necessary to continuously determine and assure that any failure of the following
does not have a Material Adverse Effect: (i) all Property of the Obligors and the operations
conducted thereon and other activities of the Obligors are in compliance with and do not violate
the requirements of any Environmental Laws, (ii) no Hydrocarbons, hazardous substances or solid
wastes are disposed of or otherwise released on or to any Property owned by any such party except
in compliance with Environmental Laws, (iii) no hazardous substance will be released on or to any
such Property in a quantity equal to or exceeding that quantity which requires reporting pursuant
to Section 103 of CERCLA, and (iv) no oil, oil and gas exploration and production wastes or
hazardous substance is released on or to any such Property so as to pose an imminent and
substantial endangerment to public health or welfare or the environment.

     (b) Notice of Action. The Obligors will promptly notify the Administrative Agent and the
Lenders in writing of any threatened action, investigation or inquiry by any Governmental Authority
of which any Obligor has knowledge in connection with any Environmental Laws, excluding routine
testing and corrective action which might result in the Borrower or any Subsidiary being liable for
the payment or performance of obligations in excess of Ten Thousand Dollars ($10,000) with respect
to any such event or in excess of One Hundred Thousand Dollars ($100,000) in the aggregate with
respect to all such events.

     (c) Future Acquisitions. In the event environmental remediation costs in excess of Five
Hundred Thousand Dollars ($500,000) are identified in respect of any acquisition of pipeline
Properties or other material Properties, the Obligors will provide environmental audits and tests
in form and scope as may be reasonably requested by the Administrative Agent and the Lenders (or as
otherwise required to be obtained by the Administrative Agent or the Lenders by any Governmental
Authority) in connection with such future acquisitions of pipeline Properties or other material
Properties.

     Section 8.05 Further Assurances. The Obligors will cure promptly any defects in the creation
and issuance of the Notes and the execution and delivery of the Security Instruments and this
Agreement. The Obligors at their expense will promptly execute and deliver to the Administrative
Agent upon request all such other documents, agreements and instruments to
comply with or accomplish the covenants and agreements of the Obligors in any Loan Document,
or to further evidence and more fully describe the collateral intended as security for the Notes,
or to correct any omissions in any Loan Document, or to state more fully the security obligations
set out herein or in any Loan Document, or to perfect, protect or preserve any Liens created
pursuant to any of the Security Instruments, or to make any recordings, to file any notices or
obtain any consents, all as may be necessary or appropriate in connection therewith.

     Section 8.06 Performance of Obligations. The Borrower will pay the Notes according to the
reading, tenor and effect thereof; the Guarantors will pay under the Guarantees according to the
terms thereof, and the Obligors will perform every act and discharge all of the obligations to be
performed and

41

 

discharged by them under this Agreement and any other Loan Document, at the time or times and in
the manner specified.

     Section 8.07 Title Curative. The Obligors shall cure, or cause to be cured, any title defects or
exceptions which are not Excepted Liens.

     Section 8.08 Additional Collateral.

     (a) Lien on Properties. At all times hereunder that the Indebtedness remains unpaid,
including whenever any Obligor acquires any additional Properties, Obligors shall grant to the
Administrative Agent for the benefit of the Lenders as security for the Indebtedness a
first-priority Lien interest (subject only to Excepted Liens) covering such Properties under the
Security Instruments. Such Lien will be created and perfected by and in accordance with the
provisions of mortgages, deeds of trust, security agreements and financing statements, or other
Security Instruments, all in form and substance satisfactory to the Administrative Agent in its
sole discretion and in sufficient executed (and acknowledged where necessary or appropriate)
counterparts for recording purposes.

     (b) Title Information. Concurrently with the granting of the Lien or other action referred to
in Section 8.08(a) above, the Borrower or such Obligor will provide to the Administrative Agent
title information in form and substance satisfactory to the Administrative Agent in its sole
discretion with respect to such Obligor’s interests in such Properties.

     (c) Legal Opinions. Promptly after the filing of any new Security Instrument in any state,
upon the request of the Administrative Agent, the Obligors will provide, or cause to be provided,
to the Administrative Agent an opinion addressed to the Administrative Agent for the benefit of the
Lenders in form and substance satisfactory to the Administrative Agent in its sole discretion from
counsel acceptable to Administrative Agent, stating that the Security Instrument is valid, binding
and enforceable in accordance with its terms and in legally sufficient form for such jurisdiction.

     (d) Subordination of Obligor’s Liens.

     (i) Each Obligor hereby subordinates and assigns in favor of Administrative
Agent for the benefit of the Lenders any and all liens, statutory or otherwise, and any
rights of offset contractual or otherwise it has or may have in the future against such
Obligors’ interests in its Properties and revenues attributable to its interest therein,
including the Contracts and Records (defined below).

     (ii) Any officer or employee of Administrative Agent is expressly granted the right
at its option upon not less than one (1) Business Day’s notice, to visit and inspect (a)
each Obligors’ offices, including all books and records, contracts and other agreements
that relate to its Properties, whether such data, information or agreements are in written
form or electronic format (the “Contracts and Records”), and to examine, take copies and
extracts therefrom, and (b) any of its Properties.

     (iii) Following the occurrence and during the continuance of an Event of Default,
each Obligor acknowledges that the Administrative Agent is expressly granted the right to
exercise any and all liens, statutory or otherwise, rights of offset or recoupment it has
and to receive the monies, income, proceeds, or benefits attributable to the Properties of
such Obligor, to hold the same as security for the Indebtedness and to

42

 

apply it on the principal and interest or other amounts owing on any of the Indebtedness,
whether or not then due, in such order or manner as Administrative Agent may elect.

     (iv) In the event of a foreclosure, deed in lieu, or other transfer of record or
beneficial ownership or operations of its Properties, each Obligor, as bailee, agrees to
cooperate and assist Administrative Agent and its officers, agents and counsel in the
peaceful transfer and delivery of such Contracts and Records to such party or parties as
Administrative Agent may in writing direct.

     (v) Following the occurrence and during the continuance of an Event of Default and
within thirty (30) days after receipt of notice from Administrative Agent, Obligors will
relinquish their respective rights to operate their pipelines and other material
Properties to the Administrative Agent or its designee.

     Section 8.09 Subordination of Intercompany Debt. Any Intercompany Notes or advances of any
Obligor howsoever evidenced by journal entries or otherwise now or hereafter owed to or held by any
other Obligor are hereby subordinated to the Indebtedness of such other Obligor to the Lenders, and
any document or instrument evidencing such loans or advances shall contain a legend giving notice
of such subordination. Any such Intercompany Notes or advances of any other Obligor due to such
Obligor, if the Administrative Agent so requests, shall be collected, enforced and received by such
Obligor as trustee for the Lenders and be paid over to the Administrative Agent for the account of
the Lenders on account of the Indebtedness but without affecting in any manner the liability of
such Obligor under the other provisions of this Agreement or any other Loan Document. Any Lien,
claim, right or other encumbrance on any property of any Obligor in favor of any other Obligor is
hereby subordinated in all respects to the Liens granted to the Administrative Agent for the
benefit of the Lenders.

     Section 8.10 Corporate Identity. The Borrower shall do or cause to be done (or refrain from
doing or causing to be done, as the case may be) all things necessary to ensure that the separate
legal identity of the Borrower and General Partner will at all times be respected and that neither
the Borrower, General Partner nor any of Borrower’s Subsidiaries will be liable for any
obligations, contractual or otherwise, of Atlas or any of the Atlas Direct Subsidiaries or other
entity in which Atlas or any Atlas Direct Subsidiaries owns any equity interest (other than the
Borrower, General Partner and Borrower’s Subsidiaries). Without limiting the foregoing, the
Borrower will (i) observe, and cause the General Partner to observe, all requirements,
procedures and formalities necessary or advisable in order that the Borrower will for all purposes
be considered a validly existing entity separate and distinct from the General Partner, (ii) not
permit any commingling of the assets of the General Partner, Atlas, or the Atlas Direct
Subsidiaries with assets of the Borrower or any of its Subsidiaries which would prevent such assets
of such persons from being readily distinguished from the assets of the Borrower and its
Subsidiaries and (iii) take reasonable and customary actions to ensure that creditors of the
General Partner, Atlas or the Atlas Direct Subsidiaries are aware that each such Person is an
entity separate and distinct from the Borrower and its Subsidiaries.

     Section 8.11 ERISA Information and Compliance. The Obligors will promptly furnish and will
cause the Subsidiaries and any ERISA Affiliate to promptly furnish to the Administrative Agent with
sufficient copies to the Lenders (i) promptly after the filing thereof with the United States
Secretary of Labor, the Internal Revenue Service or the PBGC, copies of each annual and other
report with respect to each Plan or any trust created thereunder, (ii) immediately upon becoming
aware of the occurrence of any ERISA Event or of any “prohibited transaction,” as described in
section 406 of ERISA or in section 4975 of the Code, in connection with any Plan or any trust
created thereunder, a written notice signed by a Responsible Officer specifying the nature thereof,
what action the Obligors, the Subsidiary or the ERISA Affiliate is taking or proposes to take with
respect thereto, and, when known, any action taken or

43

 

proposed by the Internal Revenue Service, the Department of Labor or the PBGC with respect thereto,
and (iii) immediately upon receipt thereof, copies of any notice of the PBGCs intention to
terminate or to have a trustee appointed to administer any Plan. With respect to each Plan (other
than a Multiemployer Plan), the Obligors will, and will cause each Subsidiary and ERISA Affiliate
to, (i) satisfy in full and in a timely manner, without incurring any late payment or underpayment
charge or penalty and without giving rise to any lien, all of the contribution and funding
requirements of section 412 of the Code (determined without regard to subsections (d), (e), (f) and
(k) thereof) and of section 302 of ERISA (determined without regard to sections 303, 304 and 306 of
ERISA), and (ii) pay, or cause to be paid, to the PBGC in a timely manner, without incurring any
late payment or underpayment charge or penalty, all premiums required pursuant to sections 4006 and
4007 of ERISA.

     Section 8.12 Restricted/Unrestricted Subsidiaries. Unless otherwise consented to by Required
Lenders, the Obligors will: (i) maintain entity records and books of account separate from those of
any other entity, including Unrestricted Entities, which is an Affiliate of such entity; and (ii)
not commingle its funds or assets with those of any other entity, including Unrestricted Entities,
which is an Affiliate of such entity. Further, the Borrower:

     (a) will not, and will not permit any Obligor to guaranty any Indebtedness of any of
the Unrestricted Entities;

     (b) will not permit any Unrestricted Entity to hold any equity or other ownership
interest in any Obligor; and

     (c) will operate each Unrestricted Entity in such a manner as to make it apparent to all
creditors of such Unrestricted Entity that such Unrestricted Entity is a legal entity separate and
distinct from all of the Obligors and as such is solely responsible for its own debts.

     Section 8.13 Material Agreements. The Obligors will enforce the obligations of Affiliates that
are parties to the Material Agreements to the same extent as they would enforce similar obligations
of unrelated third parties.

     Section 8.14 Guaranties. As an inducement to the Administrative Agent and the Lenders to enter
into this Agreement, each Obligor (other than the Borrower) shall execute and deliver to
Administrative Agent a Guaranty Agreement substantially in the form and upon the terms of Exhibit
G, providing for the guaranty of payment and performance of the Indebtedness. In addition, at the
time of the formation or acquisition of any Subsidiary (other than the Unrestricted Entities), the
Borrower shall cause such Subsidiary to execute and deliver to the Administrative Agent (i) a
Guaranty Agreement substantially in the form and upon the terms of Exhibit G, providing for the
guaranty of payment and performance of the Indebtedness, (ii) Security Instruments in form and
substance satisfactory to the Administrative Agent creating liens and security interests in all
assets and properties of such Subsidiary and in the equity interest in such Subsidiary except for
any equity interests in Unrestricted Entities, and (iii) such other documents and instruments as
may be required with respect to such Subsidiary pursuant to Section 8.05. At the time of the
formation or acquisition of any Subsidiary or any Unrestricted Entity, Borrower shall cause such
Subsidiary or Unrestricted Entity to execute and deliver to Administrative Agent certified copies
of such Subsidiary’s, or Unrestricted Entity’s, as the case may be, organizational documents.

44

 

ARTICLE IX

Negative Covenants

     The Obligors covenant and agree that, so long as any of the Commitments are in effect and
until payment in full of Loans hereunder, all interest thereon and all other amounts payable by the
Obligors hereunder, without the prior written consent of the Required Lenders:

     Section 9.01 Debt. None of the Obligors will incur, create, assume or permit to exist any Debt,
except:

     (a) the Notes or other Indebtedness or any guaranty of or suretyship arrangement for
the Notes or other Indebtedness;

     (b) Debt of the Borrower disclosed in Schedule 9.01, and any renewals or extensions (but not
increases) thereof;

     (c) accounts payable (for the deferred purchase price of Property or services) from time to
time incurred in the ordinary course of business which, if greater than 90 days past the invoice or
billing date, are being contested in good faith by appropriate proceedings if reserves adequate
under GAAP shall have been established therefor;

     (d) Debt under leases permitted under Section 9.08 ;

     (e) Following a Permitted Acquisition, Debt associated with bonds or surety
obligations pursuant to Governmental Requirements in connection with the operation of any Obligor’s
Properties;

     (f) Debt of the Obligors under Hedging Agreements permitted under Section 9.07;

     (g) Intercompany Debt, provided, that any such Intercompany Debt is (i) if in excess
of One Hundred Thousand Dollars ($100,000), evidenced by an Intercompany Note which has been
pledged to secure the Indebtedness and is in the possession of the Administrative Agent, and (ii)
subordinated to the Indebtedness upon terms and conditions satisfactory to the Administrative
Agent;

     (h) Debt of the Borrower to the General Partner to enable the General Partner to pay
general and administrative costs and expenses of the Borrower in scope approved by the
Administrative Agent; and

     (i) Debt of the Borrower not otherwise described under subparagraphs (a) through (h) above not
to exceed One Hundred Thousand Dollars ($100,000) in the aggregate.

     Section 9.02 Liens. None of the Obligors will create, incur, assume or permit to exist any
Lien on any of its Properties (now owned or hereafter acquired), except:

     (a) Liens in favor of the Administrative Agent for the benefit of the Lenders securing
the payment of any Indebtedness;

     (b) (i) Liens of the type described in clause (i) or (ii) of the definition of Excepted
Liens on debt or equity interests in Atlas Pipeline Partners or APL General Partner, but only to

45

 

the extent such Liens are inchoate and (ii) Excepted Liens on Property of any Obligor other than
debt or equity interests in Atlas Pipeline Partners or APL General Partner;

     (c)
Liens securing leases allowed under Section 9.08, but only on the Property under lease;

     (d) Liens on cash or securities (other than debt or equity interests in Atlas Pipeline
Partners or APL General Partner) of an Obligor securing the Debt described in Section 9.01(e);

     (e) Liens in existence on the date hereof securing Debt of the Borrower disclosed in Schedule
9.01, provided, that no such Liens shall be extended to cover any additional Property after the
date hereof and the amount of Debt secured thereby is not increased; and

     (f) purchase money Liens upon or in any Property acquired by the Borrower or any of
its Subsidiaries to secure the deferred portion of the purchase price of Property or to
secure Debt incurred to finance the acquisition of such Property, provided, that (i) no
such Lien shall be extended to cover property other than the property being acquired, and
(ii) the Debt thereby secured is permitted by Section 9.01(i).

