Exhibit 10.2

Execution Version

SIXTH AMENDMENT

TO

CREDIT AGREEMENT

AMONG

REX ENERGY CORPORATION,

as Borrower,

the Guarantors,

KEYBANK NATIONAL ASSOCIATION,

as Administrative Agent,

ROYAL BANK OF CANADA,

as Syndication Agent,

KEYBANK NATIONAL ASSOCIATION

AND

ROYAL BANK OF CANADA,

as Joint Arrangers,

and

The Lenders Signatory Hereto

Effective as of August 2, 2011

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SIXTH AMENDMENT TO CREDIT AGREEMENT

This SIXTH AMENDMENT TO CREDIT AGREEMENT (this “Sixth Amendment”) executed
effective as of August 2, 2011 (the “Sixth Amendment Effective Date”) is among
REX ENERGY CORPORATION, a corporation formed under the laws of the State of
Delaware (the “Borrower”); each of the undersigned guarantors (the “Guarantors”,
and together with the Borrower, the “Obligors”); KEYBANK NATIONAL ASSOCIATION,
as administrative agent for the Lenders (in such capacity, together with its
successors, the “Administrative Agent”); and the Lenders signatory hereto.

Recitals

A. The Borrower, the Administrative Agent and the Lenders are parties to that
certain Credit Agreement dated as of September 28, 2007, as amended by that
certain First Amendment dated as of April 14, 2008, as amended by that certain
Second Amendment dated as of December 23, 2008, as amended by that certain Third
Amendment dated as of April 20, 2009, as amended by that certain Fourth
Amendment dated December 18, 2009, and as amended by that certain Fifth
Amendment dated as of August 30, 2010 (the “Credit Agreement”), pursuant to
which the Lenders have made certain credit available to and on behalf of the
Borrower.

B. The Guarantors are parties to that certain Guaranty and Collateral Agreement
dated as of September 28, 2007 made by each of the other Grantors (as defined
therein) in favor of the Administrative Agent (as heretofore amended, modified
or supplemented, the “Guaranty”).

C. The Borrower, the Administrative Agent and the Lenders have agreed to amend
certain provisions of the Credit Agreement as more fully set forth herein.

D. NOW, THEREFORE, in consideration of the premises and the mutual covenants
herein contained, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

Section 1. Defined Terms. Each capitalized term which is defined in the Credit
Agreement, but which is not defined in this Sixth Amendment, shall have the
meaning ascribed such term in the Credit Agreement. Unless otherwise indicated,
all section references in this Sixth Amendment refer to the Credit Agreement.

Section 2. Amendments to Credit Agreement.

2.1 Amendments to Section 1.02. Section 1.02 is hereby amended by restating the
following definitions in the appropriate alphabetical order:

“Applicable Margin” means, for any day, with respect to any ABR Loan or
Eurodollar Loan, or with respect to the Commitment Fee Rate, as the case may

 

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be, the rate per annum set forth in the Borrowing Base Utilization Grid below
based upon the Borrowing Base Utilization Percentage then in effect:

 

Borrowing Base Utilization Grid

Borrowing Base Utilization Percentage

   <25.0%   ³ 25.0%
<50.0%   ³ 50.0%
< 75.0%   ³ 75.0%
<90.0%   ³ 90.0%

Eurodollar Loans

   1.750%   2.000%   2.250%   2.500%   2.750%

ABR Loans

   0.500%   0.750%   1.000%   1.250%   1.500%

Commitment Fee Rate

   0.375%   0.375%   0.500%   0.500%   0.500%

Each change in the Applicable Margin shall apply during the period commencing on
the effective date of such change and ending on the date immediately preceding
the effective date of the next such change, provided, however, that if at any
time the Borrower fails to deliver a Reserve Report pursuant to Section 8.12(a)
then the “Applicable Margin” means the rate per annum set forth on the grid when
the Borrowing Base Utilization Percentage is at its highest level until the day
that such Reserve Report is delivered to the Administrative Agent, and as of
such delivery date and until the effective date of the next change in the
Applicable Margin, the Applicable Margin shall be based on the Borrowing Base
reflected by such Reserve Report.

“LC Commitment” at any time means twenty-five million dollars ($25,000,000).

“Maturity Date” means September 28, 2015.

2.2 Amendment to Section 9.05(r). Section 9.05(r) is hereby amended and restated
in its entirety to read as follows:

“(r) Investment by R.E. Gas in Keystone in an amount not to exceed $25,000,000
in cash and $1,800,000 in Property.”

