Document:

Ex_101

		
			Exhibit 10.1
		

		
			 
		

		
			LEASE AMENDING AGREEMENT NO. 2
		

		
			 
		

		
			THIS LEASE AMENDING AGREEMENT NO. 2 (“Amendment”) is made as of May 17, 2018, between G&I VIII 605 WATERFORD LLC,  a Delaware limited liability company (“Landlord”), and WINMARK CORPORATION,  a Minnesota corporation (“Tenant”).
		

		
			 
		

		
			A.  Landlord and Tenant, or their predecessors in interest, entered into a written lease agreement dated September 26,  2008 (“Initial Lease”), which has not previously been amended or modified, except by Lease Amending Agreement No. 1 dated October 21, 2013 (“Amendment No. 1”).    The Initial Lease and Amendment No. 1 are referred to herein collectively as the “Current Lease.”
		

		
			 
		

		
			B.  The Current Lease relates to the premises (“Premises”) consisting of an agreed 41,016 rentable square feet on the first, third and fourth floors of the building located at 605 Waterford Park, 605 North U.S. Highway 169, Plymouth, Minnesota (the “Building”).
		

		
			 
		

		
			C.  Landlord and Tenant desire to extend the Lease Term and to otherwise amend the Current Lease as provided in this Amendment.
		

		
			 
		

		
			FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which are expressly acknowledged, the parties agree as follows:
		

		
			 
		

		
			1.  Effect.  The Current Lease is hereby amended to the extent necessary to give effect to this Amendment, and the terms of this Amendment shall supersede any contrary terms in the Current Lease.  All references in the Current Lease to “this Lease,” and all references in this Amendment to “the Lease,” shall be deemed to refer to the Current Lease as amended by this Amendment.  In all other respects, the terms and conditions of the Current Lease shall remain unmodified and in effect.  Unless otherwise defined herein, capitalized terms used in this Amendment shall have the same meanings as provided in the Current Lease.
		

		
			 
		

		
			2.  Lease Term.    The initial Term of the Lease is currently scheduled to expire on August 31, 2019.    The Lease Term is hereby extended for one (1) period of ten (10) years and four (4) months commencing on September 1, 2019, and ending on December 31, 2029  (“Option Term”).  Except as expressly provided otherwise in the Lease or this Amendment, the Lease shall continue during the Option Term on all of the same terms and conditions, and any reference in the Lease to the Lease Term shall be deemed to refer to and include the Option Term.  
		

		
			 
		

		
			3.  Rent.    
		

		
			 
		

		
			A.  Subject to Paragraph 3C below, during the Option Term, Tenant shall pay Minimum Rental determined at an annual rate per rentable square foot in the Premises and payable in monthly installments as follows:
		

		
			 
		

			
					
						 

					
						Period

					
					
						  Annual Rate

					
						Per Square Foot

					
					
						Monthly

					
						Installment

				
	
					
						9/1/19 - 8/31/20

					
					
						$17.00 

					
					
						$58,106.00 

				
	
					
						9/1/20 - 8/31/21

					
					
						$17.47 

					
					
						$59,712.46 

				
	
					
						9/1/21 - 8/31/22

					
					
						$17.95 

					
					
						$61,353.10 

				
	
					
						9/1/22 - 8/31/23

					
					
						$18.44 

					
					
						$63,027.92 

				
	
					
						9/1/23 - 8/31/24

					
					
						$18.95 

					
					
						$64,771.10 

				
	
					
						9/1/24 - 8/31/25

					
					
						$19.47 

					
					
						$66,548.46 

				
	
					
						9/1/25 - 8/31/26

					
					
						$20.01 

					
					
						$68,394.18 

				

		 

		

			 

		

		

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						9/1/26 - 8/31/27

					
					
						$20.56 

					
					
						$70,274.08 

				
	
					
						9/1/27 - 8/31/28

					
					
						$21.13 

					
					
						$72,222.34 

				
	
					
						9/1/28 - 8/31/29

					
					
						$21.71 

					
					
						$74,204.78 

				
	
					
						9/1/29 - 12/31/29

					
					
						$22.31 

					
					
						$76,255.58 

				

		
			 
		

		
			B.  Subject to Paragraph 3C below, in addition to Minimum Rental, Tenant shall pay Tenant’s Pro Rata Share of Real Estate Taxes and Operating Expenses due and payable during the Option Term as provided in the Lease.
		