     Section 9.03 Investments, Loans and Advances. No Obligors will make or permit to remain
outstanding any loans or advances to or investments in any Person, except that the foregoing
restriction shall not apply to:

     (a) accounts receivable arising in the ordinary course of business;

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

     (c) commercial paper maturing within one year from the date of creation thereof rated in the
highest grade by S&P or Moody’s;

     (d) deposits maturing within one year from the date of creation thereof with, including
certificates of deposit issued by, any Lender or any office located in the United States of any
other bank or trust company which is organized under the laws of the United States or any state
thereof, has capital, surplus and undivided profits aggregating at least One Hundred Million
Dollars ($100,000,000.00) (as of the date of such Lender’s or bank or trust company’s most recent
financial reports) and has a short term deposit rating of no lower than A2 or P2, as such rating is
set forth from time to time, by S&P or Moody’s, respectively;

     (e) deposits in money market funds investing exclusively in investments described in
Section 9.03(c), or 9.03(d);

     (f) investments, loans or advances in or to another Obligor permitted under Section 9.01(g);

     (g) Loans and advances by Borrower to General Partner to pay general and
administrative expenses of the Borrower pursuant to the Limited Partnership Agreement;

     (h) Other loans or advances not otherwise described under subparagraphs (a)
through (g) above not to exceed in the aggregate Fifty Thousand Dollars ($50,000);

46

 

     (i) purchase of debt or limited partnership units of Atlas Pipeline Partners or general
partner contributions of APL General Partner to Atlas Pipeline Partners; or

     (j) Non-hostile acquisitions of equity securities, or assets constituting a business unit, of
any Person, provided that (i) immediately prior to and after giving effect to such acquisition, no
Default or Event of Default exists or would result therefrom, (ii) if such acquisition is of equity
securities of a Person (other than an Unrestricted Entity), such person becomes a Guarantor, (iii)
the Borrower shall be in pro forma compliance with the covenants set forth in Sections 9.13, 9.14
and 9.15 based on the trailing 12 quarters and as adjusted for such acquisition, (iv) such acquired
Person (other than an Unrestricted Entity) or assets shall not be subject to any material
liabilities except as permitted by this Agreement, (v) a first priority perfected lien and security
interest shall be granted to the Administrative Agent for the benefit of the Lenders in such
acquired assets and (vi) after giving effect to such acquisition Borrower and its Subsidiaries
(excluding for this purpose the Unrestricted Entities), taken as a whole, are primarily engaged in
lines of business that are both (A) qualified businesses of master limited partnerships and (B)
midstream energy related; provided however, that nothing herein shall
require any Unrestricted Entity to grant a first priority lien in its assets.

     Section 9.04 Dividends, Distributions and Redemptions. The Borrower will not declare or pay
any dividend, purchase, redeem or otherwise acquire for value any of its stock now or hereafter
outstanding, return any capital to its unitholders or make any distribution of its assets to its
unitholders if an Event of Default has occurred and is continuing or would occur as a result of
such distribution.

     Section 9.05 Dispositions; Sales and Leasebacks. No Obligor will Dispose of any limited or
general partnership units or interests in Atlas Pipeline Partners or (except for Disposition in the
ordinary course of business of immaterial assets) any other assets of such Obligor. Borrower shall
not Dispose of any interest in APL General Partner. No Obligors will enter into any arrangement,
directly or indirectly, with any Person whereby any such Obligor shall sell or transfer any of its
Property, whether now owned or hereafter acquired, and whereby such Obligor shall then or
thereafter rent or lease as lessee such Property or any part thereof or other Property which such
Obligor intends to use for substantially the same purpose or purposes as the Property sold or
transferred.

     Section 9.06 Nature of Business. No Obligor will allow any material change to be made in the
character of its business as the owner of limited and/or general partner interests of Atlas
Pipeline Partners, except for Permitted Acquisitions. None of the Obligors shall materially amend,
waive or modify any of their Material Agreements in any manner that could reasonably be expected to
cause any material and adverse effect on the Administrative Agent’s and the Lenders’ interests in
the collateral securing the Indebtedness, or the Administrative Agents’ or the Lenders’ ability to
enforce their rights and remedies under this Agreement or any other Loan Document, at law or in
equity.

     Section 9.07 Hedging Agreements. Obligors shall not enter into or in any manner be liable on
any Hedging Agreement, except:

     (a) Following a Permitted Acquisition, Hedging Agreements entered into with the purpose and
effect of fixing prices on Hydrocarbons; provided, that at all times: (1) no such contract shall
be for speculative purposes; (2) such contracts shall be on terms satisfactory to Administrative
Agent and the Required Lenders; (3) the agreements documenting such Hedging Agreements do not
contain any provision exonerating the non-defaulting party from its obligation to make payments on
outstanding transactions to the defaulting party; (4) no such Hedging Agreement, when aggregated
with all Hedging Agreements permitted under this Section 9.07(a), requires any Obligor party
thereto to deliver more than eighty percent (80%) of the total

47

 

estimated throughput of Hydrocarbon volumes owned by any Obligor for its own account on such
Obligor’s Properties and associated processing facilities; and (5) each such contract shall be with
a Lender or an Affiliate of a Lender, or with a counterparty or have a guarantor of the obligation
of the counterparty who, at the time the contract is made, has long-term obligations rated AA or
Aa2 or better, respectively, by S&P or Moody’s.

     (b) Hedging Agreements entered into with the purpose and effect of fixing interest rates on a
principal amount of the Notes of the Borrower that is accruing interest at a variable rate;
provided, that (1) no such contract shall be for speculative purposes; (2) the floating rate index
of each such contract generally matches the index used to determine the floating rates of
interest on the corresponding Indebtedness of the Borrower to be hedged by such contract; (3)
the aggregate notional amount of such Hedging Agreements shall not exceed one hundred percent
(100%) of the principal outstanding under the Notes; and (4) each such contract shall be with a
Lender or an Affiliate of a Lender, or with a counterparty or have a guarantor of the obligation of
the counterparty who, at the time the contract is made, has long-term obligations rated AA or Aa2
or better, respectively, by S&P or Moody’s (or a successor credit rating agency).

     (c) In the event any Obligor enters into a Hedging Agreement with any of the Lenders, the
contingent obligation evidenced under such Hedging Agreement shall not be applied against such
Lender’s Commitment. Any Indebtedness incurred under any Hedging Agreement with any Lender shall be
treated as Indebtedness pari passu with all Indebtedness otherwise incurred hereunder or under the
other Loan Documents and shall be secured under the Security Instruments.

     Section 9.08 Limitation on Leases. None of the Obligors will create, incur, assume or permit
to exist any obligation for the payment of rent or hire of Property of any kind whatsoever real or
personal including capital leases which would cause the aggregate amount of all payments made by
such Obligors pursuant to all such leases or lease agreements to exceed Five Hundred Thousand
Dollars ($500,000) in any period of twelve consecutive calendar months during the life of such
leases, excluding however (i) oil and gas leases or rights of way acquired in the ordinary course
of business solely with respect to the right to maintain flow lines or gathering lines or sales
lines across the lands subject thereto, and (ii) equipment leases in the ordinary course of
business for compression of Hydrocarbons gathered and transported through pipelines under leases or
lease agreements.

     Section 9.09 Mergers, Etc. None of the Obligors will merge into or with or consolidate with
any other Person, or liquidate, sell, lease or otherwise dispose of (whether in one transaction or
in a series of transactions) all or substantially all of its Property or assets (whether now owned
or hereafter acquired) to or in favor of any other Person, except, so long as no Default exists or
would result therefrom, (i) any Subsidiary may merge with (a) the Borrower, provided, that the
Borrower shall be the continuing or surviving Person, or (b) any one or more other Subsidiaries,
provided, that that if a wholly-owned Subsidiary is merging with another Subsidiary, a wholly-owned
Subsidiary shall be the continuing or surviving Person, and (ii) any Subsidiary may dispose of all
or substantially all of its assets (upon voluntary liquidation or otherwise) to the Borrower or to
another Subsidiary; provided, that if the transferor in such a transaction is a Guarantor, then the
transferee must either be the Borrower or a Guarantor.

     Section 9.10 Proceeds of Notes and Letters of Credit. The Borrower will not permit the
proceeds of the Notes or Letters of Credit to be used for any purpose other than those permitted by
Section 7.07. Neither the Borrower nor any Person acting on behalf of the Borrower has taken or
will take any action which might cause any of the Loan Documents to violate Regulation T, U or X or
any other regulation of the Board of Governors of the Federal Reserve System or to violate Section
7 of the

48

 

Securities Exchange Act of 1934 or any rule or regulation thereunder, in each case as now in effect
or as the same may hereinafter be in effect.

     Section 9.11 ERISA Compliance. The Obligors will not at any time engage in a
transaction which could be subject to Section 4069 or 4212(c) of ERISA, or permit any Plan
maintained by a Company to (i) engage in any non-exempt “prohibited transaction” (as defined in
Section 4975 of the Code); (ii) fail to comply with ERISA or any other applicable Laws; or (iii)
incur any material “accumulated funding deficiency” (as defined in Section 302 of ERISA), which,
with respect to each event listed above, could be reasonably expected to have a Material Adverse
Effect.

     Section 9.12 Sale or Discount of Receivables. None of the Obligors nor any Subsidiary will
discount or sell (with or without recourse) any of its notes receivable or accounts receivable.

     Section 9.13 Interest Expense Coverage Ratio. The Borrower will not permit the ratio of
Consolidated EBITDA of the Borrower to its Consolidated Interest Expense as of the end of any
fiscal quarter of the Borrower (calculated quarterly based upon the four most recently completed
quarters) to be less than 3.00 to 1.00.

     Section 9.14 Combined Leverage Ratio. The Borrower will not permit the ratio of the sum of
Consolidated Funded Debt of the Borrower plus the Consolidated Funded Debt of Atlas Pipeline
Partners to the “Consolidated EBITDA” of Atlas Pipeline Partners, as the term “Consolidated EBITDA”
is defined in the Atlas Pipeline Partners Credit Agreement as of the end of any fiscal quarter of
the Borrower (calculated quarterly based upon the four most recently completed quarters for which
financial statements of Atlas Pipeline Partners are available to the Borrower, and including pro
forma adjustments made pursuant to the Atlas Pipeline Partners Credit Agreement following any
material acquisition by Atlas Pipeline Partners or any of its Consolidated Subsidiaries) to be more
than 5.50 to 1.00.

     Section 9.15 Leverage Ratio. The Borrower will not permit the ratio of its Consolidated
Funded Debt to its Consolidated EBITDA (the “Leverage Ratio”) as of the end of any fiscal quarter
of Borrower (calculated quarterly based upon the four most recently completed quarters for which
financial statements are available to the Borrower, and including pro forma adjustments acceptable
to Administrative Agent following any material acquisition) to be more than 3.50 to 1.00.

     Section 9.16 Environmental Matters. None of the Obligors will cause or permit any of its
Property to be in violation of, or do anything or permit anything to be done which will subject any
such Property to any remedial obligations under any Environmental Laws, assuming disclosure to the
applicable Governmental Authority of all relevant facts, conditions and circumstances, if any,
pertaining to such Property where such violations or remedial obligations would have a Material
Adverse Effect.

     Section 9.17 Transactions with Affiliates. None of the Obligors will enter into any
transaction, including, without limitation, any purchase, sale, lease or exchange of Property or
the rendering of any service, with any Affiliate unless such transactions are otherwise permitted
under this Agreement, are in the ordinary course of its business and are upon fair and reasonable
terms no less favorable to it than it would obtain in a comparable arm’s length transaction with a
Person not an Affiliate; provided, that for purposes of this Section the agreements on Schedule
7.21shall be deemed to be arm’s length transactions.

     Section 9.18 Subsidiaries. The Obligors shall not create any additional Subsidiaries (other
than Unrestricted Entities) that do not become Guarantors hereunder. The Borrower shall not sell or
issue any stock or ownership interest of a Subsidiary, except in compliance with Section 9.04.

49

 

     Section 9.19 Negative Pledge Agreements. None of the Obligors will create, incur, assume or
permit to exist any contract, agreement or understanding (other than this Agreement and the
Security Instruments) which in any way prohibits or restricts the granting, conveying, creation or
imposition of any Lien on any of its Property or restricts it or any other Subsidiary from paying
dividends to the Borrower, or which requires the consent of or notice to other Persons in
connection therewith.

     Section 9.20 Amendments to Material Agreements. The Obligors shall not permit any assignment,
transfer or amendment to any Material Agreement or the Limited Partnership Agreement, if such
assignment, transfer of amendment could reasonably be expected to have a Material Adverse Effect.

     Section 9.21 Accounting Changes. Borrower shall not and shall not permit any Subsidiary to
make any significant change in accounting treatment or reporting practices except as required by
GAAP, or change the fiscal year of the Borrower or any Subsidiary.

ARTICLE X

Events of Default; Remedies

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

     (a) the Borrower shall default in the payment or prepayment when due of any principal of or
interest on any Loan, or any reimbursement obligation for a disbursement made under any Letter of
Credit, or any fees or other amount payable by it hereunder or under any Security Instrument; or

     (b) (i) any Obligor shall default in the payment when due of any principal of or interest on
any of its other Debt aggregating Two Million Five Hundred Thousand Dollars ($2,500,000) or more,
or any event specified in any note, agreement, indenture or other document evidencing or relating
to any such Debt shall occur if the effect of such event is to cause, or (with the giving of any
notice or the lapse of time or both) to permit the holder or holders of such Debt (or a trustee or
agent on behalf of such holder or holders) to cause, such Debt to become due prior to its stated
maturity; or (ii) Atlas Pipeline Partners shall default in the payment when due of any principal of
or interest on any Debt in excess of Twenty-Five Million Dollars ($25,000,000), or any event
specified in any note, agreement, indenture or other document evidencing or relating to any such
Debt shall occur if the effect of such event is to cause, or (with the giving of any notice or the
lapse of time or both) to permit the holder or holders of such Debt (or a trustee or agent on
behalf of such holder or holders) to cause, such Debt to become due prior to its stated maturity;
or

     (c) any representation, warranty or certification made or deemed made herein or in any Loan
Document by any Obligor, or any certificate furnished to any Lender or the Administrative Agent
pursuant to the provisions hereof or any Security Instrument, shall prove to have been false or
misleading as of the time made or furnished in any material respect; or

     (d) any Obligor shall default in the performance of any of its obligations under Article IX or
any other Article of this Agreement other than under Article VIII; or any Obligor
shall default in the performance of any of its obligations under Article VIII or under any
Loan Document to which it is a party (other than the payment of amounts due which shall be governed
by Section 10.01(a)) and such default shall continue unremedied for a period of thirty (30) days
following the occurrence thereof; or

50

 

     (e) any Obligor or Atlas Pipeline Partners shall admit in writing its inability to, or be
generally unable to, pay its debts as such debts become due; or

     (f) any Obligor or Atlas Pipeline Partners shall (i) apply for or consent to the appointment
of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or of
all or a substantial part of its property, (ii) make a general assignment for the benefit of its
creditors, (iii) commence a voluntary case under the Federal Bankruptcy Code (as now or hereafter
in effect), (iv) file a petition seeking to take advantage of any other law relating to bankruptcy,
insolvency, reorganization, winding-up, liquidation or composition or readjustment of debts, (v)
fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition
filed against it in an involuntary case under the Federal Bankruptcy Code, or (vi) take any
corporate action for the purpose of effecting any of the foregoing; or

     (g) a proceeding or case shall be commenced, without the application or consent of any Obligor
or Atlas Pipeline Partners, in any court of competent jurisdiction, seeking (i) its liquidation,
reorganization, dissolution or winding-up, or the composition or readjustment of its debts, (ii)
the appointment of a trustee, receiver, custodian, liquidator or the like of such Obligor or Atlas
Pipeline Partners, as applicable, of all or any substantial part of its assets, or (iii) similar
relief in respect of such Obligor or Atlas Pipeline Partners, as applicable, under any law relating
to bankruptcy, insolvency, reorganization, winding-up, or composition or adjustment of debts, and
such proceeding or case shall continue undismissed, or an order, judgment or decree approving or
ordering any of the foregoing shall be entered and continue unstayed and in effect, for a period of
60 days; or (iv) an order for relief against any Obligor or Atlas Pipeline Partners, as applicable,
shall be entered in an involuntary case under the Federal Bankruptcy Code; or

     (h) a judgment or judgments for the payment of money in excess of Two Million Five Hundred
Thousand Dollars ($2,500,000) in the aggregate shall be rendered by a court against any Obligor or
Atlas Pipeline Partners and the same shall not be discharged (or provision shall not be made for
such discharge), or a stay of execution thereof shall not be procured, within the period of time
prescribed by applicable rules of civil procedure in which to perfect an appeal thereof and such
Obligor or Atlas Pipeline Partners, as applicable shall not, within said period, or such longer
period during which execution of the same shall have been stayed, or an appeal therefrom shall
cause the execution thereof to be stayed during such appeal; or

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

     (j) a Change in Control with respect to Atlas, the General Partner or any Obligor occurs;
provided, that any Change in Control that occurs as a result of a Permitted Merger shall
not constitute a Default; or

     (k) termination of any Material Agreement or any material provision of any Material Agreement
if such termination could reasonably be expected to have a Material Adverse Effect and such
agreement or provision is not replaced (prior to such termination) in a manner that will prevent
such Material Adverse Effect; or default by any Person in the performance or observance of any
material term of any Material Agreement which is not cured within the applicable cure

51

 

period specified in such Material Agreement, if such default could reasonably be expected to have a
Material Adverse Effect; or

     (l) any Obligor conceals any of its Property with the intent to hinder, delay or defraud any
Lender, the Issuing Bank, or the Administrative Agent with respect to their rights in Property of
the Obligors; or

     (m) a Material Adverse Effect occurs.

