$250,000,000
ATLAS PIPELINE PARTNERS, L.P.
(a Delaware limited partnership)
and
ATLAS PIPELINE FINANCE CORP.
(a Delaware corporation)
8 1/8% SENIOR NOTES DUE 2015
PURCHASE AGREEMENT
December 15,
2005
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December 15, 2005
Wachovia
Capital Markets, LLC
Banc of America Securities LLC
c/o Wachovia Capital Markets, LLC
One Wachovia Center
301 South College Street
Charlotte, North Carolina 28288
Ladies and
Gentlemen:
ATLAS
PIPELINE PARTNERS, L.P., a Delaware limited partnership (the
“ Partnership ”), and ATLAS PIPELINE PARTNERS
FINANCE CORP., a Delaware corporation (the “ Finance
Co ” and, together with the Partnership, the “
Issuers ”), propose to issue and sell to the several
purchasers named in Schedule I hereto (the “ Initial
Purchasers ”), for whom Wachovia Capital Markets, LLC and
Banc of America Securities LLC is acting as Representatives (in
such capacity, the “ Representatives ”),
$250,000,000 aggregate principal amount of its 8⅛% Senior
Notes due 2015 (the “ Notes ”), which will be
unconditionally guaranteed on a senior basis as to principal,
premium, if any, and interest (the “ Guarantees
”) by the subsidiaries of the Partnership named in Schedule
II hereto (each individually, a “ Guarantor ”
and collectively, the “ Guarantors
”).
Atlas
Pipeline Partners, GP, LLC, a Delaware limited liability company
(the “ General Partner ”), serves as the general
partner of the Partnership. The Partnership is the sole limited
partner of Atlas Pipeline Operating Partnership, L.P., a Delaware
limited partnership (the “ Operating Partnership
”), and the General Partner is the general partner of the
Operating Partnership. Each of Atlas Pipeline Ohio, LLC, a
Pennsylvania limited liability company (“ Ohio LLC
”), Atlas Pipeline Pennsylvania, LLC, a Pennsylvania limited
liability company (“ Pennsylvania LLC ”), Atlas
Pipeline New York, LLC, a Pennsylvania limited liability company
(“ New York LLC ”) and Atlas Pipeline
Mid-Continent, LLC, a Delaware limited liability company (“
APMC ”), is a subsidiary of the Operating Partnership.
ELK City Oklahoma GP, LLC, a Delaware limited liability company
(“ ELK City GP ”) is a subsidiary of APMC. APMC
is the sole limited partner of Elk City Oklahoma Pipeline, L.P., a
Texas limited partnership (“ Elk City ”), and
ELK City GP is the general partner of Elk City. APMC owns a 100%
ownership interest in Atlas Arkansas Pipeline LLC, an Oklahoma
limited liability company (“ Atlas Arkansas ”),
which owns a 75% interest in NOARK Pipeline System, Limited
Partnership, an Arkansas limited partnership (“ NOARK
”). For purposes of this Agreement, each of Ohio LLC,
Pennsylvania LLC, New York LLC and APMC is sometimes referred to
herein individually as a “Subsidiary” and collectively,
as the “Subsidiaries.”
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The
Partnership, the General Partner, the Finance Co, the Operating
Partnership and the Subsidiaries are sometimes referred to herein
individually as a “ Partnership Entity ” and
collectively as the “ Partnership Entities .”
The Partnership Entities excluding the General Partner are
sometimes referred to herein collectively as the “
Partnership Group .” The Partnership, the General
Partner and the Operating Partnership are sometimes referred to
herein collectively as the “ Atlas Parties
.”
The
Notes will be issued pursuant to an Indenture (the “
Indenture ”) dated as of the Closing Date (as defined
in Section 2) among the Issuers, the Guarantors and Wachovia Bank,
National Association, as Trustee (the “ Trustee
”). This Agreement, the Registration Rights Agreement, to be
dated the Closing Date, between the Initial Purchasers and the
Issuers (the “ Registration Rights Agreement ”)
and the Indenture are hereinafter collectively referred to as the
“ Transaction Documents ” and the execution and
delivery of the Transaction Documents and the transactions
contemplated herein and therein are hereinafter referred to as the
“ Transactions ”.
The
Notes (and the related Guarantees) will be offered and sold through
the Initial Purchasers without being registered under the
Securities Act of 1933, as amended (the “ Securities
Act ”), to qualified institutional buyers in compliance
with the exemption from registration provided by Rule 144A under
the Securities Act and in offshore transactions in reliance on
Regulation S under the Securities Act (“ Regulation S
”). The Initial Purchasers have advised the Issuers that they
will offer and sell the Notes purchased by them hereunder in
accordance with Section 3 hereof as soon as the
Representatives deem advisable.