Section 3. Adjustment to Borrowing Base. For the period from and including the
Sixth Amendment Effective Date to but excluding the next Redetermination Date,
the amount of the Borrowing Base shall be equal to $240,000,000. Notwithstanding
the foregoing, the Borrowing Base may be subject to further adjustments from
time to time pursuant to Section 8.13 or Section 9.12. The redetermination of
the Borrowing Base pursuant to this Section 3 shall not constitute an Interim
Redetermination.

Section 4. Assignments, New Lenders and Reallocation of Commitments and Loans.
The Lenders have agreed among themselves, in consultation with the Borrower, to
reallocate their respective Maximum Credit Amounts and Commitments and to, among
other things, allow SunTrust Bank and U.S. Bank National Association to become
parties to the Credit Agreement as Lenders, (the “New Lenders”) by acquiring an
interest in the total Maximum Credit Amounts

 

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and Commitments. The Administrative Agent and the Borrower hereby consent to
such reallocation and the New Lenders’ acquisition of an interest in the Maximum
Credit Amounts and Commitments and the other Lenders’ assignments of their
Commitments. On the Sixth Amendment Effective Date and after giving effect to
such reallocations, (a) the Maximum Credit Amounts and Commitment of each Lender
shall be as set forth on Annex I of this Sixth Amendment, which Annex I
supersedes and replaces Annex I to the Credit Agreement (and Annex I to the
Credit Agreement is hereby amended and restated in its entirety to read as set
forth on Annex I attached hereto) and (b) each New Lender is hereby added as a
Lender with the Maximum Credit Amount specified for it in the attached Annex I,
and the New Lenders shall become parties to the Credit Agreement as “Lenders”
and have all of the rights and obligations of a Lender under the Credit
Agreement and the other Loan Documents. With respect to such reallocation, the
New Lenders shall be deemed to have acquired the Maximum Credit Amount and
Commitment allocated to them from each of the other Lenders pursuant to the
terms of the Assignment and Assumption Agreement attached as Exhibit E to the
Credit Agreement as if the New Lenders and the other Lenders had executed an
Assignment and Assumption Agreement with respect to such allocation.

Section 5. Conditions Precedent. The effectiveness of this Sixth Amendment is
subject to the receipt by the Administrative Agent of the following documents
and satisfaction of the other conditions provided in this Section 5, each of
which shall be reasonably satisfactory to the Administrative Agent in form and
substance:

5.1 Sixth Amendment. The Administrative Agent shall have received multiple
counterparts as requested of this Sixth Amendment from the Borrower, each other
Obligor and each Lender.

5.2 Payment of Outstanding Invoices. Payment by the Borrower to the
Administrative Agent of all fees and other amounts due and payable on or prior
to the Sixth Amendment Effective Date, including, to the extent invoiced,
reimbursement or payment of all out-of-pocket expenses required to be reimbursed
or paid by the Borrower (including, but not limited to the fees of Vinson &
Elkins LLP) and a deposit of $600 to be held by such counsel and applied toward
payment of costs and expenses for recordation of the amendments to the Security
Instruments referred to in Section 5.5 of this Sixth Amendment).

5.3 Notes. The Administrative Agent shall have received duly executed Notes
payable to the order of each Lender in a principal amount equal to its Maximum
Credit Amount dated as of the date hereof.

5.4 Amendment to Security Instruments. The Administrative Agent shall have
received from each party thereto duly executed counterparts (in such number as
may be requested by the Administrative Agent) of the amendments to the Security
Instruments listed on Exhibit A hereto.

5.5 No Default. No Default or Event of Default shall have occurred and be
continuing as of the Sixth Amendment Effective Date.

 

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Section 6. Representations and Warranties; Etc. Each Obligor hereby affirms:
(a) that as of the date of execution and delivery of this Sixth Amendment, after
giving effect to the terms of this Sixth Amendment, all of the representations
and warranties contained in each Loan Document to which it is a party are true
and correct in all material respects as though made on and as of the Sixth
Amendment Effective Date (unless made as of a specific earlier date, in which
case, was true as of such date); and (b) that after giving effect to this Sixth
Amendment and to the transactions contemplated hereby, no Defaults exist under
the Loan Documents or will exist under the Loan Documents.

Section 7. Miscellaneous.