     Section 10.02 Remedies.

     (a) In the case of an Event of Default other than one referred to in clauses (e), (f) or (g)
of Section 10.01, the Administrative Agent, upon request of the Required Lenders, shall, by notice
to the Borrower, cancel the Revolver Commitments (in whole or part) and upon request of Required
Lenders, declare the principal amount then outstanding of, and the accrued interest on, the Loans
and all other amounts payable by the Borrower hereunder and under the Notes (including, without
limitation, upon request of the Required Lenders, the payment of cash collateral to secure the LC
Exposure as provided in Section 2.09(b)) to be forthwith due and payable, whereupon such amounts
shall be immediately due and payable without presentment, demand, protest, notice of intent to
accelerate, notice of acceleration or other formalities of any kind, all of which are hereby
expressly waived by the Borrower.

     (b) In the case of the occurrence of an Event of Default referred to in clauses (e), (f) or
(g) of Section 10.01, the Commitments shall be automatically canceled and the principal amount then
outstanding of, and the accrued interest on, the Loans and all other amounts payable by the
Borrower hereunder and under the Notes (including without limitation the payment of cash collateral
to secure the LC Exposure as provided in Section 2.09(b)) shall become automatically immediately
due and payable without presentment, demand, protest, notice of intent to accelerate, notice of
acceleration or other formalities of any kind, all of which are hereby expressly waived by the
Borrower.

     (c) All proceeds received after maturity of the Notes, whether by acceleration or otherwise
shall be applied first to reimbursement of expenses and indemnities provided for in this Agreement
and the Security Instruments; second to accrued interest on the Notes; third to fees; fourth pro
rata to principal outstanding on the Notes and other Indebtedness; fifth to serve as cash
collateral to be held by the Administrative Agent to secure the LC Exposure; and any excess shall
be paid to the Borrower or as otherwise required by any Governmental Requirement.

     Section 10.03 Distributions. Notwithstanding that, under Article VIII of the Pledge,
Assignment and Security Agreement executed by each of the Obligors, as “Debtor” thereto
(herein collectively the “Pledges”), such parties have unconditionally assigned to Administrative
Agent for the ratable benefit of the Lenders all of the dividends, interest, or other Distributions
(as defined therein) paid or payable in respect of the collateral covered thereby:

     (i) Until such time as Administrative Agent shall notify such Obligors to the
contrary, Obligors shall be entitled to receive and retain all such Distributions, subject
however to the security interests created under the Pledges, which liens are hereby
affirmed and ratified. Automatically upon an Event of Default under Section 10.01(e), (f)
or (g) and upon the occurrence and during the continuance of any other Event of Default,
Administrative Agent may exercise all rights and remedies granted under the Pledges,
including the right to obtain possession of all Distributions then held by

52

 

Obligors or to receive directly from the Subsidiaries and Partnerships making such
payments all future Distributions attributable to the collateral.

     (ii) In no case shall any failure, whether purposed or inadvertent, by Administrative
Agent to collect directly any such Distributions constitute in any way a waiver, remission
or release of any of its rights under the Pledges, nor shall any release of any other
Distributions or of any rights of Administrative Agent to collect other Distributions
thereafter.

     (iii) Borrower will upon the instruction of Administrative Agent join with
Administrative Agent in notifying in writing to the entities responsible for making such
Distributions of the existence of the Pledges, and instructing that all Distributions be
paid directly to Administrative Agent for the ratable benefit of the Lenders.

ARTICLE XI

The Administrative Agent

     Section 11.01 Appointment, Powers and Immunities. Each Lender hereby irrevocably appoints and
authorizes the Administrative Agent to act as its agent hereunder and under the Security
Instruments with such powers as are specifically delegated to the Administrative Agent by the terms
of this Agreement and the Security Instruments, together with such other powers as are reasonably
incidental thereto. The Administrative Agent (which term as used in this sentence and in Section
11.05 and the first sentence of Section 11.06 shall include reference to its Affiliates and its and
its Affiliates’ officers, directors, employees, attorneys, accountants, experts and agents): (i)
shall have no duties or responsibilities except those expressly set forth in the Loan Documents,
and shall not by reason of the Loan Documents be a trustee or fiduciary for any Lender; (ii) makes
no representation or warranty to any Lender and shall not be responsible to the Lenders for any
recitals, statements, representations or warranties contained in this Agreement, or in any
certificate or other document referred to or provided for in, or received by any of them under,
this Agreement, or for the value, validity, effectiveness, genuineness, execution, effectiveness,
legality, enforceability or sufficiency of this Agreement, any Note or any other document referred
to or provided for herein or for any failure by any of the Obligors or any other Person (other than
the Administrative Agent) to perform any of its obligations hereunder or thereunder or for the
existence, value, perfection or priority of any collateral security or the financial or other
condition of the Borrower, its Subsidiaries or any other obligor or guarantor; (iii) except
pursuant to Section 11.07 shall not be required to initiate or conduct any litigation of
collection proceedings hereunder; and (iv) shall not be responsible for any action taken or
omitted to be taken by it hereunder or under any other document or instrument referred to or
provided for herein or in connection herewith including its own ordinary negligence, except for its
own gross negligence or willful misconduct. The Administrative Agent may employ agents,
accountants, attorneys and experts and shall not be responsible for the negligence or misconduct of
any such agents, accountants, attorneys or experts selected by it in good faith or any action taken
or omitted to be taken in good faith by it in accordance with the advice of such agents,
accountants, attorneys or experts. The Administrative Agent may deem and treat the payee of any
Note as the holder thereof for all purposes hereof unless and until a written notice of the
assignment or transfer thereof permitted hereunder shall have been filed with the Administrative
Agent.

     Section 11.02 Reliance by Administrative Agent. The Administrative Agent shall be entitled to
rely upon any certification, notice or other communication (including any thereof by telephone,
telex, telecopier, telegram or cable) believed by it to be genuine and correct and to have been
signed or sent by or on behalf of the proper Person or Persons, and upon advice and statements of
legal counsel, independent accountants and other experts selected by the Administrative Agent.

53

 

     Section 11.03 Defaults. The Administrative Agent shall not be deemed to have knowledge of the
occurrence of a Default (other than the non-payment of principal of or interest on Loans or of fees
or failure to reimburse for Letter of Credit drawings) unless the Administrative Agent has received
notice from a Lender or the Borrower specifying such Default and stating that such notice is a
“Notice of Default”. In the event that the Administrative Agent receives such a notice of the
occurrence of a Default, the Administrative Agent shall give prompt notice thereof to the Lenders.
In the event of a payment Default, the Administrative Agent shall give each Lender prompt notice of
each such payment Default.

     Section 11.04 Rights as a Lender. With respect to its Commitments and the Loans made by it and
its participation in the issuance of Letters of Credit, Wachovia Bank, National Association (and
any successor acting as Administrative Agent) in its capacity as a Lender hereunder shall have the
same rights and powers hereunder as any other Lender and may exercise the same as though it were
not acting as the Administrative Agent, and the term “Lender” or “Lenders” shall, unless the
context otherwise indicates, include the Administrative Agent in its individual capacity. Wachovia
Bank, National Association (and any successor acting as Administrative Agent) and its Affiliates
may (without having to account therefor to any Lender) accept deposits from, lend money to and
generally engage in any kind of banking, trust or other business with the Obligors (and any of
their Affiliates) as if it were not acting as the Administrative Agent, and Wachovia Bank, National
Association and its Affiliates may accept fees and other consideration from the Obligors for
services in connection with this Agreement or otherwise without having to account for the same to
the Lenders.

     Section 11.05 Indemnification. The Lenders agree to indemnify the Administrative Agent and the
Issuing Bank ratably in accordance with their percentage shares for the indemnity matters as
described in Section 12.03 to the extent not indemnified or reimbursed by the Obligors under
Section 12.03, but without limiting the obligations of the Obligors under said Section 12.03 and
for any and all other liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind and nature whatsoever which may be imposed on,
incurred by or asserted against the Administrative Agent or the Issuing Bank in any way
relating to or arising out of: (i) this Agreement, the Security Instruments or any other
documents contemplated by or referred to herein or the transactions contemplated hereby, but
excluding, unless a Default has occurred and is continuing, normal administrative costs and
expenses incident to the performance of its agency duties hereunder or (ii) the enforcement of any
of the terms of this Agreement, any Security Instrument or of any such other documents; WHETHER OR
NOT ANY OF THE FOREGOING SPECIFIED IN THIS SECTION 11.05 ARISES FROM THE SOLE OR CONCURRENT
NEGLIGENCE OF THE ADMINISTRATIVE AGENT OR THE ISSUING BANK, provided that no Lender shall be liable
for any of the foregoing to the extent they arise from the gross negligence or willful misconduct
of the Administrative Agent or the Issuing Bank.

     Section 11.06 Non-Reliance on Administrative Agent and other Lenders. Each Lender
acknowledges and agrees that it has, independently and without reliance on the Administrative Agent
or any other Lender, and based on such documents and information as it has deemed appropriate, made
its own credit analysis of the Obligors and its decision to enter into this Agreement, and that it
will, independently and without reliance upon the Administrative Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own analysis and decisions in taking or not taking action under this Agreement. The
Administrative Agent shall not be required to keep itself informed as to the performance or
observance by the Obligors of this Agreement, the Notes, the Security Instruments or any other
document referred to or provided for herein or to inspect the properties or books of the Obligors.
Except for notices, reports and other documents and information expressly required to be furnished
to the Lenders by the Administrative Agent hereunder (including, without limitation, those
materials delivered to the Administrative Agent pursuant to Section

54

 

8.01), the Administrative Agent shall not have any duty or responsibility to provide any Lender
with any credit or other information concerning the affairs, financial condition or business of the
Obligors (or any of their Affiliates) which may come into the possession of the Administrative
Agent or any of its Affiliates. In this regard, each Lender acknowledges that Thompson & Knight,
LLP is acting in this transaction as special counsel to the Administrative Agent only, except to
the extent otherwise expressly stated in any legal opinion or any Loan Document. Each Lender will
consult with its own legal counsel to the extent that it deems necessary in connection with the
Loan Documents and the matters contemplated therein.

     Section 11.07 Action by Administrative Agent. Except for action or other matters expressly
required of the Administrative Agent hereunder, the Administrative Agent shall in all cases be
fully justified in failing or refusing to act hereunder unless it shall (i) receive written
instructions from the Required Lenders, as applicable (or all of the Lenders as expressly required
by Section 12.04), specifying the action to be taken, and (ii) be indemnified to its satisfaction
by the Lenders against any and all liability and expenses which may be incurred by it by reason of
taking or continuing to take any such action. The instructions of the Required Lenders, as
applicable (or all of the Lenders as expressly required by Section 12.04), and any action taken or
failure to act pursuant thereto by the Administrative Agent shall be binding on all of the Lenders.
If a Default has occurred and is continuing, the Administrative Agent shall take such action with
respect to such Default as shall be directed by the Required Lenders, as applicable (or all of the
Lenders as required by Section 12.04), in the written instructions (with indemnities) described in
this Section 11.07, provided that, unless and until the Administrative Agent shall have
received such directions, the Administrative Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Default as it shall deem advisable
in the best interests of the Lenders. In no event, however, shall the Administrative Agent be
required to take any action which exposes the Administrative Agent to personal liability or which
is contrary to this Agreement and the Security Instruments or applicable law.

     Section 11.08 Resignation or Removal of Administrative Agent. Subject to the appointment and
acceptance of a successor Administrative Agent as provided below, the Administrative Agent may
resign at any time by giving notice thereof to the Lenders and the Borrower, and the Administrative
Agent may be removed at any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a successor
Administrative Agent. If no successor Administrative Agent shall have been so appointed by the
Required Lenders and shall have accepted such appointment within thirty (30) days after the
retiring Administrative Agent’s giving of notice of resignation or the Required Lenders’ removal of
the retiring Administrative Agent, then the retiring Administrative Agent may, on behalf of the
Lenders, appoint a successor Administrative Agent. Upon the acceptance of such appointment
hereunder by a successor Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties of the retiring
Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder. After any retiring Administrative Agent’s resignation or removal hereunder
as Administrative Agent, the provisions of this Article XI and Section 12.03 shall continue in
effect for its benefit in respect of any actions taken or omitted to be taken by it while it was
acting as the Administrative Agent.

     Section 11.09 No Other Duties. Notwithstanding anything to the contrary set forth herein,
none of “syndication agent,” “co-lead arrangers” or “sole book runner” listed on the cover page
hereof shall have any powers, duties or responsibilities under this Agreement or any of the other
Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Co-Lead
Arranger, a Lender or the Issuing Bank hereunder.

55

 

     Section 11.10 Collateral and Guaranty Matters. The Lenders and the Issuing Bank irrevocably
authorize and direct the Administrative Agent:

     (a) to release any Lien on any property granted to or held by the Administrative Agent under
any Loan Document (i) upon termination of the Commitments, payment in full of all Indebtedness
(other than contingent indemnification obligations), the expiration or termination of all Letters
of Credit, and, if any Hedging Agreement remain outstanding, confirmation from each counterparty
thereto known to the Administrative Agent to be party to such Hedging Agreement that such Person
consents to such release, (ii) that is sold or to be sold as part of or in connection with any sale
permitted hereunder or under any other Loan Document, or (iii) subject to Section 12.04, if
approved, authorized or ratified in writing by the Required Lenders;

     (b) to subordinate any Lien on any property granted to or held by the Administrative
Agent under any Loan Document to the holder of any Lien on such property that is permitted
by
Section 9.02(e); and

     (c) to release any Guarantor from its obligations under the Guaranty if such Person
ceases to be a Subsidiary as a result of a transaction permitted hereunder.

Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing
the Administrative Agent’s authority to release or subordinate its interest in particular types or
items of property, or to release any Guarantor from its obligations under the Guaranty pursuant to
this Section 11.10.

ARTICLE XII

Miscellaneous

     Section 12.01 Waiver. No failure on the part of the Administrative Agent or any Lender to
exercise and no delay in exercising, and no course of dealing with respect to, any right, power or
privilege under any of the Loan Documents shall operate as a waiver thereof, nor shall any single
or partial exercise of any right, power or privilege under any of the Loan Documents preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. The
remedies provided herein are cumulative and not exclusive of any remedies provided by law.