In
connection with the sale of the Notes, the Issuers have prepared a
preliminary offering memorandum, dated December 5, 2005 (the
“ Preliminary Memorandum ”), the Time of Sale
Memorandum (as defined below) and a final offering memorandum,
dated the date hereof (the “ Final Memorandum ”
and, with the Preliminary Memorandum and the Time of Sale
Memorandum, each a “ Memorandum ”). Each
Memorandum sets forth certain information concerning the Issuers,
the Notes, the Transaction Documents and the Transactions. The
Issuers hereby confirm that they have authorized the use of the
Preliminary Memorandum and the Final Memorandum, and any amendment
or supplement thereto, in connection with the offer and sale of the
Notes by the Initial Purchasers. As used herein, the term
“Memorandum” shall include, except where specifically
noted, in each case the documents incorporated by reference
therein.
Prior
to the time when sales of the Notes were first made (the “
Time of Sale ”), the Issuers have prepared a pricing
supplement (the “ Pricing Supplement ”) which
details the pricing information for the Notes and all other changes
to the Preliminary Memorandum. The Pricing Supplement together with
the Preliminary Memorandum is referred to herein as the “
Time of Sale Memorandum. ”
Promptly
after the Time of Sale and in any event no later than the second
Business Day following the Time of Sale, the Issuers will prepare
and deliver to each Initial Purchaser a Final Memorandum, which
will consist of the Preliminary Offering Memorandum with such
changes therein as are required to reflect the information
contained in the Pricing Supplement.
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1.
Representations and Warranties of the Issuers and the
Guarantors . The Issuers and the Guarantors jointly and
severally represent and warrant to, and agree with, each of the
Initial Purchasers that:
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(a) The
Preliminary Memorandum does not contain; the Time of Sale
Memorandum at the Time of Sale and at the Closing Date does not and
will not contain; and the Final Memorandum, and any amendment or
supplement thereto does not and will not contain any untrue
statement of a material fact or omit to state any material fact
necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; provided,
however, that the representations or warranties set forth in this
paragraph shall not apply to statements in or omissions from any
Memorandum made in reliance upon and in conformity with information
furnished in writing to the Issuers by the Initial Purchasers
expressly for use therein, as specified in Section 11. The
statistical and industry data included in each Memorandum are based
on or derived from sources that the Issuers believe to be reliable
and accurate.
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(b) Each
of the Partnership and the Operating Partnership has been duly
formed and is validly existing in good standing as a limited
partnership under the Delaware Revised Uniform Limited Partnership
Act, as amended (the “ Delaware LP Act ”), with
full partnership power and authority to own or lease, as the case
may be, and to operate its properties and to conduct its business,
in each case in all material respects as described in the Time of
Sale Memorandum and in the Final Memorandum, and is duly registered
or qualified to do business as a foreign limited partnership and is
in good standing under the laws of each jurisdiction which requires
such qualification, except where the failure to so register or
qualify would not have a Material Adverse Effect. “
Material Adverse Effect ” shall mean a material
adverse change in or effect on (i) the business, operations,
properties, assets, liabilities, stockholders’ equity,
earnings, condition (financial or otherwise), results of operations
or prospects of the Partnership and its subsidiaries, considered as
one enterprise, whether or not in the ordinary course of business,
or (ii) the ability of the Partnership and each Guarantor to
perform its obligations under the Notes or the Transaction
Documents.
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(c) The
Finance Co has been duly organized and is validly existing as a
corporation in good standing under the laws of the State of
Delaware.
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(d) The
General Partner has been duly formed and is validly existing in
good standing as a limited liability company under the Delaware
Limited Liability Company Act (the “ Delaware LLC Act
”), with full limited liability company power and authority
to own or lease, as the case may be, and to operate its properties
and to conduct its business and to act as general partner of the
Partnership and the Operating Partnership, and is duly registered
or qualified to do business as a foreign limited liability company
and is in good standing under the laws of each jurisdiction which
requires such qualification, except where the failure to so
register or qualify would not have a Material Adverse
Effect.
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(e) The
General Partner is the sole general partner of the Partnership with
a 1.0101% general partner interest in the Partnership; such general
partner interest has been duly and validly authorized and issued in
accordance with the agreement of limited partnership of the
Partnership (the “ Partnership Agreement ”); and
the General Partner owns such general partner interest free and
clear of all liens, encumbrances, security interests, equities,
charges or claims other than those created by or arising under the
Delaware LP Act, the Partnership Agreement or the Credit Agreement
among Atlas America, Inc., Wachovia Bank, National Association, et
al. dated March 12, 2005 (as amended the “AAI Credit
Facility”).
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(f) Each
of the Subsidiaries has been duly organized and validly existing
and in good standing as a limited liability company under the laws
of the jurisdiction of its organization, with full power and
authority to own or lease, as the case may be, and to operate its
respective properties and to conduct its business and is duly
registered or qualified to do business as a foreign limited
liability company and is in good standing under the laws of each
jurisdiction which requires such qualification, except where the
failure to so register or qualify would not have a Material Adverse
Effect.
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(g) The
General Partner is the sole general partner of the Operating
Partnership, and has a 1.0101% partnership interest in the
Operating Partnership; such interest has been duly authorized and
validly issued in accordance with the agreement of limited
partnership of the Operating Partnership (the “ Operating
Partnership Agreement ”); and the General Partner owns
such general partner interest free and clear of all liens,
encumbrances, security interests, equities, charges or claims,
other than liens, encumbrances and security interests arising under
the AAI Credit Facility.
