Exhibit 10.2

 

 

 

SECOND AMENDMENT

TO

SECOND LIEN CREDIT AGREEMENT

AMONG

REX ENERGY CORPORATION,

as Borrower,

THE GUARANTORS,

KEYBANK NATIONAL ASSOCIATION,

as Administrative Agent,

AND

THE LENDERS SIGNATORY HERETO

DATED AS OF SEPTEMBER 4, 2012

 

 

 

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SECOND AMENDMENT TO SECOND LIEN CREDIT AGREEMENT

This SECOND AMENDMENT TO SECOND LIEN CREDIT AGREEMENT (this “Second Amendment”)
dated as of September 4, 2012 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 Second Lien Credit Agreement dated as of December 22, 2011, as amended
by that certain First Amendment to Second Lien Credit Agreement, dated as of
May 7, 2012 (as so amended, the “Credit Agreement”), pursuant to which the
Lenders have made certain term loans available to the Borrower.

B. The Guarantors are parties to that certain Guaranty and Second Lien
Collateral Agreement dated as of December 22, 2011 made by each of the 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
Section 8.16 of the Credit Agreement as more fully set forth herein.

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 Second Amendment, shall have the
meaning ascribed such term in the Credit Agreement. Unless otherwise indicated,
all section references in this Second Amendment refer to sections of the Credit
Agreement.

Section 2. Amendment to Credit Agreement.

2.1 Amendments to Section 1.02.

(a) The definition of “Keystone” is hereby deleted.

(b) The following definition is hereby added where alphabetically appropriate to
read as follows:

“Northstar” means Northstar #3 LLC, a Delaware limited liability company.

 

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2.2 Amendment to Section 8.16. Section 8.16 is hereby amended by deleting the
words “36 months” contained therein and replacing them with the words “24
months”.

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

(r) Investments by R.E. Gas in Northstar and RW Gathering in an aggregate amount
not to exceed $30,000,000 in cash and $3,000,000 in Property.

Section 3. Conditions Precedent. This Second Amendment shall become effective on
the date on which each of the following conditions is satisfied (or waived in
accordance with Section 12.02 of the Credit Agreement) (the “Second Amendment
Effective Date”):

3.1 Second Amendment. The Administrative Agent shall have received multiple
counterparts as requested of this Second Amendment from the Borrower, each other
Obligor and the Majority Lenders.

3.2 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 Second Amendment Effective Date, including, to the extent invoiced,
reimbursement or payment of all reasonable out-of-pocket expenses required to be
reimbursed or paid by the Borrower (including, but not limited to, the
reasonable fees of Jones Day).

3.3 No Default. After giving effect to the terms of this Second Amendment, no
Default or Event of Default shall be continuing as of the Second Amendment
Effective Date.

Section 4. Representations and Warranties; Etc. Each Obligor hereby affirms:
(a) that as of the date of execution and delivery of this Second Amendment,
after giving effect to the terms of this Second 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 Second 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 Second Amendment and to the transactions contemplated hereby, no Defaults
exist under the Loan Documents or will exist under the Loan Documents.

Section 5. Miscellaneous.

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

5.2 Ratification and Affirmation of the Obligors. Each Obligor hereby expressly
(a) acknowledges the terms of this Second 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

 

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which it is a party remains in full force and effect, as amended hereby; and
(c) agrees that from and after the Second 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
Second Amendment.

5.3 Counterparts. This Second 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
Second Amendment by telecopy, facsimile or email transmission shall be effective
as delivery of a manually executed counterpart of this Second Amendment.

5.4 No Oral Agreement. THIS WRITTEN SECOND 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 UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

5.5 Governing Law. THIS SECOND 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.

5.6 Release of Lenders. IN CONSIDERATION OF THIS SECOND 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
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 OTHER OBLIGOR, WHICH
BORROWER, ANY OTHER OBLIGOR, OR ANY SUBSIDIARY MAY HAVE OR WHICH MAY HEREAFTER
ACCRUE RELATED TO ANY ACTIONS OR FACTS OCCURRING PRIOR TO THE SECOND AMENDMENT
EFFECTIVE DATE AGAINST ANY RELEASED PARTY, FOR OR BY REASON OF ANY MATTER, CAUSE
OR THING WHATSOEVER OCCURRING ON OR PRIOR TO THE SECOND AMENDMENT EFFECTIVE
DATE, WHICH RELATE TO, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY THE CREDIT
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 NOTES, THE NEGOTIATION OF ANY OF THE CREDIT
AGREEMENT, THE NOTES, OR THE OTHER LOAN DOCUMENTS, THE TERMS THEREOF, OR THE
APPROVAL, ADMINISTRATION, ENFORCEMENT OR SERVICING THEREOF.

 

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[Signatures Begin on Next Page]

 

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

 

BORROWER:     REX ENERGY CORPORATION     By:  

/s/ Thomas C. Stabley

      Thomas C. Stabley       Chief Executive Officer GUARANTORS:     REX ENERGY
OPERATING CORP.     By:  

/s/ Thomas C. Stabley

      Thomas C. Stabley       Chief Executive Officer     REX ENERGY I, LLC    
R.E. GAS DEVELOPMENT, LLC     PENNTEX RESOURCES ILLINOIS, INC.     REX ENERGY
IV, LLC     By:  

/s/ Thomas C. Stabley

      Thomas C. Stabley       Chief Executive Officer

Second Amendment

Signature Page

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ADMINISTRATIVE AGENT:     KEYBANK NATIONAL ASSOCIATION,     as Administrative
Agent and Lender     By:  

/s/ Chulley Bogle

    Name:   Chulley Bogle     Title:   Vice President

Second Amendment

Signature Page

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LENDERS:     WELLS FARGO BANK, N.A.     By:  

/s/ Suzanne Ridenhour

    Name:   Suzanne Ridenhour     Title:   Vice President

Second Amendment

Signature Page

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SUNTRUST BANK By:  

/s/ Yann Pirio

Name:   Yann Pirio Title:   Director

Second Amendment

Signature Page

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UNIONBANCAL EQUITIES, INC. By:  

/s/ Derrick Pan

Name:   Derrick Pan Title:   Vice President By:  

/s/ Margaret Elower

Name:   Margaret Elower Title:   Vice President

Second Amendment

Signature Page