		
			 
		

		
			C.    Notwithstanding anything to the contrary contained in this Amendment, Landlord agrees to abate Minimum Rental and Tenant’s Pro Rata Share of Real Estate Taxes and Operating Expenses for the Premises during the first four (4) months of the Option Term (“Abatement Period”); provided, that upon the occurrence of a monetary default under the Lease (beyond any applicable notice and cure period) for which Landlord has exercised any of its remedies under Article 20 of the Lease,  such abatement shall automatically and permanently cease and, in addition to Landlord’s other remedies, the total amount of Rent previously abated shall become due and payable to Landlord as Additional Rent hereunder.  Except as expressly provided in this Paragraph 3C, Tenant’s obligation to pay Minimum Rental and Tenant’s Pro Rata Share of Real Estate Taxes and Operating Expenses under the Lease is an independent covenant.  During the Abatement Period, only Minimum Rental and Tenant’s Pro Rata Share of Real Estate Taxes and Operating Expenses for the Premises shall be abated, and Tenant shall be obligated to pay any storage rent, parking fees, utility charges or other costs as provided in the Lease.  Unless otherwise agreed by the parties, this abatement provision shall not apply with respect to any further extension or renewal of the Lease Term or any expansion of the Premises.
		

		
			 
		

		
			D.  Paragraph 5.0 of Amendment No. 1 is hereby entirely deleted from the Lease.  Tenant’s Pro Rata Share set forth in the Lease shall be 19.76%, calculated by dividing the rentable square feet in the Premises of 41,016 by the rentable square feet in the Building of 207,598.    Management fees charged as part of Operating Expenses shall be capped at three percent (3%) of the gross rent for the Premises.
		

		
			 
		

		
			4.  Leasehold Improvements.    
		

		
			 
		

		
			A.  The parties shall make the improvements to the Premises as provided in the attached Exhibit 1.  In all other respects, Tenant agrees to accept the Premises on an “AS IS” basis, and Landlord has no obligation to do or pay for any leasehold improvements or plans.  Except as expressly provided in the Initial Lease, Amendment No. 1 or this Amendment, Tenant shall not be entitled to any tenant improvement allowance, leasehold improvements or other work, or any free rent period or other economic incentives that may have been provided to Tenant in connection with entering into the Initial Lease or any prior Amendment.
		

		
			 
		

		
			B.  Provided that Tenant is not in monetary default (beyond any applicable notice and cure period) under the Lease, Landlord shall provide Swing Space (as hereafter defined) to Tenant on the following terms and conditions:
		

		
			 
		

		
			(1)    The Swing Space shall consist of approximately 3,500 to 5,000 rentable square feet of contiguous space at a location in the Building as designated by Landlord.    
		

		
			 
		

		
			(2)  Tenant shall give at least thirty (30) days written notice to Landlord of the  date Tenant will commence construction of the Tenant Improvements (“Construction Commencement Date”).  Landlord shall deliver the Swing Space to Tenant as of the Construction Commencement Date, and Tenant may thereafter occupy the Swing Space for a limited term (“Swing Space Term”) commencing on the Construction Commencement Date and continuing thereafter until the earlier to occur of: (a) Substantial Completion of the Tenant Improvements in the Premises pursuant to the attached Exhibit 1; or (b) August 31, 2019.  
		