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(h) The
Partnership is the sole limited partner of the Operating
Partnership with a 98.9899% partnership interest in the Operating
Partnership; such interest has been duly authorized and validly
issued in accordance with the Operating Partnership Agreement and
is fully paid (to the extent required under the Operating
Partnership Agreement) and nonassessable (except as such
nonassessability may be affected by Section 17-607 of the Delaware
LP Act); and the Partnership owns such limited partner interest
free and clear of all liens, encumbrances, security interests,
equities, charges or claims other than those arising under the New
Credit Facility (as defined below).
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(i) The
Operating Partnership owns 100% of the member interests in APMC;
such member interests have been duly authorized and validly issued
in accordance with the limited liability company agreement of APMC
(the “ APMC Agreement ”) and are fully paid (to
the extent required under the APMC Agreement) and nonassessable
(except as such nonassessability may be affected by Section 18-607
of the Delaware LLC Act); and the Partnership owns such member
interests free and clear of any liens, encumbrances, security
interests, equities, charges or claims, other than those arising
under the Revolving Credit and Term Loan Agreement among the
Partnership, Wachovia Bank, National Association, et al. dated
April 14, 2005 (as subsequently amended, the “ New Credit
Facility ”).
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(j) APMC
owns 100% of the member interests in ELK City GP; such member
interests have been duly authorized and validly issued in
accordance with the limited liability company agreement of ELK City
GP (the “ ELK City GP Agreement ”) and are fully
paid (to the extent required under the ELK City GP Agreement) and
nonassessable (except as such nonassessability may be affected by
Section 18-607 of the Delaware LLC Act); and APMC owns such member
interests free and clear of any liens, encumbrances, security
interests, equities, charges or claims, other than those arising
under the New Credit Facility.
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(k) APMC
owns 100% of the member interests in Atlas Arkansas; such member
interests have been duly authorized and validly issued in
accordance with the limited liability company agreement of Atlas
Arkansas (the “ Atlas Arkansas Agreement ”) and
are fully paid (to the extent required under the Atlas Arkansas
Agreement) and nonassessable (except as such nonassessability may
be affected by statutes of Arkansas specifically governing limited
liability companies); and APMC owns such member interests free and
clear of any liens, encumbrances, security interests, equities,
charges or claims, other than those arising under the New Credit
Facility.
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(l) Atlas
Arkansas owns a 74% general partner interest and a 1% limited
partner interest in NOARK such interest has been duly authorized
and validly issued in accordance with the Amended and Restated
Agreement of Limited Partnership of NOARK Pipeline System, Limited
Partnership, dated as of January 12, 1998, as amended (the “
NOARK Partnership Agreement ”) and such interests are
fully paid (to the extent required under the NOARK Partnership
Agreement) and nonassessable (except as such nonassessability may
be affected by statutes of Arkansas specifically governing limited
liability companies); and Atlas Arkansas owns such limited partner
interest and such general partner interest free and clear of all
liens, encumbrances, security interests, equities, charges or
claims other than those arising under the New Credit
Facility.
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(m) The
Operating Partnership owns 100% of the member interests of each of
Ohio LLC, Pennsylvania LLC, New York LLC and APMC; all such member
interests have been duly authorized, and validly issued in
accordance with their respective limited liability company
agreements and are fully paid (to the extent required by such
limited liability company agreements) and nonassessable (except as
such nonassessability may be affected by Section 8931 of the
Pennsylvania Limited Liability Company Law of 1994, as amended (the
“ Pennsylvania LLC Law ”)) or Section 18-607 of
the Delaware LLC Act; and the Operating Partnership owns all of
such member interests free and clear of any liens, encumbrances,
security interests, equities, charges or claims, other than those
arising under the New Credit Facility.
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(n) Each
Issuer and each Guarantor has full power (corporate and other) to
own or lease its properties and conduct its business as described
in each Memorandum; and the Issuers have full power (corporate and
other) to enter into the Transaction Documents and to carry out all
the terms and provisions hereof and thereof to be carried out by
them.
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(o) The
authorized, issued and outstanding equity interests or shares of
capital stock, as the case may be, of each Issuer are as set forth
in the Time of Sale Memorandum and the Final Memorandum. All of the
issued equity interests of the Partnership and all of the issued
shares of capital stock of the Finance Co have been duly authorized
and validly issued and are fully paid and nonassessable; and none
of the outstanding equity interests of the Partnership and none of
the outstanding shares of capital stock of the Finance Co were
issued in violation of the preemptive or other similar rights of
any security holder of the Partnership or the Finance Co,
respectively.
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(p) No
Subsidiary is prohibited, directly or indirectly, from paying any
dividends to the Partnership, from making any other distribution on
such subsidiary’s capital stock or equity interests, as the
case may be, from repaying to the Partnership any loans or advances
to such subsidiary from the Partnership or from transferring any of
such subsidiary’s property or assets to the Partnership or
any other subsidiary of the Partnership, except as provided by
applicable laws or regulations, by the Indenture, the New Credit
Facility or as disclosed in the Time of Sale Memorandum and in the
Final Memorandum.