     Section 12.02 Notices. All notices and other communications provided for herein and in the
other Loan Documents (including, without limitation, any modifications of, or waivers or consents
under, this Agreement or the other Loan Documents) shall be given or made by telex, telecopy,
courier or U.S. Mail or in writing and telexed, telecopied, mailed or delivered to the intended
recipient at the “Address for Notices” specified below its name on the signature pages hereof or in
the Loan Documents or, as to any party, at such other address as shall be designated by such party
in a notice to each other party. Except as otherwise provided in this Agreement or in the other
Loan Documents, all such communications shall be deemed to have been duly given when transmitted,
if transmitted before 1:00 p.m. local time on a Business Day (otherwise on the next succeeding
Business Day) by telex or telecopier and evidence or confirmation of receipt is obtained, or
personally delivered or, in the case of a mailed notice, three (3) Business Days after the date
deposited in the mails, postage prepaid, in each case given or addressed as aforesaid.

     Section 12.03 Payment of Expenses, Indemnities, etc.

     (a) The Obligors agree:

56

 

     (i) whether or not the transactions hereby contemplated are consummated, to pay all
reasonable expenses of the Administrative Agent in the administration (both before and
after the execution hereof and including advice of counsel as to the rights and duties of
the Administrative Agent and the Lenders with respect thereto) of, and in connection with
the negotiation, syndication, investigation, preparation, execution and delivery of,
recording or filing of, preservation of rights under, enforcement of, and refinancing,
renegotiation or restructuring of, the Loan Documents and any amendment, waiver or consent
relating thereto (including, without limitation, travel, photocopy, mailing, courier,
telephone and other similar expenses of the Administrative Agent, the cost of
environmental audits, surveys and appraisals at reasonable intervals, the reasonable fees
and disbursements of counsel and other outside consultants for the Administrative Agent
and, in the case of preservation or enforcement of rights (including
restructurings and workouts), the reasonable fees and disbursements of counsel for
the Administrative Agent and any of the Lenders); and promptly reimburse the
Administrative Agent for all amounts expended, advanced or incurred by the Administrative
Agent or the Lenders to satisfy any obligation of the Obligors under this Agreement or any
Security Instrument, including without limitation, all costs and expenses of foreclosure;

     (ii) To indemnify the Administrative Agent and each Lender and each of their
affiliates and each of their officers, directors, employees, representatives, agents,
attorneys, accountants and experts (“Indemnified Parties”) from, hold each of them
harmless against and promptly upon demand pay or reimburse each of them for, the indemnity
matters which may be incurred by or asserted against or involve any of them (whether or
not any of them is designated a party thereto) as a result of, arising out of or in any
way related to (i) any actual or proposed use by the Borrower or any Guarantor of the
proceeds of any of the loans or letters of credit, (ii) the execution, delivery and
performance of the loan documents, (iii) the operations of the business of the Obligors
and their Subsidiaries, (iv) the failure of the Obligors or any Subsidiary to comply with
the terms of any loan document, or with any governmental requirement, (v) any inaccuracy
of any representation or any breach of any warranty of the Obligors set forth in any of
the loan documents, (vi) the issuance, execution and delivery or transfer of or payment or
failure to pay under any letter of credit, or (vii) the payment of a drawing under any
letter of credit notwithstanding the non-compliance, non-delivery or other improper
presentation of the manually executed draft(s) and certification(s), (viii) any assertion
that the Lenders were not entitled to receive the proceeds received pursuant to the
Security Instruments, or (ix) any other aspect of the loan documents, including, without
limitation, the reasonable fees and disbursements of counsel and all other expenses
incurred in connection with investigating, defending or preparing to defend any such
action, suit, proceeding (including any investigations, litigation or inquiries) or claim
and INCLUDING ALL INDEMNITY MATTERS ARISING BY REASON OF THE ORDINARY NEGLIGENCE OF ANY
INDEMNIFIED PARTY, but excluding all indemnity matters arising solely by reason of claims
between the Lenders or any Lender and the Administrative Agent or a Lender’s shareholders
against the Administrative Agent or Lender or by reason of the gross negligence or willful
misconduct on the part of the Indemnified Party; and

     (iii) To indemnify and hold harmless from time to time the Indemnified Parties from
and against any and all losses, claims, cost recovery actions, administrative orders or
proceedings, damages and liabilities to which any such Person may become subject (i) under
any Environmental Law applicable to the

57

 

Obligors or any Subsidiary or any of their Properties, including without limitation, the
treatment or disposal of hazardous substances on any of their Properties, (ii) as a result
of the breach or non-compliance by any Obligor or any Subsidiary with any Environmental
Law applicable to any Obligor or any Subsidiary, (iii) due to past ownership by any
Obligor or any Subsidiary of any of their Properties or past activity on any of their
Properties which, though lawful and fully permissible at the time, could result in present
liability, (iv) the presence, use, release, storage,
treatment or disposal of hazardous substances on or at any of the Properties owned or
operated by any Obligor or any Subsidiary, or (v) any other environmental, health or
safety condition in connection with the Loan Documents.

     (b) No Indemnified Party may settle any claim to be indemnified without the consent of the
indemnitor, such consent not to be unreasonably withheld; provided, that the indemnitor may not
reasonably withhold consent to any settlement that an Indemnified Party proposes, if the indemnitor
does not have the financial ability to pay all its obligations outstanding and asserted against the
indemnitor at that time, including the maximum potential claims against the Indemnified Party to be
indemnified pursuant to this Section 12.03.

     (c) In the case of any indemnification hereunder, the Administrative Agent or Lender, as
appropriate shall give notice to the Obligors of any such claim or demand being made against the
Indemnified Party and the Obligors shall have the non-exclusive right to join in the defense
against any such claim or demand provided that if any Obligor provides a defense, the Indemnified
Party shall bear its own cost of defense unless there is a conflict between the Obligors and such
Indemnified Party.

     (d) The foregoing indemnities shall extend to the Indemnified Parties notwithstanding the sole
or concurrent negligence of every kind or character whatsoever, whether active or passive, whether
an affirmative act or an omission, including without limitation, all types of negligent conduct
identified in the Restatement (Second) of Torts of one or more of the Indemnified Parties or by
reason of strict liability imposed without fault on any one or more of the Indemnified Parties. To
the extent that an Indemnified Party is found to have committed an act of gross negligence or
willful misconduct, this contractual obligation of indemnification shall continue but shall only
extend to the portion of the claim that is deemed to have occurred by reason of events other than
the gross negligence or willful misconduct of the Indemnified Party.

     (e) The Obligors’ obligations under this Section 12.03 shall survive any termination
of this Agreement and the payment of the Notes and shall continue thereafter in full force and
effect.

     (f) The Obligors shall pay any amounts due under this Section 12.03 within thirty
(30) days of the receipt by the Obligors of notice of the amount due.

     Section 12.04 Amendments, Etc. No amendment or waiver of any provision of this Agreement or
the Notes or any other Loan Document (excluding Hedging Agreements), nor consent to any departure
by the Borrower or any other Obligor therefrom, shall in any event be effective unless the same
shall be in writing and signed by the Required Lenders (or by the Administrative Agent on their
behalf upon its receipt of the consent thereof) and the Borrower or the applicable Obligor, as the
case may be, and acknowledged by the Administrative Agent, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given; provided,
however, that no such amendment, waiver or consent shall:

58

 

     (a) waive any of the conditions specified in Section 6.01 or, in the case of the Initial
Funding, Section 6.02, without the written consent of each Lender (other than any Lender that is,
at such time, a Defaulting Lender);

     (b) (i) extend or increase the Commitment of any Lender (or reinstate any Commitment
terminated pursuant to Article X) without the written consent of such Lender, or (ii) extend or
increase the amount of the aggregate Commitments under the Revolver Facility without the consent of
66 2/3% of the Lenders;

     (c) postpone any date scheduled for any payment of principal or interest under this Agreement
(including any principal due pursuant to a mandatory prepayment required pursuant to Section
2.07(b)), or any date fixed by the Administrative Agent for the payment of fees or other amounts
due to the Lenders (or any of them) hereunder or under any other Loan Document without the written
consent of each Lender directly affected thereby;

     (d) reduce or forgive the principal of (including any principal due pursuant to a mandatory
prepayment required pursuant to Section 2.07(b)), or the rate of interest specified herein on, any
Loan or unreimbursed amounts under Letters of Credit, or (subject to clause (iii) of the second
proviso to this Section 12.04) any fees or other amounts payable hereunder (except as set forth in
subsection (1) of this Section 12.04 or under any other Loan Document, or change the manner of
computation of any financial ratio (including any change in any applicable defined term) used in
determining the Applicable Margin that would result in a reduction of any interest rate on any Loan
or any fee payable hereunder without the written consent of each Lender directly affected thereby;
provided, however, that only the written consent of the Required Lenders shall be necessary (i) to
amend the definition of “Post-Default Rate” or to waive any obligation of the Borrower to pay
interest at the Post-Default Rate or (ii) to amend any financial covenant hereunder (or any defined
term used therein) even if the effect of such amendment would be to reduce the rate of interest on
any Loan or advance under any Letter of Credit or to reduce any fee payable hereunder;

     (e) change (i) any provision of Section 4.05(b) that would alter the pro rata sharing of
payments required thereby or this Section 12.04 without the written consent of each Lender, (ii)
the definition of “Required Lenders” without the written consent of each Lender, (iii) the
definition of “Percentage Share” without the written consent of each Lender, or (iv) any other
provision hereof specifying the number or percentage of Lenders required to amend, waive or
otherwise modify any rights hereunder or make any determination or grant any consent hereunder
without the written consent of each Lender;

     (f) amend the definition of “Indebtedness” without the written consent of each
Lender or Affiliate thereof party to a Hedging Agreement with the Borrower or any other
Obligor;

     (g) amend Section 9.07(d) without the written consent of each Lender or Affiliate
thereof party to Hedging Agreements with the Borrower or any other Obligor;

     (h) release any Guarantor from the Guaranty Agreement executed by such Guarantor
without the written consent of each Lender; or

     (i) release any material portion of the collateral covered by any of the Loan
Documents, except as otherwise provided in Section 11.10, without the written consent of each
Lender.

59

 

     Section 12.05 Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and permitted assigns.

     Section 12.06 Assignments and Participations.

     (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that neither
the Borrower nor any other Obligor may assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of the Administrative Agent and each Lender
and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except
(i) to an Eligible Assignee in accordance with the provisions of subsection (b) of this Section,
(ii) by way of participation in accordance with the provisions of subsection (d) of this Section,
or (iii) by way of pledge or assignment of a security interest subject to the restrictions of
subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto
shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the
extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the
Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

     (b) Any Lender may at any time assign to one or more Eligible Assignees all or a portion of
its rights and obligations under this Agreement (including all or a portion of its Commitment and
the Loans (including for purposes of this subsection (b), participations in Letters of Credit) at
the time owing to it); provided, that:

     (i) except in the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a
Lender, the aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect, the principal
outstanding balance of the Loans of the assigning Lender subject to each such assignment,
determined as of the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment
and Assumption, as of the Trade Date, shall not be less than One Million Dollars
($1,000,000) unless each of the Administrative Agent and, so long as no Event of Default
has occurred and is continuing, the Borrower otherwise consents (each such consent not to
be unreasonably withheld or delayed);

     (ii) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations under this
Agreement with respect to the Loans or the Commitment assigned;

     (iii) any assignment of a Commitment must be approved by the
Administrative Agent and the Issuing Bank unless the Person that is the proposed
assignee is itself a Lender (whether or not the proposed assignee would otherwise qualify
as an Eligible Assignee); and

     (iv) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee of
Three Thousand Five Hundred Dollars ($3,500), and the Eligible

60

 

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

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Sections 4.06, 5.01, 5.04, and 12.03 with respect to facts and
circumstances occurring prior to the effective date of such assignment. Upon request, the Borrower
(at its expense) shall execute and deliver a Note to the assignee Lender. Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does not comply with this
subsection shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with subsection (d) of this Section.

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

     (d) Any Lender may at any time, without the consent of, or notice to, the Borrower or the
Administrative Agent, sell participations to any Person (other than a natural person or the
Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a
portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion
of its Commitment and/or the Loans (including such Lender’s participations in Letters of Credit, if
applicable) owing to it); provided, that (i) such Lender’s obligations under this Agreement shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations and (iii) the Borrower, the Administrative Agent, the Lenders
and the Issuing Bank shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement.

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided, that such agreement
or instrument may provide that such Lender will not, without the consent of the Participant, agree
to any amendment, waiver or other modification described in the first proviso to Section 12.04 that
affects such Participant. Subject to subsection (e) of this Section, the
Borrower agrees that each Participant shall be entitled to the benefits of Sections 4.06, 5.01 and
5.05 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant
to subsection (b) of this Section. To the extent permitted by law, each Participant also shall be

61

 

entitled to the benefits of Section 4.05 as though it were a Lender, provided, that such
Participant agrees to be subject to Section 4.01 as though it were a Lender.

     (e) A Participant shall not be entitled to receive any greater payment under Section 4.06,
5.01 or 5.05 than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 4.06 unless the Borrower is notified
of the participation sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 4.06 as though it were a Lender.

     (f) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement (including under its Note, if any) to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank;
provided, that no such pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

     (g) The words “execution,” “signed,” “signature,” and words of like import in any Assignment
and Assumption shall be deemed to include electronic signatures or the keeping of records in
electronic form, each of which shall be of the same legal effect, validity or enforceability as a
manually executed signature or the use of a paper-based recordkeeping system, as the case may be,
to the extent and as provided for in any applicable law, including the Federal Electronic
Signatures in Global and National Commerce Act, the New York State Electronic Signatures and
Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

     (h) Notwithstanding anything to the contrary contained herein, if at any time Wachovia assigns
all of its Commitment and Loans pursuant to subsection (b) above, Wachovia may, upon 30 days’
notice to the Borrower and the Lenders, resign as Issuing Bank. In the event of any such
resignation as Issuing Bank, the Borrower shall be entitled to appoint from among the Lenders a
successor Issuing Bank hereunder; provided however, that no failure by the Borrower to appoint any
such successor shall affect the resignation of Wachovia as Issuing Bank. If Wachovia resigns as
Issuing Bank, it shall retain all the rights and obligations of the Issuing Bank hereunder with
respect to all Letters of Credit outstanding as of the effective date of its resignation as Issuing
Bank and all LC Exposure with respect thereto (including the right to require the Lenders to make
Base Rate Loans or fund risk participations in unreimbursed amounts pursuant to Section 2.09(c)).

     Section 12.07 Invalidity. In the event that any one or more of the provisions contained in any
of the Loan Documents shall, for any reason, be held invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any other provision of
the Notes, this Agreement or any other Loan Document.

     Section 12.08 Counterparts. This Agreement may be executed in any number of counterparts, all
of which taken together shall constitute one and the same instrument and any of the parties hereto
may execute this Agreement by signing any such counterpart.

     Section 12.09 References, Use of Word “Including”. The words “herein,” “hereof,” “hereunder”
and other words of similar import when used in this Agreement refer to this Agreement as a whole,
and not to any particular article, section or subsection. Any reference herein to a Section or

62

 

Article shall be deemed to refer to the applicable Section or Article of this Agreement unless
otherwise stated herein. Any reference herein to an exhibit, schedule, or other attachment shall be
deemed to refer to the applicable exhibit, schedule, or other attachment attached hereto unless
otherwise stated herein. The words “including,” “includes” and words of similar import mean
“including, without limitation.”

