Exhibit 10.1

 

 

 

TENTH 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

DATED AS OF AUGUST 31, 2012

 

 

 

--------------------------------------------------------------------------------

TENTH AMENDMENT TO CREDIT AGREEMENT

This TENTH AMENDMENT TO CREDIT AGREEMENT (this “Tenth Amendment”) dated as of
August 31, 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 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, as amended by that certain Fifth Amendment
dated as of August 30, 2010, as amended by that certain Sixth Amendment dated
effective as of August 2, 2011, as amended by that certain Seventh Amendment
dated as of September 30, 2011, as amended by that certain Eighth Amendment
dated as of December 22, 2011, and as amended by that certain Ninth Amendment
dated as of May 7, 2012 (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 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 Tenth Amendment, shall have the
meaning ascribed such term in the Credit Agreement. Unless otherwise indicated,
all article and section references in this Tenth Amendment refer to articles and
sections of the Credit Agreement.

Section 2. Amendments to Credit Agreement.

2.1 Amendments to Section 1.02.

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

 

Page 1

--------------------------------------------------------------------------------

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

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

2.2 Amendment to Section 9.02(j). Section 9.02(j) is hereby amended by replacing
the reference to $200,000,000 therein with $300,000,000.

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.

2.4 Amendment to Section 11.08. Section 11.08 is hereby amended by replacing the
reference to “Vinson & Elkins L.L.P.” therein with “Paul Hastings LLP”.

2.5 Amendment to Section 12.01(a)(ii). Section 12.01(a)(ii) is hereby amended
and restated in its entirety to read as follows:

(ii) if such notice is not a payment, to the Administrative Agent or the Issuing
Bank, to it at 8115 Preston Road, Suite 500, Dallas, TX 75225, Attention of Evan
Knooihuizen (Telecopy No. 214-414-2610), with a copy to 127 Public Square,
Cleveland, Ohio 44114, Attention of Yvette Dyson-Owens (Facsimile:
(216) 689-5962);

Section 3. Borrowing Base Increase. For the period from and including the Tenth
Amendment Effective Date (as defined below) to but excluding the next
Redetermination Date, the amount of the Borrowing Base shall be equal to
$290,000,000. Notwithstanding the foregoing, the Borrowing Base may be subject
to further adjustments from time to time pursuant to Sections 2.07(e), 2.07(f),
8.13(c) or 9.12(d) of the Credit Agreement.

Section 4. Conditions Precedent. This Tenth 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 “Tenth Amendment
Effective Date”):

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

4.2 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 Tenth 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 Paul Hastings LLP).

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

 

Page 2

--------------------------------------------------------------------------------

Section 5. Representations and Warranties; Etc. Each Obligor hereby affirms:
(a) that as of the date of execution and delivery of this Tenth Amendment, after
giving effect to the terms of this Tenth 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 Tenth
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 Tenth
Amendment and to the transactions contemplated hereby, no Default exists or will
exist under any Loan Document to which it is a party.

Section 6. Miscellaneous.

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

6.2 Ratification and Affirmation of the Obligors. Each Obligor hereby expressly
(a) acknowledges the terms of this Tenth 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 (c) agrees that from and after the Tenth 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 Tenth Amendment.

6.3 Loan Document. This Tenth Amendment is a “Loan Document” as defined and
described in the Credit Agreement and all of the terms and provisions of the
Credit Agreement relating to Loan Documents shall apply hereto.

6.4 Severability. Any provision of this Tenth Amendment which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

6.5 Successors and Assigns. This Tenth Amendment shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns.

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

6.7 No Oral Agreement. THIS WRITTEN TENTH 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 SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE
ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

Page 3

--------------------------------------------------------------------------------

6.8 Governing Law. THIS TENTH 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.

6.9 Release of Lenders. IN CONSIDERATION OF THIS TENTH 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 TENTH AMENDMENT
EFFECTIVE DATE AGAINST ANY RELEASED PARTY, FOR OR BY REASON OF ANY MATTER, CAUSE
OR THING WHATSOEVER OCCURRING ON OR PRIOR TO THE TENTH 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]

 

Page 4

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the parties hereto have caused this Tenth Amendment to be
duly executed effective as of the Tenth 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

Tenth Amendment

Signature Page

--------------------------------------------------------------------------------

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

/s/ Paul J. Pace

      Paul J. Pace       Senior Vice President

Tenth Amendment

Signature Page

--------------------------------------------------------------------------------

LENDERS:     ROYAL BANK OF CANADA     By:  

/s/ Kristan Spivey

    Name:   Kristan Spivey     Title:   Autorized Signatory

Tenth Amendment

Signature Page

--------------------------------------------------------------------------------

M&T BANK By:  

/s/ David J. Ladori

Name:   David J. Ladori Title:   Vice President

Tenth Amendment

Signature Page

--------------------------------------------------------------------------------

CAPITAL ONE, NATIONAL ASSOCIATION. By:  

/s/ Peter Shen

Name:   Peter Shen Title:   Vice President

Tenth Amendment

Signature Page

--------------------------------------------------------------------------------

BANK OF MONTREAL By:  

/s/ James V. Ducote

Name:   James V. Ducote Title:   Director

Tenth Amendment

Signature Page

--------------------------------------------------------------------------------

UNION BANK, N.A. By:  

/s/ Zachary Holly

Name:   Zachary Holly Title:   Vice President

Tenth Amendment

Signature Page

--------------------------------------------------------------------------------

WELLS FARGO BANK, NATIONAL ASSOCIATION By:  

/s/ Suzanne Ridenhour

Name:   Suzanne Ridenhour Title:   Vice President

Tenth Amendment

Signature Page

--------------------------------------------------------------------------------

SUNTRUST BANK By:  

/s/ Yann Pirio

Name:   Yann Pirio Title:   Director

Tenth Amendment

Signature Page

--------------------------------------------------------------------------------

U.S. BANK NATIONAL ASSOCIATION By:  

/s/ Daniel K. Hansen

Name:   Daniel K. Hansen Title:   Vice President

Tenth Amendment

Signature Page