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(q) Except
for rights to acquire securities under the Partnership’s
LTIP, the underwriters’ over-allotment option in connection
with the Partnership’s November 2005 equity offering or as
otherwise disclosed in the Time of Sale Memorandum and in the Final
Memorandum, there are no outstanding (i) securities or obligations
of the Partnership convertible into or exchangeable for any equity
interests of the Partnership, (ii) warrants, rights or options to
subscribe for or purchase from the Partnership any such equity
interests or any such convertible or exchangeable securities or
obligations or (iii) obligations of the Partnership to issue any
such equity interests, any such convertible or exchangeable
securities or obligations, or any such warrants, rights or
options.
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(r) Grant
Thornton LLP, who has certified the financial statements included
in the Time of Sale Memorandum and in the Final Memorandum and
delivered its report with respect to the audited financial
statements of the Partnership and its consolidated subsidiaries,
and the audited financial statements of Elk City in the Time
of Sale Memorandum and in the Final Memorandum, is an independent
public accountant with respect to the Partnership, and during the
periods covered by the financial statements on which they reported
was an independent public accountant with respect to Elk City,
within the meaning of the Securities Act and the applicable rules
and regulations thereunder.
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(s) Ernst
& Young LLP, who has certified the financial statements
relating to Enogex Arkansas Pipeline Corporation included in the
Time of Sale Memorandum and in the Final Memorandum and delivered
its report with respect to the audited financial statements of
Enogex Arkansas Pipeline Corporation and its consolidated
subsidiaries included or incorporated by referencein the Time of
Sale Memorandum and in the Final Memorandum, was during the periods
covered by the financial statements on which they reported an
independent public accountant with respect to Enogex Arkansas
Pipeline Corporation within the meaning of the Securities Act and
the applicable rules and regulations thereunder.
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(t) The
financial statements (including the notes thereto) of the
Partnership and its consolidated subsidiaries in the Time of Sale
Memorandum and in the Final Memorandum fairly present the financial
position, results of operations, cash flows and changes in equity
interests of the Partnership and its consolidated subsidiaries as
of the dates and for the periods specified therein; since the date
of the latest of such financial statements, there has been no
change nor any development which has had or could reasonably be
expected to have a Material Adverse Effect; such financial
statements have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods
involved (except as otherwise expressly disclosed in the notes
thereto) and comply as to form with the applicable accounting
requirements of Regulation S-X under the Securities Act; the
information set forth under the captions “Offering Memorandum
Summary – Summary Historical and Pro Forma Financial and
Operating Data”, “Capitalization”,
“Selected Historical Financial and Operating Data”,
“Unaudited Pro Forma Financial Data” and
“Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the Time of Sale
Memorandum and in the Final Memorandum has been fairly extracted
from the financial statements of the Partnership and its
consolidated subsidiaries, fairly presents the information included
therein and has been compiled on a basis consistent with that of
the audited financial statements included in the Time of Sale
Memorandum and in the Final Memorandum; and the ratios of earnings
to fixed charges set forth in the Time of Sale Memorandum and in
the Final Memorandum under the caption “Selected Historical
Financial and Operating Data” have been calculated in
compliance with Item 503(d) of Regulation S-K under the Securities
Act. The assumptions underlying the pro forma financial information
included in the Time of Sale Memorandum and in the Final Memorandum
include all assumptions required to give effect to the Transactions
and events described in the notes thereto, are reasonable and are
set forth in the Time of Sale Memorandum and in the Final
Memorandum and the pro forma adjustments give proper effect to
those assumptions and reflect the proper application of those
adjustments to the applicable historical financial statements
included in the Time of Sale Memorandum and in the Final
Memorandum.
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(u) The
financial statements (including the notes thereto) of Elk City in
the Time of Sale Memorandum and in the Final Memorandum fairly
present the financial position, results of operations, cash flows
and changes in stockholders’ equity of Elk City as of the
dates and for the periods specified therein; such financial
statements have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods
involved (except as otherwise expressly disclosed in the notes
thereto) and comply as to form with the applicable accounting
requirements of Regulation S-X under the Securities Act.
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(v) The
financial statements (including the notes thereto) of Atlas
Arkansas in the Time of Sale Memorandum and in the Final Memorandum
fairly present the financial position, results of operations, cash
flows and changes in stockholders’ equity of Atlas Arkansas
as of the dates and for the periods specified therein; such
financial statements have been prepared in accordance with
generally accepted accounting principles consistently applied
throughout the periods involved (except as otherwise expressly
disclosed in the notes thereto) and comply as to form with the
applicable accounting requirements of Regulation S-X under the
Securities Act.