     Section 12.10 Survival. The obligations of the parties under Section 4.06, Article V, and
Sections 11.05 and 12.03 shall survive the repayment of the Loans and the termination of the
Commitments. To the extent that any payments on the Indebtedness or proceeds of any collateral are
subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be
repaid to a trustee, debtor in possession, receiver or other Person under any bankruptcy law,
common law or equitable cause, then to such extent, the Indebtedness so satisfied shall be revived
and continue as if such payment or proceeds had not been received and the Administrative Agent’s
and the Lenders’ Liens, security interests, rights, powers and remedies under this Agreement and
each Security Instrument shall continue in full force and effect. In such event, each Security
Instrument shall be automatically reinstated and the Obligors shall take such action as may be
reasonably requested by the Administrative Agent and the Lenders to effect such reinstatement.

     Section 12.11 Captions. Captions and section headings appearing herein are included solely for
convenience of reference and are not intended to affect the interpretation of any provision of this
Agreement.

     Section 12.12 NO ORAL AGREEMENTS. The Loan Documents embody the entire agreement and
understanding between the parties and supersede all other agreements and understandings between
such parties relating to the subject matter hereof and thereof. The Loan Documents represent the
final agreement between the parties and may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral
agreements between the parties.

     Section 12.13 GOVERNING LAW, SUBMISSION TO JURISDICTION.

     (a) This Agreement and the Notes shall be governed by, and construed in accordance with, the
Law of the State of New York (without giving effect to its conflicts of law rules other than
Section 5-1401 of the New York General Obligation Law) and applicable federal law; and the
Administrative Agent and the Lenders shall retain all rights arising under federal law.

     (b) Any legal action or proceeding with respect to the Loan Documents shall be brought in the
courts of the State of New York or of the United States of America for the Southern District of New
York, and, by execution and delivery of this Agreement, the Borrower and each Guarantor hereby
accepts for itself and (to the extent permitted by
Law) in respect of its Property, generally and unconditionally, the jurisdiction of the
aforesaid courts. Each of the Borrower and each Guarantor hereby irrevocably waives any objection,
including, without limitation, any objection to the laying of venue or based on the grounds of
forum non conveniens, which it may now or hereafter have to the bringing of any such action or
proceeding in such respective jurisdictions. This submission to jurisdiction is non-exclusive and
does not preclude the Administrative Agent or any Lender from obtaining jurisdiction over the
Borrower or any Guarantor in any court otherwise having jurisdiction.

     (c) The Borrower and each Guarantor hereby designates CT Corporation
System located at 111 Eighth Avenue, 13th Floor, New York, New York, 10011, or other

63

 

agent acceptable to the Administrative Agent, as the designee, appointee and agent of the Borrower
and each Guarantor to receive, for and on behalf of the Borrower and each Guarantor, service of
process in such respective jurisdictions in any legal action or proceeding with respect to the Loan
Documents. It is understood that a copy of such process served on such Administrative Agent will
be promptly forwarded by overnight courier to the Borrower and the relevant Guarantor at their
addresses set forth under its signature below, but the failure of the Borrower or such Guarantor to
receive such copy shall not affect in any way the service of such process. The Borrower and each
Guarantor further irrevocably consents to the service of process of any of the aforementioned
courts in any such action or proceeding by the mailing of copies thereof by registered or certified
mail, postage prepaid, to each of the Borrower and any Guarantor at its said address, such service
to become effective thirty (30) days after such mailing.

     (d) Nothing herein shall affect the right of the Administrative Agent or any Lender or any
holder of a Note to serve process in any other manner permitted by law or to commence legal
proceedings or otherwise proceed against the Borrower or any Guarantor in any other jurisdiction.

     (e) The Borrower, each Guarantor and each Lender hereby (i) irrevocably and unconditionally
waive, to the fullest extent permitted by law, trial by jury in any legal action or proceeding
relating to this Agreement or any Security Instrument and for any counterclaim therein; (ii)
irrevocably waive, to the maximum extent not prohibited by law, any right it may have to claim or
recover in any such litigation any special, exemplary, punitive or consequential damages, or
damages other than, or in addition to, actual damages; (iii) certify that no party hereto nor any
representative of the Administrative Agent or counsel for any party hereto has represented,
expressly or otherwise, or implied that such party would not, in the event of litigation, seek to
enforce the foregoing waivers, and (iv) acknowledge that it has been induced to enter into this
agreement, the security instruments and the transactions contemplated hereby and thereby by, among
other things, the mutual waivers and certifications contained in this Section 12.13.

     Section 12.14 USA PATRIOT Act Notice. Each Lender that is subject to the Act (as hereinafter
defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies
the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name and address of the
Borrower and other information that will allow such Lender or the Administrative Agent,
as applicable, to identify the Borrower in accordance with the Act.

     Section 12.15 Interest. It is the intention of the parties hereto to conform strictly to
applicable usury laws regarding the use, forbearance or detention of the indebtedness evidenced by
this Agreement, the Notes and the other Loan Documents, whether such laws are now or hereafter in
effect, including the laws of the United States of America or any other jurisdiction whose laws are
applicable, and including any subsequent revisions to or judicial interpretations of those laws, in
each case to the extent they are applicable to this Agreement, the Notes and the other Loan
Documents (the “Applicable Usury Laws”). Accordingly, if any acceleration of the maturity of the
Notes or any payment by Borrower or any other Person produces a rate in excess of the Highest
Lawful Rate or otherwise results in Borrower or such other Person being deemed to have paid any
interest in excess of the Maximum Amount, as hereinafter defined, or if any Lender shall for any
reason receive any unearned interest in violation of any Applicable Usury Laws, or if any
transaction contemplated hereby would otherwise be usurious under any Applicable Usury Laws, then,
in that event, regardless of any provision contained in this Agreement or

64

 

any other Loan Document or other agreement or instrument executed or delivered in connection
herewith, the provisions of this Section 12.15 shall govern and control, and neither Borrower nor
any other Person shall be obligated to pay, or apply in any manner to, any amount that would be
excessive interest. No Lender shall ever be deemed to have contracted for or be entitled to
receive, collect, charge, reserve or apply as interest on any Loan (whether termed interest therein
or deemed to be interest by judicial determination or operation of law), any amount in excess of
the Highest Lawful Rate, and, in the event that such Lender ever receives, collects, or applies as
interest any such excess, such amount which would be excessive interest shall be applied as a
partial prepayment of principal and treated hereunder as such, and, if the principal amount of the
applicable Loans are paid in full, any remaining excess shall forthwith be paid to Borrower. In
determining whether or not the interest contracted for, received, collected, charged reserved, paid
or payable, including under any specific contingency, exceeds the Highest Lawful Rate, Borrower and
each Lender shall, to the maximum extent permitted under applicable law, (i) characterize any
non-principal payment (other than payments which are expressly designated as interest payments
hereunder) as an expense or fee rather than as interest, (ii) exclude voluntary pre-payments and
the effect thereof, and (iii) amortize and spread the total amount of interest throughout the
entire stated term of the Loans so that the interest rate is uniform throughout such term; provided
that if the Loans are paid in full prior to the end of the full contemplated term hereof, and if
the interest received for the actual period of existence thereof exceeds the Highest Lawful Rate,
if any, then the Lenders shall refund to Borrower the amount of such excess, or credit the amount
of such excess against the aggregate unpaid principal balance of all Loans made by Lender. As used
herein, the term “Maximum Amount” means the maximum nonusurious amount of interest which may be
lawfully contracted for, reserved, charged, collected or received by Lender in connection with the
indebtedness evidenced by this Agreement, the Notes and other Loan Documents under all Applicable
Usury Laws. Texas Finance Code, Chapter 346, which regulates certain revolving loan accounts and
revolving tri-party accounts, shall not apply to any revolving loan accounts created under, or
apply in any manner to, the Note, this Agreement or the other Loan Documents.

     Section 12.16 Confidentiality. In the event that the Borrower provides to the Administrative
Agent or the Lenders written confidential information belonging to the Borrower, if the Borrower
shall denominate such information in writing as “confidential,” the Administrative Agent and the
Lenders shall thereafter maintain such information in confidence in
accordance with the standards of care and diligence that each utilizes in maintaining its own
confidential information. This obligation of confidence shall not apply to such portions of the
information which (i) are in the public domain, (ii) hereafter become part of the public domain
without the Administrative Agent or the Lenders breaching their obligation of confidence to the
Borrower, (iii) are previously known by the Administrative Agent or the Lenders from some source
other than the Borrower, (iv) are hereafter developed by the Administrative Agent or the Lenders
without using the Borrower’s information, (v) are hereafter obtained by or available to the
Administrative Agent or the Lenders from a third party who owes no obligation of confidence to the
Borrower with respect to such information or through any other means other than through disclosure
by the Borrower, (vi) are disclosed with the Borrower’s consent, (vii) must be disclosed either
pursuant to any Governmental Requirement or to Persons regulating the activities of the
Administrative Agent or the Lenders, provided Administrative Agent and Lenders shall endeavor to
provide notice to the Borrower as soon as practicable in the event Borrower desires to enjoin the
disclosure of such information, however, failure of Administrative Agent or Lenders to provide such
prior notice to Borrower shall not give rise to any claim or cause of action by Borrower or any
Obligor against Administrative Agent or such Lenders, or (viii) as may be required by law or
regulation or order of any Governmental Authority in any judicial, arbitration or governmental
proceeding. Further, the Administrative Agent or a Lender may disclose any such information to any
other Lender, any independent petroleum engineers or consultants, any independent certified public
accountants, any legal counsel employed by such Person in connection with this Agreement or any
Security Instrument, including without limitation, the enforcement or exercise of all rights and
remedies thereunder, or any assignee or participant (including prospective assignees and

65

 

participants) in the Loans; provided, however, that the Administrative Agent or the Lenders
shall receive a confidentiality agreement from the Person to whom such information is disclosed
such that said Person shall have the same obligation to maintain the confidentiality of such
information as is imposed upon the Administrative Agent or the Lenders hereunder. Notwithstanding
anything to the contrary provided herein, this obligation of confidence shall cease three (3)
years from the date the information was furnished, unless the Borrower requests in writing at
least thirty (30) days prior to the expiration of such three year period, to maintain the
confidentiality of such information for an additional three year period. The Borrower waives any
and all other rights it may have to confidentiality as against the Administrative Agent and the
Lenders arising by contract, agreement, statute or law except as expressly stated in this Section
12.16.

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

     [The remainder of this page intentionally left blank. Signatures begin on the next
page.]

66

 

     IN WITNESS WHEREOF, the undersigned, with the intent of being legally bound hereby, have
caused this Agreement to be executed as of this 26th day of July, 2006.

	 	 	 	 	 	 	 	 	 
	 	BORROWER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	ATLAS PIPELINE HOLDINGS, L.P.,	 	 
	 	a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Atlas Pipeline Holdings GP, LLC,
	 	 	 	 	its general partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Matthew A. Jones	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Matthew A. Jones	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Address for Notices:
	 	 	 	 	Atlas Pipeline Holdings, L.P.
	 	 	 	 	311 Rouser Road
	 	 	 	 	Moon Township, PA 15108
	 	 	 	 	Attention: Lisa Washington
	 	 	 	 	Telecopier No.: 412-262-2820
	 	 	 	 	Telephone No.: 412-262-2830  

[SIGNATURE PAGE TO THE CREDIT AGREEMENT]

 

 

	 	 	 	 	 	 	 	 	 
	 	GUARANTOR:	 	 
	 
	 	 	 	 	 	 	 	 
	 	ATLAS PIPELINE PARTNERS GP, LLC,	 	 
	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Atlas Pipeline Holdings, L.P.,
	 	 	 	 	its sole member
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Atlas Pipeline Holdings GP, LLC,
	 	 	 	 	 	 	its general partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Matthew A. Jones	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Matthew A. Jones	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Address for Notices:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Atlas Pipeline Holdings, L.P.
 311 Rouser Road
	 	 	 	 	Moon Township, PA 15108 
	 	 	 	 	Attention: Lisa Washington
 Telecopier No.: 412-262-2820
	 	 	 	 	Telephone No.: 412-262-2830  

[SIGNATURE PAGE TO THE CREDIT AGREEMENT]

 

 

	 	 	 	 	 	 	 
	 	 	ADMINISTRATIVE AGENT, ISSUING BANK 
AND A LENDER:
	 
	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION,
	 	 	as Administrative Agent, Issuing Bank and a Lender
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jay Buckman	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Jay Buckman	 	 
	 

	 	 	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Lending Office for Base Rate Loans and
	 	 	LIBOR Loans and Address for Notices:
	 
	 	 	 	 	 	 
	 	 	Wachovia Bank, National Association
	 	 	1001 Fannin, Suite 2255
	 	 	Houston, Texas 77002
	 	 	Telecopier No.: 713-650-6354
	 	 	Telephone No.: 713-346-2707
	 	 	Attention: Jay Buckman  

[SIGNATURE PAGE TO THE CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	LENDERS:	 
	 	 	 
	 	
BANK OF AMERICA, N.A. 

 	 
	 	By:  	/s/ Gregory B. Hanson
 	 
	 	 	Name:  	Gregory B. Hanson 	 
	 	 	Title:  	Vice President 	 
	 

[SIGNATURE PAGE TO THE CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	CITIBANK TEXAS, N.A.

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

[SIGNATURE PAGE TO THE CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	COMERICA BANK

 	 
	 	By:  	/s/ Huma Vadgama
 	 
	 	 	Huma Vadgama 	 
	 	 	Vice President 	 
	 

[SIGNATURE PAGE TO THE CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION 

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

[SIGNATURE PAGE TO THE CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A. 

 	 
	 	By:  	/s/ Bryan McDavid
 	 
	 	 	Name:  	Bryan McDavid  	 
	 	 	Title:  	Portfolio Manager 	 
	 

[SIGNATURE PAGE TO THE CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	BANK OF OKLAHOMA N.A.

 	 
	 	By:  	/s/ Lindsay D Sherrer
 	 
	 	 	Name:  	Lindsay D Sherrer 	 
	 	 	Title:  	Vice President 	 
	 

[SIGNATURE PAGE TO THE CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	COMPASS BANK

 	 
	 	By:  	/s/ Murray Brasseux
 	 
	 	 	Name   Murray Brasseux 	 
	 	 	Title    Executive Vice President 	 
	 

[SIGNATURE PAGE TO THE CREDIT AGREEMENT]

 

 

SCHEDULE 2.01

INITIAL MAXIMUM REVOLVER AMOUNTS

	 	 	 	 	 
	 	 	Maximum Revolver	 
	Lender	 	Amount	 
	Wachovia Bank, National Association
	 	$	8,250,000	 
	Bank of America, N.A.
	 	$	6,750,000	 
	Citibank Texas, N.A.
	 	$	6,750,000	 
	Comerica Bank
	 	$	6,750,000	 
	Key Bank National Association
	 	$	6,750,000	 
	Wells Fargo Bank, N.A.
	 	$	6,750,000	 
	Bank of Oklahoma N.A.
	 	$	4,000,000	 
	Compass Bank
	 	$	4.000.000	 
	 
	 	 	 
	TOTAL:
	 	$	50,000,000	 

Schedule 2.01

 

 

SCHEDULE 6.01

POST-CLOSING REQUIREMENTS

None.

SCHEDULE 6.01 TO CREDIT AGREEMENT — Page 1

 

 

SCHEDULE 7.03

LITIGATION

     None.

SCHEDULE 7.03 TO CREDIT AGREEMENT — Page 1

 

 

SCHEDULE 7.09

TAXES

     None.

	 	 	 
	 	SCHEDULE 7.09 TO CREDIT AGREEMENT	Page 1

 

 

SCHEDULE 7.10

TITLES

     None.