		
			

		 

		

			 

		

		

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			(3)    Landlord shall not be liable nor shall the Lease be impaired by any delay or inability to deliver possession of the Swing Space; provided, that if Landlord is unable to deliver possession of the Swing Space to Tenant on or before the Construction Commencement Date, Tenant shall have the right, at its option and as its sole remedy, at any time after the Construction Commencement Date designated by Tenant and before delivery of the Swing Space, to elect to terminate its right to the Swing Space under this Paragraph 4B upon fifteen (15) days’ written notice to Landlord (“Swing Space Termination Notice”), and if the Swing Space is not delivered to Tenant within such fifteen (15) day period, Landlord shall pay the sum of $50,000.00 to Tenant within thirty (30) days after Landlord receives Tenant’s Swing Space Termination Notice, and neither Landlord nor Tenant shall have any further rights or obligations relating to the Swing Space under this Paragraph 4B.  In the event Landlord fails to pay the sum of $50,000.00 to Tenant within such thirty (30) day period, then Tenant may deliver a second notice (an “Offset Notice”) to Landlord that specifies that the Swing Space Termination Notice has been given pursuant to Paragraph 4.B(3) of this Amendment  and the unpaid amount of such $50,000, and that states conspicuously in bold type and in all capital letters at the top of the first page of such Offset Notice: “LANDLORD’S FAILURE TO PAY THE UNPAID AMOUNT OF SUCH $50,000 WITHIN TEN (10) DAYS AFTER RECEIPT OF THIS OFFSET NOTICE SHALL AUTHORIZE TENANT  TO OFFSET SUCH UNPAID AMOUNT AGAINST THE MINIMUM RENTAL NEXT DUE UNDER THE LEASE”, and if Landlord fails to pay such unpaid amount within such ten-day period,  Tenant shall have the right to offset such unpaid amount against its Rent obligation as provided for in Paragraph 3.A. above in an amount not to exceed $50,000.00.
		

		
			 
		

		
			(4)  Tenant shall not be obligated to pay any Minimum Rental or Tenant’s Pro Rata Share of Real Estate Taxes and Operating Expenses with respect to the Swing Space during the Swing Space Term.
		

		
			 
		

		
			(5)  The Swing Space shall be delivered in “AS IS” condition.  Any alterations or improvements, including the installation of telecommunications and computer cabling and equipment, desired by Tenant in the Swing Space shall be subject to Landlord’s prior written consent (not to be unreasonably withheld) and shall be performed at Tenant’s sole expense.      
		

		
			 
		

		
			(6)    Except as otherwise provided in this Paragraph or unless clearly inapplicable, Tenant’s occupancy of the Swing Space shall be on all of the terms and conditions of the Lease, including, without limitation, the insurance and indemnity provisions of the Lease but excluding the payment of rent.  Within ten (10) days after written request by Landlord from time to time, Tenant shall execute a written confirmation concerning the term, location, or any other matter relating to the Swing Space.    
		

		
			 
		

		
			(7)  Upon the expiration or termination of the Swing Space Term, Tenant shall completely vacate and surrender the Swing Space to Landlord in as good condition as when Tenant took possession  (including the removal of any telecommunications and computer cabling and equipment installed by Tenant at Tenant’s expense), ordinary wear and tear excepted.  The expiration or termination of the Swing Space Term shall not terminate or modify the Lease Term with respect to the Premises.  
		

		
			 
		

		
			(8)   If Tenant holds over in the Swing Space after the termination or expiration of the Swing Space Term, in addition to Landlord’s other rights and remedies under the law and the Lease: (a) Tenant shall pay Minimum Rental for the Swing Space at an annual rate of $16.00 per rentable square foot plus Tenant’s Pro Rata Share of Real Estate Taxes and Operating Expenses at the same rate per rentable square foot then payable by Tenant for the Premises, computed on a daily basis for each day Tenant remains in possession of the Swing Space for up to two (2) months after the termination or expiration of the Swing Space Term; and (b) if Tenant holds over in the Swing Space beyond such two (2) additional months, Landlord shall continue to pay such holdover rent but Landlord 

		 

		

			 

		

		

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shall be entitled to immediately and lawfully retake possession of the Swing Space and to recover from Tenant all costs, reasonable attorneys’ fees and damages sustained by Landlord.
		