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(w) Subsequent
to the respective dates as of which information is given in the
Time of Sale Memorandum and in the Final Memorandum, (i) none
of the Partnership and its subsidiaries have incurred any material
liability or obligation, direct or contingent, or entered into any
material transaction in each case not in the ordinary course of
business; (ii) the Partnership has not purchased any of its
outstanding equity interests, except for regular quarterly
distributions to its unitholders and general partner in amounts per
unit that are consistent with past practice, has not declared, paid
or otherwise made any dividend or distribution of any kind; and
(iii) there has not been any material change in the capital
stock, short-term debt or long-term debt of the Partnership and its
subsidiaries, except as disclosed in the Time of Sale Memorandum
and in the Final Memorandum.
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(x) The
Partnership and each of its subsidiaries maintains a system of
internal accounting controls sufficient to provide reasonable
assurances that (i) transactions are executed in accordance with
management’s general or specific authorizations; (ii)
transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability; (iii)
access to assets is permitted only in accordance with
management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with
respect to any differences.
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(y) This
Agreement has been duly authorized, executed and delivered by each
Issuer and each Guarantor.
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(z) The
Indenture and the Registration Rights Agreement have been duly
authorized by each Issuer and each Guarantor and, on the Closing
Date, will have been duly executed and delivered by each Issuer and
each Guarantor, and will constitute the legal, valid and binding
obligations of each Issuer and each Guarantor, enforceable against
each Issuer and each Guarantor in accordance with their respective
terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting enforcement of creditors’ rights generally and
except as enforcement thereof is subject to general principles of
equity; and the Indenture and the Registration Rights Agreement
will conform to the description thereof in the Time of Sale
Memorandum and in the Final Memorandum and will be substantially in
the form previously delivered to you.
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(aa) The
Partnership Agreement has been duly authorized, executed and
delivered and is a valid and legally binding agreement of the
General Partner, enforceable against the General Partner in
accordance with its terms.
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(bb) The
Operating Partnership Agreement has been duly authorized, executed
and delivered by the General Partner and the Partnership, and is a
valid and legally binding agreement of the General Partner and the
Partnership, enforceable against the General Partner and the
Partnership in accordance with its terms.
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(cc) The
Atlas Arkansas Agreement is a valid and legally binding agreement
of APMC, enforceable against APMC in accordance with its
terms.
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(dd) Each
of the limited liability company agreements of Ohio LLC,
Pennsylvania LLC, New York LLC and APMC has been duly authorized,
executed and delivered by the Operating Partnership and is a valid
and legally binding agreement of the Operating Partnership,
enforceable against the Operating Partnership in accordance with
its terms.
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(ee) The
ELK City GP Agreement has been duly authorized, executed and
delivered by APMC, and is a valid and legally binding agreement of
APMC, enforceable against APMC in accordance with its
terms.
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(ff) The
Indenture conforms to the requirements of the Trust Indenture Act
of 1939, as amended (the “ Trust Indenture Act
”), and to the rules and regulations of the Commission
applicable to an indenture that is qualified thereunder.
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Provided that, with respect to
each agreement described in clauses (x) through
(bb) above, the enforceability thereof may be limited by
bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws relating to or affecting
creditors’ rights generally and by general principles of
equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).
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(gg) The
Notes have been duly authorized and, on the Closing Date, when
executed and authenticated in the manner provided for in the
Indenture and delivered to and paid for by the Initial Purchasers
as provided in this Agreement, will constitute the legal, valid and
binding obligations of the Issuers, enforceable against the Issuers
in accordance with their terms, except as the enforcement thereof
may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting enforcement of
creditors’ rights generally and except as enforcement thereof
is subject to general principles of equity, and will be entitled to
the benefits of the Indenture and the Registration Rights
Agreement; the Guarantees have been duly authorized and, on the
Closing Date, upon the due issuance and delivery of the related
Notes and the due endorsement of the Guarantees thereon, will have
been duly executed, endorsed and delivered and will constitute
valid and legally binding obligations of each of the Guarantors,
and will be entitled to the benefits of the Indenture; the Exchange
Notes (as defined in the Registration Rights Agreement) have been
duly authorized and, when executed and authenticated in the manner
provided for in the Registration Rights Agreement and the
Indenture, will constitute the legal, valid and binding obligations
of the Issuers, enforceable against the Issuers in accordance with
their terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting enforcement of creditors’ rights generally and
except as enforcement thereof is subject to general principles of
equity, and will be entitled to the benefits of the Indenture and
the Registration Rights Agreement; and the Notes and the Exchange
Notes will conform to the descriptions thereof in the Time of Sale
Memorandum and in the Final Memorandum.
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(hh) The
execution, delivery and performance by each Issuer and each
Guarantor of this Agreement and the other Transaction Documents,
the issuance and sale of the Notes and the compliance by each
Issuer and each Guarantor with all of the provisions of the Notes,
the Indenture, the Registration Rights Agreement and this Agreement
and the consummation of the transactions contemplated hereby and
thereby will not (i) conflict with, result in a breach or violation
of, or constitute a default under, any indenture, mortgage, deed of
trust or loan agreement, stockholders’ agreement or any other
agreement or instrument to which the Issuers or any of their
subsidiaries or any other Guarantor is a party or by which the
Issuers or any of their subsidiaries or any other Guarantor is
bound or any of their respective properties are subject, or with
the operating agreement, certificate of incorporation or by-laws of
the Issuers or any other Guarantor, or any statute, rule or
regulation or any judgment, order or decree of any governmental
authority or court or any arbitrator applicable to the Issuers or
any other Guarantor, or (ii) require the consent, approval,
authorization, order, registration or filing or qualification with,
any governmental authority or court, or body or arbitrator having
jurisdiction over the Issuers or any other Guarantor, except such
as may be required by the securities or Blue Sky laws of the
various states in connection with the offer or sale of the Notes
and by Federal and state securities laws with respect to the
obligations of the Issuers and the Guarantors under the
Registration Rights Agreement.
