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First Amendment
 
to
 
Credit Agreement
 
among
   
Rex Energy Corporation,
as Borrower,
 
KeyBank National Association,
as Administrative Agent,
 
and
 
The Lenders Signatory Hereto
 
Effective as of April 14, 2008
 

 
 
 
 
 

 
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First Amendment to Credit Agreement

This First Amendment to Credit Agreement (this “First Amendment”) executed
effective as of the 14th of April, 2008 (the “First Amendment Effective Date”)
is among Rex Energy Corporation, a corporation formed under the laws of the
State of Delaware (the “Borrower”); 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 Cred it Agreement dated as of September 28, 2007 (the “Credit
Agreement”), pursuant to which the Lenders have made certain credit available to
and on behalf of the Borrower.

B.           The Borrower has requested and the Administrative Agent and the
Lenders have agreed to amend certain provisions of the Credit Agreement.

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

Section 2.     Amendments to Credit Agreement.

2.1      Amendments to Section 9.18.  Section 9.18 is hereby amended by deleting
such Section in its entirety and replacing it with the following:
 
“Section 9.18 Swap Agreements.  The Borrower will not, and will not permit any
Subsidiary to, enter into any Swap Agreements with any Person other than (a)
Swap Agreements in respect of commodities (i) with an Approved Counterparty and
(ii) the notional volumes for which (when aggregated with other commodity Swap
Agreements then in effect other than basis differential swaps on volumes already
hedged pursuant to other Swap Agreements) do not exceed, as of the date such
Swap Agreement is executed, 85% of the reasonably anticipated projected
production from Proved Developed Producing Reserves for the 36 months following
the date such Swap Agreement is entered into, and 75% thereafter, for each of
crude oil and natural gas, calculated separately, and (b) Swap Agreements in
respect of interest rates with an Approved Counterparty, as follows: (i) Swap
Agreements effectively converting interest rates from fixed to floating, the
notional amounts of which (when aggregated with all other Swap Agreements of the
Borrower and its Subsidiaries then in effect effectively converting interest
rates from fixed to floating) do not exceed 50% of the
 
 
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 then outstanding principal amount of the Borrower’s Debt for borrowed money
which bears interest at a fixed rate and (ii) Swap Agreements effectively
converting interest rates from floating to fixed, the notional amounts of which
(when aggregated with all other Swap Agreements of the Borrower and its
Subsidiaries then in effect effectively converting interest rates from floating
to fixed) do not exceed the greater of $20,000,000 and 75% of the then
outstanding principal amount of the Borrower’s Debt for borrowed money which
bears interest at a floating rate, and (iii) Swap Agreements required under
Section 6.01(q)  In no event shall any Swap Agreement contain any requirement,
agreement or covenant for the Borrower or any Subsidiary to post collateral or
margin to secure their obligations under such Swap Agreement or to cover market
exposures other than collateral provided for in, and upon the terms and
conditions set forth in, this Agreement and the relevant Security Instruments.”

2.2            Section 3.05.  Section 3.05 is hereby amended by adding the
following subsection (d):

“(d)         Borrowing Base Increase Fees.  The Borrower agrees to pay to the
Administrative Agent, for the account of each Lender then party to this
Agreement, ratably in accordance with its Applicable Percentage, a Borrowing
Base increase fee equal to 25 bps on the amount of any increase of the Borrowing
Base over the highest Borrowing Base previously in effect, payable on the
effective date of any such increase to the Borrowing Base.”
 
2.3           Annex I.  Annex I is hereby amended and restated as follows:
 
Aggregate Maximum Credit Amounts
                                            

 
Name of Lender
Maximum Credit Amount
   
KeyBank National Association
$57,777,778
    
BNP Paribas
$40,000,000
   
Sovereign Bank
$35,555,556
   
Allied Irish Bank
$33,333,333
   
M&T Bank
$33,333,333
   
TOTAL
$200,000,000
 

Section 3.     Borrowing Base.  Pursuant to Section 2.07 of the Credit
Agreement, the Borrowing Base is hereby increased from $75,000,000 to
$90,000,000, until the next Redetermination Date.
 
Section 4.     Conditions Precedent.  The effectiveness of this First Amendment
is subject to the receipt by the Administrative Agent of the following documents
and satisfaction of the other conditions provided in this Section 4, each of
which shall be reasonably satisfactory to the Administrative Agent in form and
substance:

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

 
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4.2           Payment of Outstanding Invoices.  Payment by the Borrower to the
Administrative Agent of all fees, including the Borrowing Base increase fee
pursuant to Section 3.05(d) of the Credit Agreement, and other amounts due and
payable on or prior to the First 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.

4.3           Promissory 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.
 
4.4           No Default.  No Default or Event of Default shall have occurred
and be continuing as of the First Amendment Effective Date.

Section 5.     Representations and Warranties; Etc.  The Borrower hereby
affirms:  (a) that as of the date of execution and delivery of this First
Amendment, all of the representations and warranties contained in each Loan
Document to which the Borrower is a party are true and correct in all material
respects as though made on and as of the First 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 First Amendment and to the transactions
contemplated hereby, no Defaults exist under the Loan Documents or will exist
under the Loan Documents.

Section 6.      Miscellaneous.

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

6.2           Ratification and Affirmation of the Borrower.  The Borrower hereby
expressly (i) acknowledges the terms of this First Amendment, (ii) ratifies and
affirms its obligations under the Credit Agreement and the other Security
Instruments to which it is a party, (iii) acknowledges, renews and extends its
continued liability under the Credit Agreement and the other Security
Instruments to which it is a party remains in full force and effect with respect
to the Indebtedness as amended hereby.

6.3           Counterparts.  This First 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.

6.4           No Oral Agreement.  This written First 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.

 
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6.5           Governing Law.  This First 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.

 
 
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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
duly executed effective as of the date first written above.

BORROWER:                                                                                                                                                               REX
ENERGY CORPORATION

 
By:
/s/  Benjamin W. Hulburt
   
Name:
Benjamin W. Hulburt
   
Title:
Chief Executive Officer
 

ADMINISTRATIVE
AGENT:                                                                                                                                 
 KEYBANK NATIONAL ASSOCIATION
                                      as Administrative Agent and Lender

 
By:
/s/  Kevin Hays
   
Name:
Kevin Hays
   
Title
Director
 

First Amendment
Signature Page - 6

 
 

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LENDERS:                                                                                                                                                                    BNP
PARIBAS
 

 
By:
/s/  Douglas R. Liftman
   
Name:
Douglas R. Liftman
   
Title:
Managing Director
 

 

 
By:
/s/  Betsy Jocher
   
Name:
Betsy Jocher
   
Title:
Director
 

First Amendment
Signature Page - 7

 

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                                            SOVEREIGN BANK
 

 
By:
/s/  Robert D. Lanigan
   
Name:
Robert D. Lanigan
   
Title:
Sovereign Bank
 

 

First Amendment
Signature Page - 8

 
 

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ALLIED IRISH BANK
 

 
By:
/s/ David O’Driscoll
   
Name:
David O’Driscoll
   
Title:
Assistant Vice President
 

 

 
By:
/s/ Roisin O’Connell
   
Name:
Roisin O’Connell
   
Title:
Vice President
 

First Amendment
Signature Page - 9

 
 

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M & T BANK
 

 
By:
/s/ David Ladori
   
Name:
David Ladori
   
Title:
Assistant Vice President
 

 
 

First Amendment
Signature Page - 10

 
 

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