7.1 Confirmation. The provisions of the Credit Agreement (as amended by this
Sixth Amendment) shall remain in full force and effect in accordance with its
terms following the effectiveness of this Sixth Amendment.

7.2 Ratification and Affirmation of the Obligors. Each Obligor hereby expressly
(a) acknowledges the terms of this Sixth Amendment; (b) ratifies and affirms its
obligations under, and acknowledges, renews and extends its continued liability
under, each Loan Document to which it is a party, and agrees that each Loan
Document to which it is a party remains in full force and effect, as amended
hereby and the other amendments to the Security Instruments executed in
connection herewith; and (c) agrees that from and after the Sixth Amendment
Effective Date each reference to the Credit Agreement in the Guaranty and the
other Loan Documents shall be deemed to be a reference to the Credit Agreement,
as amended by this Sixth Amendment.

7.3 Counterparts. This Sixth Amendment may be executed by one or more of the
parties hereto in any number of separate counterparts, and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed counterpart of a signature page of this
Sixth Amendment by telecopy, facsimile or email transmission shall be effective
as delivery of a manually executed counterpart of this Sixth Amendment.

7.4 No Oral Agreement. THIS WRITTEN SIXTH AMENDMENT, THE CREDIT AGREEMENT AND
THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE
ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.

7.5 Governing Law. THIS SIXTH AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE
VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

7.6 Release of Lenders. IN CONSIDERATION OF THIS SIXTH AMENDMENT AND, SUBJECT TO
THE CONDITIONS STATED HEREIN, THE BORROWER AND EACH OTHER OBLIGOR HEREBY
RELEASES, ACQUITS, FOREVER DISCHARGES, AND COVENANTS NOT TO SUE, THE

 

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ADMINISTRATIVE AGENT AND EACH OF THE LENDERS, ALONG WITH ALL OF THEIR
BENEFICIARIES, OFFICERS, DIRECTORS, AGENTS, EMPLOYEES, SERVANTS, ATTORNEYS AND
REPRESENTATIVES, AS WELL AS THEIR RESPECTIVE HEIRS, EXECUTORS, LEGAL
REPRESENTATIVES, ADMINISTRATORS, PREDECESSORS IN INTEREST, SUCCESSORS AND
ASSIGNS (EACH INDIVIDUALLY, A “RELEASED PARTY” AND COLLECTIVELY, THE “RELEASED
PARTIES”) FROM ANY AND ALL CLAIMS, DEMANDS, DEBTS, LIABILITIES, SUITS, OFFSETS
AGAINST THE INDEBTEDNESS EVIDENCED BY THE LOAN DOCUMENTS AND ACTIONS, CAUSES OF
ACTION OR CLAIMS FOR RELIEF OF WHATEVER KIND OR NATURE, WHETHER KNOWN OR
UNKNOWN, SUSPECTED OR UNSUSPECTED BY BORROWER OR ANY OBLIGOR, WHICH BORROWER,
ANY OBLIGOR, OR ANY SUBSIDIARY MAY HAVE OR WHICH MAY HEREAFTER ACCRUE RELATED TO
ANY ACTIONS OR FACTS OCCURRING PRIOR TO THE SIXTH AMENDMENT EFFECTIVE DATE
AGAINST ANY RELEASED PARTY, FOR OR BY REASON OF ANY MATTER, CAUSE OR THING
WHATSOEVER OCCURRING ON OR PRIOR TO THE SIXTH AMENDMENT EFFECTIVE DATE, WHICH
RELATE TO, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY THE CREDIT AGREEMENT, ANY
HEDGING AGREEMENT, ANY NOTE, ANY SECURITY INSTRUMENT, ANY OTHER LOAN DOCUMENT OR
THE TRANSACTIONS EVIDENCED THEREBY, INCLUDING, WITHOUT LIMITATION, ANY
DISBURSEMENTS UNDER THE CREDIT AGREEMENT, ANY HEDGING AGREEMENT, ANY NOTES, THE
NEGOTIATION OF ANY OF THE CREDIT AGREEMENT, THE SWAP AGREEMENTS, THE NOTES, OR
THE OTHER LOAN DOCUMENTS, THE TERMS THEREOF, OR THE APPROVAL, ADMINISTRATION,
ENFORCEMENT OR SERVICING THEREOF.

[Signatures Begin on Next Page]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Sixth Amendment to be
duly executed effective as of the Sixth Amendment Effective Date.