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(ii) No
legal or governmental proceedings or investigations are pending or
threatened to which the Issuers or any other Guarantor is a party
or to which any of the properties of the Issuers or any of their
subsidiaries or any other Guarantor is subject, other than
proceedings accurately described in the Preliminary Memorandum, the
Time of Sale Memorandum and the Final Memorandum and such
proceedings or investigations that would not, singly or in the
aggregate, result in a Material Adverse Effect.
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(jj) There
are no relationships, direct or indirect, between or among the
Issuers or any of their subsidiaries or any other Guarantor, on the
one hand, and the respective directors, officers, stockholders,
equity interest holders, customers or suppliers of the Issuers or
any of their subsidiaries or any other Guarantor, on the other
hand, that would be required by the Securities Act to be disclosed
in a prospectus were the Notes being issued and sold in a public
offering registered on Form S-1 under the Securities Act that are
not so disclosed in the Time of Sale Memorandum and in the Final
Memorandum; and there are no contracts or other documents that
would be required by the Securities Act to be disclosed in a
prospectus were the Notes being issued and sold in a public
offering registered on Form S-1 under the Securities Act that are
not so disclosed in the Time of Sale Memorandum and in the Final
Memorandum.
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(kk) Each
of the Issuers and each Guarantor is not now nor after giving
effect to the issuance of the Notes and the execution, delivery and
performance of the Transaction Documents and the consummation of
the transactions contemplated thereby or described in the
Preliminary Memorandum, the Time of Sale Memorandum or the Final
Memorandum, will be (i) insolvent, (ii) left with unreasonably
small capital with which to engage in its anticipated business or
(iii) incurring debts or other obligations beyond its ability to
pay such debts or obligations as they become due.
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(ll) The
Issuers and their Affiliates (as defined in Rule 501(b) of
Regulation D under the Securities Act (“ Regulation D
”)) have not distributed and, prior to the later of (i) the
Closing Date and (ii) the completion of the distribution of
the Notes, will not distribute any offering material in connection
with the offering and sale of the Notes other than the Preliminary
Memorandum, the Time of Sale Memorandum, the Final Memorandum or
any amendment or supplement thereto.
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(mm) The
Issuers and their subsidiaries have not sustained, since the date
of the latest audited financial statements included in the Time of
Sale Memorandum or in the Final Memorandum (exclusive of any
amendment or supplement thereto), any loss or interference with its
business or properties from fire, explosion, flood, accident or
other calamity, whether or not covered by insurance, or from any
labor dispute or court or governmental action, order or decree
(whether domestic or foreign) otherwise than as set forth in the
Time of Sale Memorandum and in the Final Memorandum (exclusive of
any amendment or supplement thereto); and, since such date, there
has not occurred any change or development having a Material
Adverse Effect.
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(nn) The
statements set forth in the Time of Sale Memorandum and in the
Final Memorandum under the caption “Description of
Notes”, insofar as they purport to constitute a summary of
the terms of the Notes, and under the captions
“Management”, “Executive Compensation”,
“Management’s Discussion and Analysis of Financial
Condition and Results of Operations”, “Business”,
“Conflicts of Interest”, “Description of Other
Indebtedness”, “Material United States Federal Income
Tax Consequences”, “Exchange Offer; Registration
Rights” and “Notice to Investors”, insofar as
they purport to summarize the provisions of the laws and documents
referred to therein, fairly and accurately summarize the subject
matter thereof.
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(oo) The
Issuers and their subsidiaries and each other Guarantor have good
and marketable title in fee simple to all items of real property
and good and marketable title to all personal property owned by
each of them except for (i) taxes not yet payable, (ii) as
described in the Memorandum and (iii) such liens, charges,
encumbrances and restrictions as do not detract from the value
thereof and do not materially interfere with the use thereof taken
as a whole as such properties and assets have been used in the past
and are proposed to be used in the future, free and clear of any
pledge, lien, encumbrance, security interest or other defect or
claim of any third party. Any property leased by the Issuers and
their subsidiaries and each other Guarantor is held under valid,
subsisting and enforceable leases, and there is no default under
any such lease or any other event that with notice or lapse of time
or both would constitute a default thereunder with such exceptions
(i) as are not material and do not interfere with the use made and
proposed to be made of such assets as they have been used as
described in the Memorandum or (ii) that would not have a Material
Adverse Effect.