		
			 
		

		
			(9)  During the Swing Space Term, Landlord reserves the right to have access to the Swing Space upon reasonable prior notice to Tenant to perform its duties and obligations under the Lease and to inspect and show the Swing Space.  If the Swing Space is part of a larger undemised space, Landlord may at any time construct demising walls, doorways and corridors (at Landlord’s sole expense) with respect to the Swing Space and such additional space (including, without limitation, performing any associated demolition, separation, relocation and repair work). Said additional space, which does not constitute the Swing Space, shall be known as the “Non-Swing Space”. Tenant acknowledges that any such construction may be performed during Tenant’s occupancy and normal business hours; and Landlord and Tenant shall cooperate to reasonably minimize any interference with the performance of the construction and Tenant’s use of the Swing Space.  Except as otherwise agreed in writing between the parties, Tenant shall not occupy any portion of any such Non-Swing Space, including, without limitation, use for office purposes or incidental uses such as storage of files or equipment. 
		

		
			 
		

		
			5.  Miscellaneous.
		

		
			 
		

		
			A.   Tenant hereby agrees to use commercially reasonable efforts not to disclose or permit the disclosure of any of the economic terms of this Amendment to any other person or entity without Landlord’s prior written consent (not to be unreasonably withheld, conditioned or delayed), except (1) to Tenant’s owners, officers, directors, employees, agents, affiliates, accountants, auditors, real estate brokers and sales persons, attorneys,  existing or prospective lenders, purchasers, assignees or subtenants, provided the same have a need to know and are under an obligation of confidence concerning such terms, (2) when required by law or court order or when necessary, as determined in the discretion of Tenant, if Tenant or an affiliate is a publicly traded entity, or (3) in an action between the parties to enforce the Lease.
		

		
			 
		

		
			B.    Notwithstanding anything contained in the Lease to the contrary, except as expressly set forth in this Amendment, Tenant has no preferential rights or options under the Lease, including, without limitation, any renewal, extension, expansion, first offer, first refusal, contraction, purchase, termination or any other such rights or options, and any such rights or options previously set forth in the Lease are hereby deleted in their entirety.
		

		
			 
		

		
			C.    Tenant certifies, represents, warrants and covenants that: it is not acting and will not act, directly or indirectly, for or on behalf of any person, group, entity, or nation named by any Executive Order or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or other banned or blocked person, entity, nation or transaction pursuant to any Law that is enforced or administered by the Office of Foreign Assets Control; and it is not engaging in this transaction, directly or indirectly on behalf of, or instigating or facilitating this transaction, directly or indirectly on behalf of, any such person, group, entity or nation.  If requested by Landlord (but not more often than once per calendar year), Tenant agrees to confirm this representation, warranty and covenant in writing.  Tenant hereby agrees to defend, indemnify and hold harmless Landlord from and against any and all claims arising from or related to any such breach of the foregoing certifications, representations, warranties and covenants.
		

		
			 
		

		
			D.    Article 37 of the Initial Lease is hereby deleted from the Lease in its entirety.  Landlord shall continue to license to Tenant approximately 690 square feet of storage space known as storage space LL3 in the Building.  Tenant shall rent the storage space on Landlord’s standard form storage agreement at a monthly gross rental rate of $601.33 during the remaining initial Term, at a monthly gross rental rate of $650.00 during the Option Term, and at Landlord’s prevailing rate for storage space from time to time during any renewal or extension of the Option Term.  If the storage space is terminated at any time, Landlord shall have no further obligation to make the storage space available to Tenant.  Landlord shall provide the storage space in its existing condition, “AS IS”.  Tenant shall at its expense provide any locks or security 

		 

		

			 

		

		

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devices it desires to secure the storage space.    Landlord will use commercially reasonable efforts to provide additional storage space upon request by Tenant, subject to availability.
		

		
			E.    Landlord shall continue to license to Tenant eight (8) Executive Parking Stalls as provided in Paragraph E of Article 14 of the Initial Lease on Landlord’s standard form parking agreement:  four (4) of which shall be provided at no charge to Tenant during the Lease Term, and four (4) of which shall be provided at the current monthly rate for Tenant of $90.00 per stall plus tax, with two percent (2 %) annual increases per stall.        
		