	 	 	 
	 	SCHEDULE 7.10 TO CREDIT AGREEMENT	Page 1

 

 

SCHEDULE 7.13

SUBSIDIARY INTERESTS

	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	Number of
	Subsidiaries	 	Owner	 	Authorized Shares	 	Issued Shares
	Atlas Pipeline Partners GP, LLC

	 	Atlas Pipeline Holdings, L.P.
	 	N/A
	 	N/A

	 	 	 	 	 	 	 
	 	SCHEDULE 7.13 TO CREDIT AGREEMENT	 	 	 	Page 1

 

 

SCHEDULE 7.18

INSURANCE

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Coverage Type	 	Policy Number	 	Insurance Carrier	 	Coverage Description	 	Limit	 	Deductible	 	Exp. Date
	1st Layer Directors &
	 	492-58-43	 	National Union Fire	 	Limit of Liability	 	$10,000,000	 	$250,000*	 	6/30/2007
	Officers Liability
	 	 	 	Insurance Co.	 	*Corporate Reimbursement	 	 	 	 	 	 
	 
	 	 	 	 	 	Continuity Date: 9/27/2000	 	 	 	 	 	 
	 
	 	 	 	 	 	SEC Claims Retention	 	 	 	$350,000	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2nd Layer Directors
	 	ELU089358-05	 	XL Specialty Insurance	 	Limit of Liability Following	 	$10,000,000	 	Excess of	 	6/30/2007
	& Officers Liability
	 	 	 	Co.	 	Form	 	 	 	National	 	 
	 
	 	 	 	 	 	 	 	 	 	Union	 	 

	 	 	 	 	 	 	 
	 	SCHEDULE 7.18 TO CREDIT AGREEMENT	 	 	 	Page 1

 

 

SCHEDULE 7.19

HEDGING AGREEMENTS

None.

	 	 	 	 	 	 	 
	 	SCHEDULE 7.19 TO CREDIT AGREEMENT	 	 	 	Page 1

 

 

SCHEDULE 7.21

MATERIAL AGREEMENTS

1. Amended and Restated Agreement of Limited Partnership of Atlas Pipeline
Holdings, L.P. dated as of                     , 2006.

2. Amended and Restated Limited Liability Company Agreement of Atlas Pipeline Partners GP,
LLC dated as of September 24, 2003.

	 	 	 	 	 	 	 
	 	SCHEDULE 9.01 TO CREDIT AGREEMENT	 	 	 	Page 1

 

 

SCHEDULE 9.01

DEBT

None.

	 	 	 	 	 	 	 
	 	SCHEDULE 9.01 TO CREDIT
AGREEMENT — Page 1	 	 	 	 

 

 

EXHIBIT A

FORM OF REVOLVER NOTE

	 	 	 
	                    , 2006

	 	$                    

     FOR VALUE RECEIVED, ATLAS PIPELINE HOLDINGS, L.P., a Delaware limited
partnership (the “Borrower”), hereby promises to pay to the order of                     , a
                    
(the “Lender”), at the Principal Office of Wachovia Bank, National Association
(the “Administrative Agent”) at 301 South College Street, Charlotte, North Carolina 28288, the
principal sum of                      DOLLARS AND NO/100 ($                    ) or such
lesser amount as shall equal the aggregate unpaid principal amount of the Loans made by the Lender
to the Borrower under the Credit Agreement as hereinafter defined), in lawful money of the United
States of America and in immediately available funds, on the dates and in the principal amounts
provided in the Credit Agreement, and to pay interest on the unpaid principal amount of each such
Loan, at such office, in like money and funds, for the period commencing on the date of such Loan
until such Loan shall be paid in full, at the rates per annum and on the dates provided in the
Credit Agreement.

     The date, amount, Type, interest rate, Interest Period and maturity of each Loan made by the
Lender to the Borrower, and each payment made on account of the principal thereof, shall be
recorded by the Lender on its books and, prior to any transfer of this Revolver Note, endorsed by
the Lender on the schedules attached hereto or any continuation thereof.

     This Revolver Note is one of the “Revolver Notes” referred to in the Revolving Credit
Agreement dated as of July 26, 2006, among the Borrower, Atlas Pipeline Partners GP, LLC, as
Guarantor, the Lenders which are or become parties thereto (including the Lender) and the
Administrative Agent (as the same may be renewed, extended, amended or restated from time to time,
the “Credit Agreement”), and evidences Loans made by the Lender thereunder. Capitalized terms used
in this Revolver Note have the respective meanings assigned to them in the Credit Agreement.

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

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

Remainder of Page Intentionally Blank. Signature Page to Follow.

Exhibit A — Page 1

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	ATLAS PIPELINE HOLDINGS, L.P.,	 	 
	 	 	a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Atlas Pipeline Holdings GP, LLC,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

Exhibit A — Page 2

 

 

EXHIBIT B

FORM OF BORROWING, CONTINUATION AND CONVERSION REQUEST

                    , 200___

     ATLAS PIPELINE HOLDINGS, L.P., a Delaware limited partnership (the “Borrower”),
pursuant to the Revolving Credit Agreement dated as of July 26, 2006, among the Borrower, Atlas
Pipeline Partners GP, LLC, as Guarantor, Wachovia Bank, National Association, as Administrative
Agent for the lenders (the “Lenders”) which are or become parties thereto, and such Lenders
(together with all amendments or supplements thereto, the “Credit Agreement”), hereby makes the
requests indicated below (unless otherwise defined herein, capitalized terms are defined in the
Credit Agreement):

	 	 	 	 	 	 	 
	o

	 	 	1.	 	 	Loans:
	 
	 	 	 	 	 	 
	 

	 	 	(a	)	 	Aggregate amount of new Loans to be $                    ;
	 
	 	 	 	 	 	 
	 

	 	 	(b	)	 	under the Revolver Facility;
	 
	 	 	 	 	 	 
	 

	 	 	(c	)	 	Requested funding date is                     , 200___;
	 
	 	 	 	 	 	 
	 

	 	 	(d	)	 	$                     of such borrowings are to be LIBOR Loans;
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	$                     of such borrowings are to be Base Rate Loans; and
	 
	 	 	 	 	 	 
	 

	 	 	(e	)	 	Length of Interest Period for LIBOR Loans is:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	        
              
     
             .
	 
	 	 	 	 	 	 
	o

	 	 	2.	 	 	LIBOR Loan Continuation for LIBOR
Loans maturing on                    :
	 
	 	 	 	 	 	 
	 

	 	 	(a	)	 	Aggregate amount to be continued as LIBOR Loans is $                    ;
	 
	 	 	 	 	 	 
	 

	 	 	(b	)	 	Aggregate amount to be converted to Base Rate Loans is $                    ;
	 
	 	 	 	 	 	 
	 

	 	 	(c	)	 	Under the Revolver Facility; and
	 
	 	 	 	 	 	 
	 

	 	 	(d	)	 	Length of Interest Period for continued LIBOR Loans is                     .
	 
	 	 	 	 	 	 
	o

	 	 	3.	 	 	Conversion of Outstanding Base Rate Loans to LIBOR Loans:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Convert $                     of the outstanding Base Rate Loans under the
Revolver Facility to LIBOR Loans on                      with an Interest
Period of                     .

Exhibit B — Page 1

 

 

	 	 	 	 	 	 	 
	o

	 	 	4.	 	 	Conversion of outstanding LIBOR Loans to Base Rate Loans:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Convert $                     of the outstanding LIBOR Loans under the
Revolver Facility with Interest Period maturing on                     , 200___,
to Base Rate Loans.

     The undersigned certifies that he is the                      of Atlas Pipeline Holdings GP,
LLC, the general partner of the Borrower, and that as such he is authorized to execute this
certificate on behalf of the Borrower. The undersigned further certifies, represents and warrants
on behalf of the Borrower that the Borrower is entitled to receive the requested borrowing,
continuation or conversion under the terms and conditions of the Credit Agreement.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	ATLAS PIPELINE HOLDINGS, L.P.,	 	 
	 	 	a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	By: 	Atlas Pipeline Holdings GP, LLC,	 	 
	 	 	 	 	a Delaware limited liability company,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	By: 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

Exhibit B — Page 2

 

 

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

     The undersigned hereby certifies that he is the                      of Atlas Pipeline
Holdings GP, LLC, the general partner of ATLAS PIPELINE HOLDINGS, L.P., a Delaware limited
partnership (the “Borrower”), and that as such he is authorized to execute this certificate on
behalf of the Borrower. With reference to the Revolving Credit Agreement dated as of July 26, 2006,
among the Borrower, Atlas Pipeline Partners GP, LLC, a Delaware limited liability company (the
“Obligor,” and with the Borrower collectively, the “Obligors”), and Wachovia Bank, National
Association, as Administrative Agent for the lenders (the “Lenders”) which are or become a party
thereto (together with all amendments or supplements thereto being the “Credit Agreement”), the
undersigned represents and warrants as follows (each capitalized term used herein having the same
meaning given to it in the Credit Agreement unless otherwise specified):

     (a) The representations and warranties of the Obligors contained in
Article VII of the Credit Agreement and in the Security Instruments and otherwise made in
writing by or on behalf of the Obligors pursuant to the Credit Agreement and the Security
Instruments were true and correct when made, and are repeated at and as of the time of
delivery hereof and are true and correct at and as of the time of delivery hereof, except as
such representations and warranties are modified to give effect to the transactions expressly
permitted by the Credit Agreement.

     (b) The Obligors have performed and complied with all agreements and conditions
contained in the Credit Agreement and in the Security Instruments required to be performed or
complied with by them prior to or at the time of delivery hereof.

     (c) None of the Obligors nor any Subsidiary has incurred any material
liabilities, direct or contingent, since                     , 200___, except those set forth in
Schedule 9.01 to the Credit Agreement and except those allowed by the terms of the Credit
Agreement or consented to by the Lenders in writing.

     (d) Since                     , 200___, no change has occurred, either in any case or in
the aggregate, in the condition, financial or otherwise, of the Obligors or any Subsidiary
which would have a Material Adverse Effect.

     (e) There exists, and, after giving effect to the loan or loans with respect to
which this certificate is being delivered, will exist, no Default under the Credit Agreement
or any event or circumstance which constitutes, or with notice or lapse of time (or both)
would constitute, an event of default under any loan or credit agreement, indenture, deed of
trust, security agreement or
other agreement or instrument evidencing or pertaining to any Debt of the Obligors or any
Subsidiary, or under any material agreement or instrument to which any Obligor or any
Subsidiary is a party or by which any Obligor or any Subsidiary is bound.

     (f) The financial statements furnished to the Administrative Agent with this
certificate fairly present the consolidated financial condition and results of operations of

Exhibit C — Page 1

 

 

the Borrower and its Consolidated Subsidiaries as at the end of, and for, the
[fiscal quarter] [fiscal year] ending                      and such financial statements have been
approved in accordance with the accounting procedures specified in the Credit Agreement.

     (g) Attached hereto are the detailed computations necessary to determine whether the
Borrower and its Consolidated Subsidiaries are in compliance with Sections 9.13, 9.14 and 9.15
of the Credit Agreement as of the end of the [fiscal quarter] [fiscal year]
ending                     .

EXECUTED
AND DELIVERED this___ day of                     , 2006.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	ATLAS PIPELINE HOLDINGS, L.P.,	 	 
	 	 	a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	By: 	Atlas Pipeline Holdings GP, LLC,	 	 
	 	 	 	 	a Delaware limited liability company,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	By: 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

Exhibit C — Page 2

 

 

EXHIBIT D

SECURITY INSTRUMENTS

	1.	 	Pledge and Security Agreement dated July 26, 2006, from Atlas Pipeline Holdings, L.P. and
Atlas Pipeline Partners GP, LLC to Wachovia Bank, National Association, Administrative Agent.

Exhibit D — Page 1

 

 

EXHIBIT E

FORM OF ASSIGNMENT AND ASSUMPTION

ASSIGNMENT AND ASSUMPTION

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

     For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations as a Lender under the Credit Agreement and any other documents or
instruments delivered pursuant thereto to the extent related to the amount and percentage interest
identified below of all of such outstanding rights and obligations of the Assignor under the
respective facilities identified below (including, without limitation, the Letters of Credit
included in such facilities) and (ii) to the extent permitted to be assigned under applicable law,
all claims, suits, causes of action and any other right of the Assignor (in its capacity as a
Lender) against any Person, whether known or unknown, arising under or in connection with the
Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan
transactions governed thereby or in any way based on or related to any of the foregoing, including,
but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all
other claims at law or in equity related to the rights and obligations sold and assigned pursuant
to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii)
above being referred to herein collectively as, the “Assigned Interest”). Such sale and assignment
is without recourse to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

	 	 	 	 	 
	1.

	 	Assignor:
	 	                    
                    
                    
                    
	 
	 	 	 	 
	2.

	 	Assignee:
	 	                    
                    
                    
                    
	 

	 	 	 	[Assignee is an Affiliate/Approved Fund of [identify Lender]1]
	 
	 	 	 	 
	3.

	 	Borrower:
	 	Atlas Pipeline Holdings, L.P.
	 
	 	 	 	 
	4.

	 	Administrative Agent:
	 	Wachovia Bank, National Association, as the administrative agent
	 

	 	 	 	under the Credit Agreement

 

			
	1	 	Select or delete as applicable.

Exhibit E — Page 1

 

 

	 	 	 	 	 
	5.

	 	Credit Agreement:
	 	Revolving
Credit Agreement
dated as of July 26,
2006, among Atlas
Pipeline Holdings,
L.P., Atlas Pipeline
Partners GP, LLC, as
Guarantor, the
Lenders from time to
time party thereto,
and Wachovia Bank,
National Association, as Administrative Agent
	 
	 	 	 	 
	6.

	 	Assigned Interest:	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate	 	 	 	 	 	 
	 	 	Amount of	 	Amount of	 	Percentage	 	 
	 	 	Commitment/Loans	 	Commitment/Loans	 	Assigned of	 	CUSIP
	Facility Assigned	 	for all Lenders	 	Assigned	 	Commitment/Loans	 	Number
	                    
	 	$	                    	 	 	$	                    	 	 	 	                    	%	 	 	 	 
	                    
	 	$	                    	 	 	$	                    	 	 	 	                    	%	 	 	 	 

[7. Trade Date:                         ]

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

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

	 	 	 	 	 	 	 
	 	 	ASSIGNOR	 	 
	 	 	[NAME OF ASSIGNOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

  Title:
	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE	 	 
	 	 	[NAME OF ASSIGNEE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

  Title:
	 	 

[Consented to and] Accepted:

	 	 	 	 	 
	WACHOVIA BANK, NATIONAL ASSOCIATION,	 	 
	as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title:
	 	 

[Consented to:]

Exhibit E — Page 2

 

 

	 	 	 	 	 	 	 	 	 	 	 
	WACHOVIA BANK, NATIONAL ASSOCIATION,

as Issuing Bank	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	[Consented to:]	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ATLAS PIPELINE HOLDINGS, L.P.,

a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	Atlas Pipeline Holdings GP, LLC,

a Delaware limited liability company,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

Exhibit E - Page 3

 

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1.  Representations and Warranties.

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

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

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

Exhibit E - Page 4

 

 

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

Exhibit E - Page 5

 

 

EXHIBIT F

FORM OF CONSENT TO ASSIGNMENT

     The undersigned (the “Counterparty”) acknowledges that [                                        ], a
[                     ] (“Debtor”), for the purpose of securing obligations of the Debtor incurred pursuant to
the Credit Agreement hereinafter referenced, has collaterally assigned or may in the future
collaterally assign to Wachovia Bank, National Association, as administrative agent (together with
its successors and assigns in such capacity, the “Administrative Agent”), for the benefit of the
Lenders referenced above, all of such Debtor’s right, title, interest, claim, and demand in,
under, and to the Assigned Agreements (as such term is herein defined), and all accounts and
general intangibles consisting of, relating to or otherwise arising out of such Debtor’s right,
title, interest, claim, and demand in and to all of such Debtor’s rights to payment of every kind
under and by virtue of the Assigned Agreements (defined below). The Counterparty further
acknowledges that the rights and interests of the Debtor to receive proceeds under the Assigned
Agreements, as applicable, together with any security interests securing the payment thereof, have
been pledged to the Administrative Agent as collateral for the Indebtedness (as defined in the
Credit Agreement) under the Credit Agreement, for the benefit of the Lenders.