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(pp) Each
of the Partnership Entities has such consents, easements,
rights-of-way, permits or licenses from each person (collectively,
“ rights-of-way ”) as are necessary to conduct
its business in the manner described, and subject to the
limitations contained, in the Time of Sale Memorandum and in the
Final Memorandum, with such exceptions (i) as are not material and
do not interfere with the use made and proposed to be made of such
assets as they have been used as described in the Memorandum or
(ii) that would not have a Material Adverse Effect.
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(qq) No
“prohibited transaction” (as defined in Section 406 of
the Employee Retirement Income Security Act of 1974, as amended,
including the regulations and published interpretations thereunder
(“ ERISA ”), or Section 4975 of the Internal
Revenue Code of 1986, as amended from time to time (the “
Code ”)) or “accumulated funding
deficiency” (as defined in Section 302 of ERISA) or any of
the events set forth in Section 4043(c) of ERISA (other than events
with respect to which the 30-day notice requirement under Section
4043 of ERISA has been waived) has occurred, exists or is
reasonably expected to occur with respect to any employee benefit
plan (as defined in Section 3(3) of ERISA) which the Issuers or any
of their subsidiaries or any other Guarantor maintains, contributes
to or has any obligation to contribute to, or with respect to which
the Issuers or any of their subsidiaries or any other Guarantor has
any liability, direct or indirect, contingent or otherwise (a
“ Plan ”); each Plan is in compliance in all
material respects with applicable law, including ERISA and the
Code; none of the Issuers or any of their subsidiaries or any other
Guarantor has incurred or expects to incur liability under Title IV
of ERISA with respect to the termination of, or withdrawal from,
any Plan; and each Plan that is intended to be qualified under
Section 401(a) of the Code is so qualified in all material respects
and nothing has occurred, whether by action or failure to act,
which could reasonably be expected to cause the loss of such
qualification.
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(rr) Except
as disclosed in each Memorandum, no labor dispute with the
employees of the Issuers or any of their subsidiaries or any other
Guarantor exists, is imminent or is threatened, and the senior
officers of the Issuers and their subsidiaries and each other
Guarantor are not aware of any existing, imminent or threatened
labor disturbance by the employees of any of their respective
principal suppliers, manufacturers, customers or contractors,
which, in either case, could reasonably be expected to result in a
Material Adverse Effect.
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(ss) No
proceedings for the merger, consolidation, liquidation or
dissolution of the Issuers or any Guarantor or the sale of all or a
material part of the assets of the Issuers and their subsidiaries
or any Guarantor or any material acquisition by the Issuers or any
Guarantor are pending that would be required by the Securities Act
to be disclosed in a prospectus included in a Registration
Statement on Form S-1 under the Securities Act.
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(tt) The
Issuers and each of their subsidiaries and each other Guarantorowns
or otherwise possesses adequate rights to use all material patents,
trademarks, service marks, trade names and copyrights, all
applications and registrations for each of the foregoing, and all
other material proprietary rights and confidential information
necessary to conduct their respective businesses as currently
conducted; none of the Issuers or any of their subsidiaries or any
other Guarantor have received any notice, or is otherwise aware, of
any infringement of or conflict with the rights of any third party
with respect to any of the foregoing.
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(uu) Except
as disclosed in the Final Memorandum, none of the Partnership
Entities is subject to rate or terms of service regulation under
federal or state law.
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(vv) The
Issuers and each of their subsidiaries and each other Guarantor is
insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts and with such deductibles
as are customary in the business in which it is engaged; and none
of the Issuers or any of their subsidiaries or any other
Guarantorhas any reason to believe that it will not be able to
renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may
be necessary to continue their respective businesses at a cost that
would not have a Material Adverse Effect.
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(ww) The
Issuers and each of their subsidiaries and each other Guarantor has
complied with all laws, ordinances, regulations and orders
applicable to the Issuers and their subsidiaries and each other
Guarantor, and their respective businesses, and none of the Issuers
or any of their subsidiaries or any other Guarantor has received
any notice to the contrary; and each of the Issuers and their
subsidiaries and each other Guarantor possesses all certificates,
authorizations, permits, licenses, approvals, orders and franchises
(collectively, “ Licenses ”) necessary to
conduct their respective businesses in the manner and to the full
extent now operated or proposed to be operated as described in the
Time of Sale Memorandum and in the Final Memorandum, in each case
issued by the appropriate federal, state, local or foreign
governmental or regulatory authorities (collectively, the “
Agencies ”), except where the failure to so comply or
to possess such Licenses could not have a Material Adverse Effect.
The Licenses are in full force and effect and no proceeding has
been instituted or, to the Issuers’ knowledge, is threatened
or contemplated which in any manner affects or calls into question
the validity or effectiveness thereof. The Licenses contain no
restrictions, except for restrictions applicable to the natural gas
gathering and processing industry generally, that are materially
burdensome to the Issuers.
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(xx) There
is and has been no failure on the part of either Issuer or any of
either Issuer’s directors or officers, in their capacities as
such, to comply with any provision of the Sarbanes Oxley Act of
2002 and the rules and regulations promulgated in connection
therewith (the “ Sarbanes Oxley Act ”) to the
extent applicable, including Section 402 related to loans and
Sections 302 and 906 related to certifications.