		
			6.    Right of First Offer.    Article 36 of the Initial Lease is hereby entirely deleted from the Lease.  Subject to the provisions of this Paragraph 6, Tenant shall have a right of first offer (“ROFO Right”) for the first floor lounge or for any space contiguous to the Premises on the second and fifth floors of the Building (“ROFO Space”) which is or may become “Available” (hereinafter defined) during the period from the date of this Amendment through the expiration of the Option Term, as follows:
		

		
			 
		

		
			A.  If any ROFO Space is or will become Available during the ROFO Period, then Landlord, before entering into a lease for such space, shall give written notice to Tenant (“Landlord’s ROFO Notice”) stating: (1) the portion of the ROFO Space (“Subject ROFO Space”) which is or will become Available; (2) the estimated date of Availability; and (3) the Minimum Rental for the Subject ROFO Space (which shall be the prevailing net market rental rate for comparable space in the Building for the remaining Option Term, as reasonably determined by Landlord and taking into account the length of the remaining Option Term and the  Prorated Tenant Improvement Allowance for such space as provided below).  To exercise the ROFO Right, Tenant shall give Landlord written notice of exercise within ten (10) days after Landlord’s ROFO Notice is given.  Landlord’s ROFO Notice will not be delivered to Tenant more than one hundred eighty (180) days prior to the date upon which the Landlord expects the Subject ROFO Space to become Available.  Tenant may exercise the ROFO Right only as to all of the Subject ROFO Space.    Time is of the essence with respect to Tenant’s notice of exercise.
		

		
			 
		

		
			B.  If Tenant exercises the ROFO Right, the Subject ROFO Space shall be added to and become part of the Premises on all of the terms and conditions of the Lease, except that:
		

		
			 
		

		
			(1)  The Subject ROFO Space shall be added to the Premises effective on the earlier of (the “ROFO Space Commencement Date”): (a) the date Tenant occupies the Subject ROFO Space for the conduct of any business, or (b) sixty (60) days after the date on which Landlord makes the Subject ROFO Space available for the commencement of Tenant’s leasehold improvements, if any.  Landlord shall not be liable nor shall the Lease be impaired for any delay or inability to deliver the Subject ROFO Space for reasons beyond Landlord’s control. 
		

		
			 
		

		
			(2)  Commencing on the ROFO Space Commencement Date and continuing during the remaining Option Term, Tenant shall pay (a) Minimum Rental for the Subject ROFO Space at the rate specified in Landlord’s ROFO Notice; and (b) Tenant’s Pro Rata Share of Real Estate Taxes and Operating Expenses for the Subject ROFO Space at the same rate per rentable square foot as payable for the Premises and subject to the same adjustments as provided in the Lease.
		

		
			 
		

		
			(3)  Except for the Prorated Tenant Improvement Allowance provided for below), the Subject ROFO Space shall be delivered in an “AS IS” condition, with no obligation for Landlord to do or pay for any improvements or plans.  Following delivery of the Subject ROFO Space by Landlord, Tenant shall have access to such space for the purpose of constructing leasehold improvements and moving its furniture and equipment into the space at no charge for Minimum Rental or Tenant’s Pro Rata Share of Real Estate Taxes 

		 

		

			 

		

		

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and Operating Expenses prior to the ROFO Space Commencement Date; provided, that any such access shall otherwise be subject to the terms and conditions of the Lease, and any improvements shall be subject to the requirements of  Paragraphs 3 through 9 of the attached Exhibit 1.  Tenant shall not be entitled to any additional free rent or rent abatement period but Tenant shall be entitled to a “Prorated Tenant Improvement Allowance” for the Subject ROFO Space determined by multiplying $52.00 per square foot in the Subject ROFO Space by a fraction, the numerator of which is the number of full calendar months remaining in the Option Term as of the ROFO Space Commencement Date (not to exceed 124) and the denominator of which is 124. 
		

		
			 
		

		
			(4)  The Subject ROFO Space shall be added to the Premises for the remaining Term of the Lease (including any renewals or extensions), but not for less than three (3) years.
		