     As a condition to the Lenders extending credit as contemplated by the Credit Agreement, the
Administrative Agent and the Lenders have required the execution and delivery of this Consent to
Assignment (this “Consent”). Accordingly, each of the undersigned agrees as follows:

     1. Definitions.

     (a) The following capitalized terms shall have the meanings set forth below:

     Assigned Agreements means each of the agreements described on Exhibit A attached
hereto and each other agreement entered into by the Counterparty and any Debtor, as the
same may be amended or replaced from time to time.

     Credit Agreement means the Revolving Credit Agreement dated as of July 26, 2006, among
Atlas Pipeline Holdings, L.P., a Delaware limited partnership (the “Borrower”), Atlas
Pipeline Partners GP, LLC, a Delaware limited liability company (the “Guarantor”), and
Wachovia Bank, National Association, as Administrative Agent and the lenders from time to
time parties thereto (collectively, the “Lenders”), as the same may from time to time be
renewed, extended, amended or restated.

     (b) All capitalized terms used but not defined herein shall have the meaning set forth
in the Credit Agreement.

     2. Consent to Assignment. The Counterparty (a) agrees and consents to the
collateral assignment by the Debtor to the Administrative Agent of such Debtor’s rights under the
Assigned Agreements, (b) subject to the terms of the Assigned Agreements, agrees to perform its
respective obligations under each Assigned Agreement to which it is a party, and (c) agrees, upon
the occurrence and during the continuance of an Event of Default under the Credit Agreement and
receipt of notice thereof from the Administrative Agent, to deliver any proceeds which the Debtor
is entitled to receive under the applicable Assigned Agreements directly to the Administrative
Agent.

     3. Assigned Agreements. The Counterparty (a) represents and warrants as of the date
hereof that (i) each Assigned Agreement is currently in full force and effect, (ii) there have been
no

Exhibit F - Page 1

 

 

amendments or modifications to any Assigned Agreement, and (iii) there are no defaults on
the part of the Counterparty under any Assigned Agreement, and (b) confirms that as of the date
hereof (i) it is not aware of any sale or assignment or grant of security or other interests in
any Assigned Agreement by the Debtor, other than with respect to liens granted in connection with
the Credit Agreement, (ii) it has no knowledge of any default under any Assigned Agreement on the
part of the Debtor party thereto, and (iii) it has no knowledge of any event that has occurred
that would constitute a default under any Assigned Agreement upon the giving of notice or the
lapse of time or both.

     4. Foreclosure. The Counterparty agrees that in the event the Administrative Agent
exercises its rights to foreclose on all or any part of the interest of the Debtor in and to any
Assigned Agreement(s), or upon a transfer of the Assigned Agreements by conveyance in lieu of
foreclosure (the purchaser at foreclosure or the transferee in lieu of foreclosure, including the
Administrative Agent if it is such purchaser or transferee, being herein called “New Owner”), such
applicable Assigned Agreement(s) shall continue in full force and effect as a direct agreement
between the Counterparty and New Owner; provided, that the Assigned Agreements are otherwise in
full force and effect and in all cases subject to the terms, covenants, conditions and agreements
set forth in the applicable Assigned Agreement(s); and provided further, that (a) the
Administrative Agent or other New Owner shall first cure all outstanding defaults of the Debtor
under the applicable Assigned Agreement, and (b) the New Owner is approved by the Counterparty.
The Counterparty agrees it shall give such approval if the New Owner has industry experience and
its financial condition is acceptable to the Counterparty acting in good faith and in a
commercially reasonable manner, and such New Owner assumes the obligations of the Debtor under the
applicable Assigned Agreement(s) pursuant to an assumption agreement reasonably satisfactory to the
Counterparty; provided, however, that in no event shall the New Owner be: (x) liable for any act,
omission, default, misrepresentation, or breach of warranty by any Debtor, nor shall New Owner be
liable for any Debtor’s obligations accruing prior to New Owner’s assumption of the applicable
Assigned Agreement(s), other than the obligations to cure all outstanding defaults of the Debtor
under the applicable Assigned Agreement as set forth in clause (a) of the second proviso of the
preceding sentence; (y) subject to any offset, defense, claim or counterclaim which the Debtor
might be entitled to assert against any previous counterparty; or (z) bound by any amendment or
modification of an Assigned Agreement made in contravention of the terms of the Credit Agreement,
unless any such amendment or modification has been consented to or waived by the Administrative
Agent.

     5. Collateral Access. To the extent that the Debtor’s property constituting
Collateral is located at, on or in any property of the Counterparty subject to an Assigned
Agreement, the Counterparty agrees that after the occurrence and during the continuance of an Event
of Default, the Counterparty shall permit the Administrative Agent to have access to such
Collateral during normal business hours to prepare and show the Collateral for sale and/or conduct
a sale thereof, or remove the Collateral from such locations; provided, that such sale or removal
of the Collateral is completed within a commercially reasonable period of time (not to exceed 90
days). In addition, such occupancy shall otherwise be subject to and in accordance with the terms
of the applicable Assigned Agreement.

     6. Subordination. The Counterparty agrees that to the extent that it has a lien in or
on, or a possessory right to, any Collateral located on any property of the Counterparty subject to
an Assigned Agreement, the Counterparty subordinates such lien in favor of the liens and security
interests held by the Administrative Agent to secure the Indebtedness under the Credit Agreement;
provided however, that in no event shall such subordination prevent the Counterparty from (a)
exercising any other right or remedy it may have under any Assigned Agreement (other than any
rights relating to liens in favor of the Counterparty provided for in the applicable Assigned
Agreement, which liens are expressly subordinated in favor of the liens and security interests held
by Administrative Agent, as provided herein), including, but not limited to, any right to terminate
any such Assigned Agreement, or (b) receiving or enforcing its right to receive payments under the
Assigned Agreements (other than through the enforcement of liens in

Exhibit F - Page 2

 

 

favor of the Counterparty provided for in the applicable Assigned Agreement) or under this
Consent, including, but not limited to, any payments to be made under Section 4 hereof.

     7. Notices. The Counterparty agrees it will send to the Administrative Agent a copy of
each written notice delivered by the Counterparty to the Debtor which relates to any alleged
default under the Assigned Agreements. Such copy shall be delivered to the Administrative Agent at:

Wachovia Bank, National Association

1001 Fannin, Suite 2255

Houston, Texas 77002

Attention: Jay Buckman

Telephone No.: (713) 650-2716

Facsimile No.: (713) 650-6354

     8. Right to Cure. The Administrative Agent, at its option, shall have the right to
perform any of the Debtor’s responsibilities under the Assigned Agreements (subject, in each case,
to the terms of the applicable agreement), and shall have at least 30 days to cure any default
thereunder after notice to the Administrative Agent of such default. Subject to the provisions of
Section 4 of this Consent, the Administrative Agent shall not have any obligation to perform the
Debtor’s obligations under the Assigned Agreements unless such obligations are expressly assumed in
writing by an instrument executed by the Administrative Agent.

     9. Amendments to Credit Agreements and Related Loan Documents. The Administrative
Agent and the Lenders may enter into renewals and extensions of, amendments to, and waivers under,
the Credit Agreement and other Loan Documents as therein defined without the consent of the
Counterparty that is not a party to such Loan Document.

     10. Amendments. Any provision of this Consent may be amended or waived if, and only
if, such amendment or waiver is in writing and signed by each of the undersigned and the
Administrative Agent.

     11. Counterparts. This Consent may be signed in any number of counterparts, each of
which shall be an original, and all of which taken together shall constitute a single agreement,
with the same effect as if the signatories thereto and hereto were upon the same instrument. This
Consent shall become effective when executed by each of the parties listed on the signature pages
hereof.

     12. Binding Effect. This Consent shall be binding upon each of the undersigned and
their permitted successors and assigns, and shall inure to the benefit of the Administrative Agent,
the Lenders, and their respective successors and assigns. This Consent shall be governed by, and
construed in accordance with, the laws of the state of New York and applicable United States
federal law.

Exhibit F - Page 3

 

 

	 	 	 	 	 	 	 
	EXECUTED as of [___] [___], 20 [___]
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	[                                                            
              ]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Exhibit F - Page 4

 

 

	 	 	 	 	 
	Acknowledged by:	 	 
	 
	 	 	 	 
	WACHOVIA BANK, NATIONAL ASSOCIATION

as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

Exhibit F - Page 5

 

 

EXHIBIT A

ASSIGNED AGREEMENTS

(To be Provided)

Exhibit F - Page 6

 

 

EXHIBIT G

FORM OF GUARANTY

     THIS CONTINUING GUARANTY AGREEMENT (this “Guaranty Agreement”), dated as of
[                    ] [____], 20[___], is made by                                          , a         
             [limited liability company/limited
partnership] (the “Guarantor”), in favor of WACHOVIA BANK, NATIONAL ASSOCIATION, as administrative
agent for the Lenders (the “Administrative Agent”).

W I T N E S S E T H:

     WHEREAS, the Lenders have agreed to make extensions of credit including but not limited to
Loans and Letters of Credit in the maximum aggregate principal amount not to exceed $50,000,000 at
any one time outstanding (as such amount may be increased pursuant to the terms of the Credit
Agreement referenced below) to Atlas Pipeline Holdings, L.P., a Delaware limited partnership (the
“Borrower”), pursuant to that certain Revolving Credit Agreement dated as of July 26, 2006, by and
among the Borrower, Atlas Pipeline Partners GP, LLC, a Delaware limited liability company, as
Guarantor, the financial institutions party thereto (collectively, the “Lenders”), and Wachovia
Bank, National Association, in its capacity of the issuer of certain letters of credit and as the
Administrative Agent for the Lenders thereunder (the Credit Agreement, together with the exhibits
and schedules thereto and all extensions, renewals, amendments, substitutions and replacements
thereto and thereof, is herein referred to as the “Credit Agreement”);

     WHEREAS, (i) the Letters of Credit may be issued under the Credit Agreement for the account
of one or more of the Guarantors, (ii) the proceeds of the Loans under the Credit Agreement may be
used by the Borrower to make loans to one or more of the Guarantors, for general corporate
purposes of the Borrower and the Guarantors, and for other purposes set forth in the Credit
Agreement, and (iii) Hedging Agreements may be entered into by one or more of the Guarantors and
any Lender or its Affiliate, all as permitted pursuant to the Credit Agreement and all of which
will directly and indirectly benefit the Borrower and the Guarantors;

     WHEREAS, as a condition precedent to extending credit to the Borrower pursuant to the Credit
Agreement, the Lenders have required that, inter alia, each of the Guarantors execute and deliver
to the Administrative Agent, for and on behalf of the Lenders, a guaranty agreement;

     WHEREAS, the Guarantor has determined, reasonably and in good faith, that (i) it has adequate
capital to conduct its business as presently conducted and as proposed to be conducted, (ii) it
will be able to meet its obligations hereunder and in respect of its existing and future
indebtedness and liabilities (contingent or otherwise) as and when the same shall become due and
payable, including those under this Guaranty Agreement, (iii) it is otherwise solvent and (iv) the
execution and delivery of this Guaranty Agreement and the consummation of the transactions
contemplated hereby will not render it insolvent;

     WHEREAS, the Guarantor has determined that the execution and delivery of this Guaranty
Agreement is in furtherance of its organizational purposes and in its best interest and that it
will derive substantial benefit, whether directly or indirectly, from the making of this Guaranty
Agreement, having regard for all relevant facts and circumstances; and

     WHEREAS, the Guarantor has agreed to execute and deliver this Guaranty Agreement to the
Administrative Agent, for the benefit of the Lenders.

Exhibit G - Page 1

 

 

     NOW THEREFORE, for good and valuable consideration the receipt of which is hereby
acknowledged, and in order to induce the Lenders to make Loans to the Borrower pursuant to the
Credit Agreement by fulfilling the requirements of the Credit Agreement, the Guarantor agrees, for
the benefit of each Lender, as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1 Certain Terms. The following capitalized terms when used in this Guaranty
Agreement, including its preamble and recitals, shall have the following meanings (such
definitions to be equally applicable to the singular and plural forms thereof):

     “Administrative Agent” is defined in the preamble.

     “Borrower” is defined in the first recital.

     “Commitments” means each Commitment as defined in the Credit Agreement.

     “Credit Agreement” is defined in the first recital.

     “Guarantor” is defined in the preamble.

     “Guaranty Agreement” is defined in the preamble.

     “Lenders” is defined in the first recital.

     “Subsidiary Guarantor” means Subsidiaries of Borrower that have guaranteed all or any part of
the Indebtedness.

     “Taxes” is defined in clause (1) of Section 2.7.

     “U.C.C”
means the Uniform Commercial Code as in effect in the State of New York.

     SECTION 1.2 Credit Agreement Definitions. Unless otherwise defined herein or the
context otherwise requires, capitalized terms used in this Guaranty Agreement, including its
preamble and recitals, have the meanings provided in the Credit Agreement.

     SECTION 1.3 U.C.C. Definitions. Unless otherwise defined herein or the context
otherwise requires, terms for which meanings are provided in the U.C.C. are used in this Guaranty
Agreement, including its preamble and recitals, with such meanings.

ARTICLE II

GUARANTY PROVISIONS

     SECTION 2.1 Guaranty Agreement. The Guarantor hereby absolutely, unconditionally, and
irrevocably (1) guarantees the full and punctual payment when due, whether at stated maturity, by
required prepayment, declaration, acceleration, demand or otherwise, of all Indebtedness of the
Borrower and each other Obligor now or hereafter existing under each of the Credit Agreement, the
Notes and each other Loan Document to which the Borrower or such other Obligor is or may become a
party, whether for

Exhibit G - Page 2

 

 

principal, interest, fees, expenses or otherwise (including all such amounts which would
become due but for the operation of the automatic stay under Section 362(a) of the United States
Bankruptcy Code, 11 U.S.C. §362(a), and the operation of Sections 502(b) and 506(b) of the United
States Bankruptcy Code, 11 U.S.C. §502(b) and §506(b)), and (2) indemnifies and holds harmless
each Lender and each holder of a Note for any and all costs and expenses (including reasonable
attorney’s fees and expenses) incurred by such Lender or such holder, as the case may be, in
enforcing any rights under this Guaranty Agreement; provided, however, that the Guarantor shall be
liable under this Guaranty Agreement for the maximum amount of such liability that can be hereby
incurred without rendering this Guaranty Agreement, as it relates to the Guarantor, voidable under
applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater
amount. This Guaranty Agreement constitutes a guaranty of payment when due and not of collection,
and the Guarantor specifically agrees that it shall not be necessary or required that any Lender
or any holder of any Note exercise any right, assert any claim or demand or enforce any remedy
whatsoever against the Borrower or any other Obligor (or any other Person) before or as a
condition to the obligations of the Guarantor hereunder.

     SECTION 2.2 Acceleration of Guaranty Agreement. The Guarantor agrees that, in the
event of the occurrence of any event of the type described in Section 10.01(e), (f) or (g) of the
Credit Agreement, with respect to the Borrower, any other Obligor or the Guarantor, and if such
event shall occur at a time when any of the Indebtedness may not then be due and payable by the
Borrower due to any automatic stay or other debtor relief laws, the Guarantor will pay to the
Lenders forthwith the full amount which would be payable hereunder by the Guarantor if all such
Indebtedness were then due and payable.