 

BORROWER:   REX ENERGY CORPORATION   By:  

 

    Thomas C. Stabley     Chief Financial Officer GUARANTORS:   R.E. GAS
DEVELOPMENT, LLC   By:  

 

    Thomas C. Stabley     Vice President   REX ENERGY I, LLC   REX ENERGY
OPERATING CORP.   PENNTEX RESOURCES ILLINOIS, INC.   REX ENERGY IV, LLC   By:  

 

    Thomas C. Stabley     Vice President

 

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ADMINISTRATIVE AGENT:  

KEYBANK NATIONAL ASSOCIATION,

as Administrative Agent and Lender

  By:  

 

  Name:   David Morris   Title:   Vice President

 

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LENDERS:   ROYAL BANK OF CANADA   By:  

 

  Name:     Title:  

 

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  M&T BANK   By:  

 

  Name:     Title:  

 

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  CAPITAL ONE, N.A.   By:  

 

  Name:     Title:  

 

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  BANK OF MONTREAL   By:  

 

  Name:     Title:  

 

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  UNION BANK, N.A.   By:  

 

  Name:     Title:  

 

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  WELLS FARGO BANK, NATIONAL ASSOCIATION   By:  

 

  Name:     Title:  

 

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  SUNTRUST BANK   By:  

 

  Name:     Title:  

 

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  U.S. BANK NATIONAL ASSOCIATION   By:  

 

  Name:     Title:  

 

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ANNEX I

LIST OF MAXIMUM CREDIT AMOUNTS

Aggregate Maximum Credit Amounts

 

Name of Lender

   Maximum
Credit Amount  

KeyBank National Association

   $ 72,916,667   

Royal Bank of Canada

   $ 63,194,444   

Bank of Montreal

   $ 63,194,444   

Wells Fargo Bank, National Association

   $ 63,194,444   

Capital One, N.A.

   $ 58,333,333   

M&T Bank

   $ 58,333,333   

Union Bank, N.A.

   $ 58,333,333   

SunTrust Bank

   $ 31,250,000   

U.S. Bank National Association

   $ 31,250,000      

 

 

 

TOTAL

   $ 500,000,000      

 

 

 

 

Annex I

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EXHIBIT A

AMENDMENT TO SECURITY INSTRUMENTS

1.) First Amendment to Open End Mortgage, Assignment of Leases, Assignment of
As-Extracted Collateral, Security Agreement, Fixture Filing and Financing
Statement from R.E. Gas Development, LLC, as Mortgagor to KeyBank National
Association, as Mortgagee and Administrative Agent (Pennsylvania).

2.) First Amendment to Open End Mortgage, Assignment of Leases, Assignment of
As-Extracted Collateral, Security Agreement, Fixture Filing and Financing
Statement from Rex Energy I, LLC, as Mortgagor to KeyBank National Association,
as Mortgagee and Administrative Agent (Pennsylvania).

3.) Second Amendment to Mortgage, Fixture Filing, Assignment of As-Extracted
Collateral, Security Agreement and Financing Statement from Rex Energy I, LLC,
as Mortgagor to KeyBank National Association, as Mortgagee and Administrative
Agent (Illinois).

4.) Second Amendment to Mortgage, Fixture Filing, Assignment of As-Extracted
Collateral, Security Agreement and Financing Statement from Rex Energy I, LLC,
as Mortgagor to KeyBank National Association, as Mortgagee and Administrative
Agent (Indiana).

5.) Second Amendment to Mortgage, Fixture Filing, Assignment of As-Extracted
Collateral, Security Agreement and Financing Statement from Rex Energy IV, LLC
and PennTex Resources Illinois, Inc., as Mortgagor to KeyBank National
Association, as Mortgagee and Administrative Agent (Indiana).

6.) Second Amendment to Mortgage, Fixture Filing, Assignment of As-Extracted
Collateral, Security Agreement and Financing Statement from Rex Energy IV, LLC
and PennTex Resources Illinois, Inc. to KeyBank National Association, as
Mortgagee and Administrative Agent (Illinois).

7.) Third Amendment to Mortgage, Fixture Filing, Assignment of As-Extracted
Collateral, Security Agreement and Financing Statement from Rex Energy IV, LLC
to KeyBank National Association, as Mortgagee and Administrative Agent
(Illinois).

 

Exhibit A