		
			 
		

		
			If Tenant fails to timely exercise the ROFO Right with respect to the Subject ROFO Space, the ROFO Right shall automatically terminate with respect to such space, Landlord shall be free to lease or grant any rights to such space on any terms, and Tenant shall have no further rights thereto.  The ROFO Right shall continue during the ROFO Period as to any remaining ROFO Space on which such right has not terminated.
		

		
			 
		

		
			C.  Tenant’s ROFO Right is personal to Tenant and is not transferable.  In event Tenant has an active sublease or assignment at the time the ROFO Right becomes effective, the ROFO Right contained in this Paragraph 6 shall automatically terminate and thereafter be null and void.  Further, Tenant shall have no right to exercise its ROFO Right, notwithstanding any provision in this Paragraph 6 to the contrary,  (i) during the period of time commencing on the date after a monetary obligation to Landlord is due from Tenant and unpaid (without any necessity for notice thereof to Tenant) and continuing until the obligation is paid, or (ii) in the event that Landlord has given to Tenant three or more notices of monetary default whether or not the defaults are cured, during the 12-month period of time immediately prior to the time that Tenant attempts to exercise the ROFO Right.
		

		
			 
		

		
			D.    Landlord and Tenant confirm that Tenant’s ROFO Right is not subject to any rights U.S. Energy Services, Inc. or its successors may have pursuant to any previous rights in favor of U.S. Energy Services, Inc. including that certain lease dated March, 2007.  For purposes of this Paragraph  6, space shall be deemed “Available” when the same becomes available for leasing, as reasonably determined by Landlord, upon the expiration or termination of the following (“Prior Rights”): all leases (including, without limitation, all renewals or extensions of any lease, whether pursuant to an option or right in the lease or an agreement hereafter entered into with Landlord; all options or rights thereunder; and all amendments or assignments thereof or subleases thereunder), rights, options, and agreements existing as of the date of full execution of this Amendment.  Notwithstanding anything to the contrary contained herein, the ROFO Right shall exclude and shall be subject and subordinate in all respects to all Prior Rights.
		

		
			 
		

		
			E.  Within thirty (30) days after written request by Landlord, Tenant shall execute and deliver an instrument in form reasonably satisfactory to Landlord and Tenant confirming any exercise or termination of the ROFO Right, but an otherwise valid exercise of the ROFO Right shall be fully effective whether or not such confirming document is executed.
		

		
			 
		

		
			F.  If the  Extension Option is exercised as provided in Paragraph  7 of this Amendment, the Minimum Rental,  Tenant’s Pro Rata Share of Real Estate Taxes and Operating Expenses, and other economic terms for any ROFO Space previously included in the Premises shall be determined as provided in said Paragraph for the balance of the applicable further Option Term.    The ROFO Right shall not apply during any further Option Term.
		

		
			 
		

		
			

		 

		

			 

		

		

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			7.    Extension Option.    Article 35 of the Initial Lease is hereby entirely deleted from the Lease.  Tenant shall have two (2) options  (each an “Extension Option”) to extend the Lease for a period of five (5) years each (the “Second Option Term” or the “Third Option Term”) commencing immediately after the expiration of the previous Option Term, as follows: 
		

		
			 
		

		
			A.  To exercise an Extension Option, Tenant shall give written notice of exercise to Landlord not less than nine (9) calendar months prior to the expiration of the Option Term or Second Option Term, as the case may be.  Thereafter, not less than eight (8) calendar months prior to the expiration of the Option Term or Second Option Term, Landlord shall give written notice to Tenant of Landlord’s reasonable determination of the Minimum Rental for the Premises for the Second Option Term or the Third Option Term as the case may be (based on the then-prevailing net market rental rate for comparable space in the Building for the Second Option Term (or the Third Option Term).    Tenant’s notice of exercise of an Extension Option and Landlord’s determination of the Minimum Rental shall be binding and irrevocable unless Tenant shall, at Tenant’s option, give Landlord written notice of the withdrawal of Tenant’s notice of exercise of an Extension Option within twenty (20) days after Landlord’s notice of the Minimum Rental is given.  Time is of the essence with respect to Tenant’s notices.
		