     SECTION 2.3 Guaranty Agreement Absolute, etc. This Guaranty Agreement shall in all
respects be a continuing, absolute, unconditional and irrevocable guaranty of payment, and shall
remain in full force and effect until all Indebtedness of the Borrower and each other Obligor has
been paid in full, all obligations of the Guarantor hereunder shall have been paid in full, all
Commitments shall have terminated and all Hedging Agreements have terminated. Guarantor may not
rescind or revoke its obligations hereunder. The Guarantor guarantees that the Indebtedness of the
Borrower and each other Obligor will be paid strictly in accordance with the terms of the Credit
Agreement and each other Loan Document under which they arise, regardless of any law, regulation
or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights
of any Lender or any holder of any Note with respect thereto. The liability of the Guarantor under
this Guaranty Agreement shall be absolute, unconditional and irrevocable irrespective of: (1) any
lack of validity, legality or enforceability of the Credit Agreement, any Note or any other Loan
Document; (2) the failure of any Lender or any holder of any Note (a) to assert any claim or
demand or to enforce any right or remedy against the Borrower, any other Obligor or any other
Person (including any other guarantor) under the provisions of the Credit Agreement, any Note, any
other Loan Document or otherwise, or (b) to exercise any right or remedy against any other
guarantor of, or collateral securing, any Indebtedness of the Borrower or any other Obligor; (3)
any change in the time, manner or place of payment of, or in any other term of, all or any of the
Indebtedness of the Borrower or any other Obligor, or any other extension, compromise or renewal
of any Indebtedness of the Borrower or any other Obligor; (4) any reduction, limitation,
impairment or termination of any Indebtedness of the Borrower or any other Obligor for any reason,
including any claim of waiver, release, surrender, alteration or compromise, and shall not be
subject to (and the Guarantor hereby waives any right to or claim of) any defense or setoff,
counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality,
nongenuineness, irregularity, compromise, unenforceability of, or any other event or occurrence
affecting, any Indebtedness of the Borrower, any other Obligor or otherwise; (5) any amendment to,
rescission, waiver, or other modification of, or any consent to departure from, any of the terms
of the Credit Agreement, any Note or any other Loan Document; (6) any addition, exchange, release,
surrender or non-perfection of any collateral, or any amendment to or waiver or release or
addition of, or consent to departure from, any other guaranty, held

Exhibit G - Page 3

 

 

by any Lender or any holder of any Note securing any of the Indebtedness of the Borrower
or any other Obligor; (7) the insolvency or bankruptcy of, or similar event affecting, the
Borrower or any other Obligor; or (8) any other circumstance which might otherwise constitute a
defense available to, or a legal or equitable discharge of, the Borrower, any other Obligor, any
surety or any guarantor. Guarantor waives all rights and defenses which may arise with respect to
any of the foregoing, and Guarantor waives any right to revoke this Guaranty Agreement with
respect to future indebtedness. Guarantor waives all rights or defenses under common law, in
equity, under contract, by statute, or otherwise.

     SECTION 2.4 Reinstatement. The Guarantor agrees that this Guaranty Agreement shall
continue to be effective or be reinstated, as the case may be, if at any time any payment (in
whole or in part) of any of the Indebtedness is rescinded or must otherwise be restored by any
Lender or any holder of any Note, upon the insolvency, bankruptcy or reorganization of the
Borrower, any other Obligor or otherwise, all as though such payment had not been made.

     SECTION 2.5 Waiver, etc. The Guarantor hereby waives promptness, diligence, notice of
acceptance and any other notice with respect to any of the Indebtedness of the Borrower or any
other Obligor and this Guaranty Agreement and any requirement that the Administrative Agent, any
other Lender or any holder of any Note protect, secure, perfect or insure any security interest or
Lien, or any property subject thereto, or exhaust any right or take any action against the
Borrower, any other Obligor or any other Person (including any other guarantor) or entity or any
collateral securing the Indebtedness of the Borrower or any other Obligor, as the case may be.

     SECTION 2.6 Waiver of Subrogation. Until the Indebtedness is paid in full, all
Commitments have terminated and all Hedging Agreements have terminated, the Guarantor shall not
enforce or exercise any claim or other rights which it may now or hereafter acquire against the
Borrower or any other Obligor that arise from the existence, payment, performance or enforcement
of the Guarantor’s obligations under this Guaranty Agreement or any other Loan Document, including
any right of subrogation, reimbursement, exoneration, or indemnification, any right to participate
in any claim or remedy of the Lenders against the Borrower or any other Obligor or any collateral
which the Administrative Agent now has or hereafter acquires, whether or not such claim, remedy or
right arises in equity, or under contract, statute or common law, including the right to take or
receive from the Borrower or any other Obligor, directly or indirectly, in cash or other property
or by set-off or in any manner, payment or security on account of such claim or other rights. If
any amount shall be paid to the Guarantor in violation of the preceding sentence, such amount
shall be deemed to have been paid to the Guarantor for the benefit of, and held in trust for, the
Lenders, and shall forthwith be paid to the Lenders to be credited and applied upon the
Indebtedness, whether matured or unmatured. The Guarantor acknowledges that it will receive direct
and indirect benefits from the financing arrangements contemplated by the Credit Agreement and
that the waiver set forth in this Section is knowingly made in contemplation of such benefits.

     SECTION 2.7 Payments Free and Clear of Taxes, etc. The Guarantor hereby agrees
that:

          (a) All payments by the Guarantor hereunder shall be made in accordance with Section 4.06 of
the Credit Agreement free and clear of and without deduction for any present or future income,
excise, stamp or franchise taxes and other taxes, fees, duties, withholdings or other charges of
any nature whatsoever imposed by any taxing authority, but excluding franchise taxes and taxes
imposed on or measured by any Lender’s net income or receipts (such non-excluded items being
called “Taxes”). In the event that any withholding or deduction from any payment to be made by the
Guarantor hereunder is required in respect of any Taxes pursuant to any applicable law, rule or
regulation, then the Guarantor will (i) pay directly to the relevant authority the full amount
required to be so withheld or deducted; (ii) promptly forward to such Lender an official receipt
or other documentation satisfactory to such Lender evidencing such payment to such authority; and
(iii) pay to such Lender such additional amount or

Exhibit G - Page 4

 

 

amounts as is necessary to ensure that the net amount actually received by such Lender will
equal the full amount such Lender would have received had no such withholding or deduction been
required. Moreover, if any Taxes are directly asserted against any Lender with respect to any
payment received by such Lender hereunder, such Lender may pay such Taxes and the Guarantor will
promptly pay such additional amounts (including, if incurred as a result of Guarantor’s or the
Borrower’s action, omission or delay, any penalties, interest or expenses) as is necessary in
order that the net amount received by such Lender after the payment of such Taxes (including any
Taxes on such additional amount) shall equal the amount such Lender would have received had such
Taxes not been asserted.

          (b) If the Guarantor fails to pay any Taxes when due to the appropriate taxing authority or
fails to remit to any Lender the required receipts or other required documentary evidence, the
Guarantor shall indemnify such Lender for any incremental Taxes, interest or penalties that may
become payable by such Lender as a result of any such failure.

          (c) Without prejudice to the survival of any other agreement of the Guarantor hereunder, the
agreements and obligations of the Guarantor contained in this Section 2.7shall survive the payment
in full of the principal of and interest on the Loans.

     SECTION 2.8 Contribution Agreement. Upon full and final payment of the Indebtedness,
Guarantor and all other Subsidiary Guarantors which have made payments upon all or any part of the
Indebtedness shall be entitled to contribution from all of the other Subsidiary Guarantors, to the
end that all such payments upon the Indebtedness shall be shared among all Subsidiary Guarantors
who guaranteed such Indebtedness in proportion to their respective Net Worths (defined below),
provided that the contribution obligations of each of the Subsidiary Guarantors shall be limited
to the maximum amount that it can pay at such time without rendering its contribution obligations
voidable under applicable law relating to fraudulent conveyances or fraudulent transfers. As used
in this subsection, the “Net Worth” of each of the Subsidiary Guarantors means, at any time, the
remainder of (i) the fair value of such Subsidiary Guarantor’s assets (other than such right of
contribution), minus (ii) the fair value of such Subsidiary Guarantor’s liabilities (other than
its liabilities under its guaranty of the Indebtedness).

     SECTION 2.9 Subordination. Guarantor hereby subordinates and makes inferior to the
Indebtedness any and all Intercompany Debt now or at any time hereafter owed by the Borrower or
other Obligor to the Guarantor. Guarantor agrees that after the occurrence of any Default or Event
of Default under the Credit Agreement, it will not permit the Borrower to repay such Intercompany
Debt or any part thereof and it will not accept payment from the Borrower of such Intercompany
Debt or any part thereof without the prior written consent of the Majority Lenders as defined in
the Credit Agreement. If Guarantor receives any such payment without the prior required written
consent, the amount so paid shall be held in trust for the benefit of the Lenders, shall be
segregated from the other funds of such Guarantor, and shall forthwith be paid over to the
Administrative Agent to be held by the Administrative Agent as collateral for, or then or at any
time thereafter applied in whole or in part by the Administrative Agent against, all or any
portions of the Indebtedness, whether matured or unmatured, in such order as the Administrative
Agent shall elect.

ARTICLE III

REPRESENTATIONS, WARRANTIES AND COVENANTS

     SECTION 3.1 Representations, Warranties and Covenants. By execution hereof, Guarantor
covenants and agrees that certain representations, warranties, terms, covenants, and conditions
set forth in the Credit Agreement and other Loan Documents are applicable to Guarantor and shall
be imposed upon Guarantor, and Guarantor reaffirms that each such representation and warranty is
true and correct and

Exhibit G - Page 5

 

 

covenants and agrees to promptly and properly perform, observe, and comply with each such
term, covenant, or condition. Moreover, Guarantor acknowledges and agrees that this Guaranty
Agreement is subject to the offset provisions of the Credit Agreement in favor of the
Administrative Agent and the Lenders.

ARTICLE IV

MISCELLANEOUS PROVISIONS

     SECTION 4.1 Loan Document. This Guaranty Agreement is a Loan Document executed
pursuant to the Credit Agreement and shall (unless otherwise expressly indicated herein) be
construed, administered and applied in accordance with the terms and provisions thereof.

     SECTION 4.2 Releases. At such time as the Loans shall have been paid in full, the
Commitments have been terminated and no Hedging Agreements are outstanding, the Administrative
Agent shall, at the request and expense of the Guarantor following such termination, promptly
execute and deliver to the Guarantor such documents and instruments as the Guarantor shall
reasonably request to evidence termination and release of this Guaranty Agreement.

     SECTION 4.3 Administrative Agent and Lenders; Successors and Assigns.

          (a) The Administrative Agent is Administrative Agent for each Lender under the Credit
Agreement. All rights granted to Administrative Agent under or in connection with this Guaranty
Agreement are for each Lender’s ratable benefit. The Administrative Agent may, without the joinder
of any Lender, exercise any rights in Administrative Agent’s or Lenders’ favor under or in
connection with this Guaranty Agreement. The Administrative Agent’s and each Lender’s rights and
obligations vis-a-vis each other may be subject to one or more separate agreements between those
parties. However, the Guarantor is not required to inquire about any such agreement and is not
subject to any terms of it unless the Guarantor specifically enters into such agreement. Therefore,
neither Guarantor nor its successors or assigns is entitled to any benefits or provisions of any
such separate agreement nor is it entitled to rely upon or raise as a defense any party’s failure
or refusal to comply with the provisions of any such agreement.

          (b) This Guaranty Agreement benefits the Administrative Agent, the Lenders, and their
respective successors and assigns and binds Guarantor and its successors and assigns. Upon
appointment of any successor Administrative Agent under the Credit Agreement, all of the rights of
Administrative Agent under this Guaranty Agreement automatically vests in that new Administrative
Agent as successor Administrative Agent on behalf of Lenders without any further act, deed,
conveyance, or other formality other than that appointment. The rights of the Administrative Agent
and the Lenders under this Guaranty Agreement may be transferred with any assignment of the
obligations hereby guaranteed pursuant to and in accordance with the terms of the Credit Agreement.
The Credit Agreement contains provisions governing assignments of the obligations guaranteed under
this Guaranty Agreement.

     SECTION 4.4 Amendments, etc. No amendment to or waiver of any provision of this
Guaranty Agreement, nor consent to any departure by the Guarantor herefrom, shall in any event be
effective unless the same shall be in writing and signed by or on behalf of the party against whom
it is sought to be enforced and is in conformity with the requirements of Section 12.03 of the
Credit Agreement. Each such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given.

Exhibit G - Page 6

 

 

     SECTION 4.5 Addresses for Notices to the Guarantor. All notices and other
communications hereunder to the Guarantor shall be in writing and mailed or delivered to it,
addressed to it at the address set forth below or at such other address as shall be designated by
the Guarantor in a written notice to the Administrative Agent at the address specified in the
Credit Agreement complying as to delivery with the terms of this Section. All such notices and
other communications shall, when mailed, be effective when deposited in the mails, addressed as
aforesaid. Address for notices:

                                                     

                                                     

                                                     

                                                     

Attn:                     

Facsimile: (___) __-_____

Telephone: (___) __-_____

     SECTION 4.6 No Waiver; Remedies. In addition to, and not in limitation of, Section
2.3 and Section 2.5, no failure on the part of any Lender or any holder of a Note to exercise, and
no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any right hereunder preclude any other or further exercise thereof
or the exercise of any other right. The remedies herein provided are cumulative and not exclusive
of any remedies provided by law.

     SECTION 4.7 Section Captions. Section captions used in this Guaranty Agreement are
for convenience of reference only, and shall not affect the construction of this Guaranty
Agreement.

     SECTION 4.8 Setoff. In addition to, and not in limitation of, any rights of any
Lender or any holder of a Note under applicable law, upon the occurrence of an Event of Default
under or as defined in the Credit Agreement, each Lender and each such holder shall be entitled to
exercise any right of offset or banker’s lien against each and every account and other property or
interest that the Guarantor may now or hereafter have with, or which is now or hereafter in the
possession of, any such Lender, to the extent of the full amount of the Indebtedness.

     SECTION 4.9 Severability. Wherever possible each provision of this Guaranty Agreement
shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Guaranty Agreement shall be prohibited by or invalid under such law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this Guaranty
Agreement.

     SECTION 4.10 Governing Law. THIS GUARANTY AGREEMENT SHALL BE DEEMED TO BE A CONTRACT
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK AND APPLICABLE FEDERAL LAW. THIS
GUARANTY AGREEMENT AND THE OTHER LOAN DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING AMONG THE
PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ANY PRIOR AGREEMENTS,
WRITTEN OR ORAL, WITH RESPECT THERETO.

     SECTION 4.11 Forum Selection and Consent to Jurisdiction. ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS GUARANTY AGREEMENT, OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE LENDERS OR THE
GUARANTOR MAY BE BROUGHT AND MAINTAINED IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN

Exhibit G - Page 7

 

 

DISTRICT OF NEW YORK. THE GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE
NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT
COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH
ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH
LITIGATION. THE GUARANTOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY PERSONAL
SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. THE GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY
HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND
ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

     SECTION 4.12 Waiver of Jury Trial. THE GUARANTOR HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS GUARANTY AGREEMENT, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE LENDERS OR
THE GUARANTOR. THE GUARANTOR ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT
CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE LENDERS
ENTERING INTO THE CREDIT AGREEMENT.

     SECTION 4.13 Entire Agreement. THIS GUARANTY AGREEMENT AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

Remainder of Page Intentionally Blank. Signature Page to Follow.

Exhibit G - Page 8

 

 

     IN WITNESS WHEREOF, the Guarantor has caused this Guaranty Agreement to be duly
executed and delivered by an officer duly authorized as of the date first written above.

	 	 	 	 	 	 	 
	 	 	GUARANTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	                                           ,
     a      
           
                                	 	 
	 	 	[limited partnership/limited liability company]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

[SIGNATURES CONTINUED ON NEXT PAGE]

Exhibit G - Page 9

 

 

     This Guaranty Agreement is accepted by the Administrative Agent, for and on behalf of
the Lenders, as of the date first written above.

	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION,

in its capacity as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	          Jay Buckman 

          Vice President	 	 

Exhibit G - Page 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]