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(i) The
Issuers and each of their subsidiaries and each other Guarantor is
and has been in compliance with all applicable Environmental Laws
(as defined below);
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(ii) The
Partnership and each of its subsidiaries and each other Guarantor
has obtained and is in compliance with the conditions of all
permits, authorizations, licenses, approvals and variances
necessary under any Environmental Law for the continued conduct in
the manner now conducted of their respective businesses (“
Environmental Permits ”);
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(iii) There
are no past or present conditions or circumstances, including but
not limited to pending changes in any Environmental Law or
Environmental Permits, that are likely to interfere with the
conduct of the business of the Partnership and its subsidiaries and
each other Guarantor in the manner now conducted or which would
interfere with compliance with any Environmental Law or
Environmental Permits; and
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(iv) There
are no past or present conditions, occurrences, or circumstances
at, or arising out of, their businesses, assets and properties of
the Partnership and each of its subsidiaries and each other
Guarantor or any business, assets or properties formerly leased,
operated or owned by the Partnership or any of its subsidiaries or
any other Guarantor, including but not limited to on-site or
off-site disposal or release of any Hazardous Material (as defined
below), which could reasonably be expected to give rise to: (i)
liabilities or obligations under any Environmental Law; (ii) claims
arising under any Environmental Law, including, without limitation,
claims for personal injury, property damage, or damage to natural
resources; (iii) violations of, or failure to comply by the
Partnership or its subsidiaries or any other Guarantor with, any
Environmental Law; or (iv) fines or penalties arising under any
Environmental Law;
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except in each
case for any noncompliance or conditions or circumstances that,
singly or in the aggregate, would not result in a Material Adverse
Effect.
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(v) There
is no civil, criminal or administrative action, suit, demand,
claim, hearing, notice of violation, investigation, proceeding,
notice or demand letter or request for information pending or, to
the knowledge of either Issuer or any of the Subsidiaries,
threatened against either Issuer or any of the Subsidiaries under
any Environmental Law;
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(vi) No
lien, charge, encumbrance or restriction has been recorded under
any Environmental Law with respect to any assets, facility or
property owned, operated or leased by either Issuer or any of the
Subsidiaries;
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(vii) None
of the Issuers or the Subsidiaries has received notice that it has
been identified as a potentially responsible party under the
Comprehensive Environmental Response, Compensation and Liability
Act of 1980, as amended (“ CERCLA ”), or any
comparable state law;
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(viii) Neither
the Issuers nor any of the Subsidiaries is subject to or party to
any order, judgment, decree, contract or agreement which obligates
it to conduct or finance any such action nor has any of them
assumed by contract or agreement any obligation or liability under
Environmental Law;
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For purposes of this
Agreement, “ Environmental Law ” means the
common law and all applicable federal, state and local laws or
regulations, codes, ordinances, orders, decrees, judgments or
injunctions issued, promulgated, approved or entered thereunder,
relating to pollution or protection of public or employee health
and safety, the environment or natural resource damages including,
without limitation, those relating to (i) emissions,
discharges, releases or threatened releases of Hazardous Material
in or into the environment (including, without limitation, ambient
air, surface water, groundwater, drinking water, land surface or
subsurface strata, and natural resources such as wetlands, flora
and fauna) or exposure thereto, (ii) the manufacture,
processing, distribution, use, generation, treatment storage,
disposal, transport, handling or recycling of Hazardous Material,
(iii) underground or aboveground storage tanks and related
piping, and emissions, discharges, releases or threatened releases
therefrom. “ Hazardous Material ” means any
substance, material, pollutant, contaminant, chemical, constituent
or waste, including without limitation, petroleum, including crude
oil or any fraction thereof, and petroleum products, natural gas
and natural gas liquids, subject to regulation under or which could
give rise to liability under Environmental Law.
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(zz) Neither
the Issuers nor any Guarantor is in violation of its certificate of
incorporation, operating agreement or bylaws, and no default or
breach exists, and no event has occurred that, with notice or lapse
of time or both, would constitute a default in the due performance
and observation of any term, covenant or condition of any
indenture, mortgage, deed of trust, lease, loan agreement,
stockholders’ agreement or any other agreement or instrument
to which the Issuers or any of their subsidiaries or any other
Guarantor is a party or by which the Issuers or any of their
subsidiaries or any other Guarantor is bound or to which any of
their respective properties are subject.
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(aaa) The
Issuers and each of their subsidiaries and each other Guarantor has
filed all foreign, federal, state and local tax returns that are
required to be filed or has requested extensions thereof and has
paid all taxes required to be paid by it and any other assessment,
fine or penalty levied against it, to the extent that any of the
foregoing is due and payable, except for any such assessment, fine
or penalty that is currently being contested in good faith and for
which the Issuers and their subsidiaries and each other Guarantor
retains adequate reserves.
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(bbb) Except
as disclosed in the Final Memorandum, there are no contracts,
agreements or understandings between the Issuers or any of their
subsidiaries or any other Guarantor and any
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