		
			 
		

		
			B.  The Extension Options granted to Tenant are personal to the original Tenant and may be exercised only by the original Tenant while occupying the Premises, who does so without the intent of thereafter assigning this Lease or subletting the Premises or any portion thereof, and may not be exercised or be assigned, voluntarily or involuntarily, by or to any person or entity other than Tenant.
		

		
			 
		

		
			C. Tenant shall have no right to exercise an Extension Option, notwithstanding any provision in the grant of the Extension Options to the contrary, (i) during the period of time commencing on the date after a monetary obligation to Landlord is due from Tenant and unpaid (without any necessity for notice thereof to Tenant) and continuing until the obligation is paid, or (ii) in the event that Landlord has given to Tenant three or more notices of monetary default whether or not the defaults are cured, during the 12-month period of time immediately  prior to the time that Tenant attempts to exercise the subject Extension Option.    Tenant shall have no Extension Option beyond the expiration of the Third Option Term.
		

		
			 
		

		
			D.  Within thirty (30) days after written request by Landlord, Tenant shall execute and deliver a document in form reasonably satisfactory to Landlord confirming any exercise or termination of an Extension Option, but an otherwise valid exercise of an Extension Option shall be fully effective whether or not such confirming document is executed.
		

		
			 
		

		
			8.    Tenant Representations.  Tenant hereby represents to Landlord that there has been no assignment of Tenant’s interest under the Lease and no sublease of all or any portion of the Premises by Tenant requiring Landlord’s consent that has not been obtained, there are no existing defenses, claims or offsets which Tenant has against the enforcement of the Lease or Landlord, and Landlord and Tenant are not currently in default under the Lease.
		

		
			 
		

		
			9.  Brokers.  Landlord and Tenant each represents that it has not engaged or dealt with any real estate broker, agent or finder with respect to this Amendment, except for CBRE, Inc.  (representing Landlord and whose commission, if any, shall be paid by Landlord pursuant to a separate written agreement) and Cushman & Wakefield (representing Tenant and whose commission, if any, shall be paid by Landlord pursuant to a separate written agreement).    Landlord and Tenant shall indemnify and hold each other harmless from all claims, liability or expense (including reasonable attorneys’ fees) in connection with any claim for broker’s, finder’s or other fees or commissions by any other person or entity as a result of such party’s actions or alleged actions.
		

		
			 
		

		
			

		 

		

			 

		

		

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			10.  Landlord’s Lien Subordination Agreement. Landlord agrees that at any time during the Term of the Current Lease, as amended by this Amendment, Landlord shall, within fifteen (15) business days after request by Tenant from time to time, execute and deliver a commercially reasonable Landlord’s Lien Subordination Agreement, or similar instrument, in favor of Tenant’s lender(s), subordinating any lien rights of Landlord in Tenant’s furniture, trade fixtures, and other personal property to the rights of Tenant’s lender(s).
		

		
			 
		

		
			11.  Entire Agreement.  The Lease and this Amendment and all exhibits which are attached hereto and hereby incorporated by reference, constitutes the entire agreement between Landlord and Tenant with respect to the subject matter hereof, and may not be amended or modified except in a writing signed by Landlord and Tenant.  Tenant acknowledges that it has not been induced to enter into this Amendment by any agreements or representations which are not set forth in this Amendment.  This Amendment shall not be effective until execution and delivery by both Landlord and Tenant.  This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same document. 
		

		
			 
		

		
			By signing this Amendment, the parties agree to the above terms.
		

		
			 
		

		
			 
		

			
					
						 

					
						 

					
						 

					
						 

					
						G&I VIII Investment 605 Waterford LLC, 

					
						a Delaware limited liability company,

					
						its sole member

					
						 

					
						 

					
						By:  _____________________________

					
						        Name:________________________

					
						        Title:_________________________

					
						 

					
					
						 

					
						,

					
						 

					
						 

					
						 

					
						 

					
						:  _____________________________

					
						 

					
						 

					
						 

				
	
					
						LANDLORD:

					
						 

					
						G&I VIII 605 WATERFORD LLC,

					
						a Delaware limited liability company,

					
						 

					
						By:  G&I VIII Investment 605 Waterford LLC, 

					
						        a Delaware limited liability company,

					
						        its sole member

					
					
						TENANT:

					
						 

					
						WINMARK CORPORATION,

					
						a Minnesota corporation

					
						 

					
						 

					
						 

					
						 

				

			
					
						 

					
					
						By:

					
					
						/s/ Anthony D. Ishaug

				
	
					
						 

					
					
						 Name:

					
					
						Anthony D. Ishaug

				
	
					
						 

					
					
						 Title:

					
					
						Chief Financial Officer and Treasurer

				

			
					
						 

					
						 

					
					
						 

				

			
					
						By:

					
					
						/s/ Valla Brown

				
	
					
						 Name:

					
					
						Valla Brown

				
	
					
						 Title:

					
					
						Vice President

				

			
					
						 

					
					
						 

				

		
			 
		

		
			

		 

		

			 

		

		

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			EXHIBIT 1
		

		
			TO LEASE AMENDING AGREEMENT NO. 2
		

		
			 
		

		
			LEASEHOLD IMPROVEMENTS
		

		
			(ALLOWANCE-TW)
		

		
			 
		

		
			This Exhibit shall be incorporated into and considered as a part of the attached Amendment (“Amendment”).  Unless otherwise indicated herein, capitalized terms used in this Exhibit shall have the meanings assigned to them in the Lease.  The terms and provisions of this Exhibit are intended to supplement and are specifically subject to all the terms and provisions of the Current Lease and the Amendment. Except as otherwise set forth herein, wherever the consent or approval of either Landlord or Tenant is required by the provisions of this Exhibit, such party shall not unreasonably withhold, condition or delay such consent or approval.
		

		
			1.  Condition of Premises.  Except as expressly provided in the Current Lease and the Amendment, including this Exhibit, Tenant agrees to accept the Premises in its present condition, “AS IS,” with no obligation for Landlord to do or pay for any improvements or plans. 
		

		
			 
		

		
			2.  Tenant Improvement Allowance and Costs.     So long as Tenant is not in default under the Current Lease, the Amendment  or this Exhibit (beyond any applicable notice and cure period), Landlord shall provide a one-time allowance (“Tenant Improvement Allowance”) not to exceed $52.00 per rentable square foot (total $2,132,832.00 based on 41,016 rentable square feet) to be applied toward the actual total costs (“Tenant Improvement Costs”) of constructing Tenant’s leasehold improvements in the Premises (“Tenant Improvements”),  including, without limitation, reasonable and customary fees for: space planning and design fees; architectural and engineering fees; required building permits; cost of labor, materials, equipment and services; cost of Tenant signage; and the costs of removing, modifying, relocating or making additions to any existing improvements to accommodate Tenant’s space plan. 
		

		
			 
		

		
			Notwithstanding anything to the contrary contained herein:
		

		
			 
		

		
			(1) So long as Tenant is not in default under the Lease, up to $23.00 per rentable square foot in the Premises (total $943,368.00 based on 41,016 rentable square feet) of the otherwise unused Tenant Improvement Allowance may be applied, at Tenant’s option by written request to Landlord, toward the reasonable, out-of-pocket miscellaneous costs paid by Tenant to third parties for telecommunications and computer cabling and equipment (including cell phone boosters), furniture, fixtures, equipment, moving costs or any other business related expenses as determined in Tenant’s discretion (such miscellaneous costs shall be paid or reimbursed by Landlord within thirty (30) days following receipt by Landlord of Tenant’s written request therefor).
		

		
			 
		

		
			(2)  In addition to the Tenant Improvement Allowance, Landlord shall reimburse Tenant’s architect for the cost of a preliminary space plan for the Premises.  Landlord has a separate agreement with Tenant’s architect for such costs.
		

		
			 
		

		
			(3)    Any unused balance of the Tenant Improvement Allowance shall automatically terminate and expire as of August 31, 2019. 
		

		
			 
		

		
			3.  Plans.  Prior to the commencement of any work, Tenant shall cause the architect or space planner selected by Tenant and approved by Landlord (“Planner”) to prepare and deliver to Landlord an initial plan (“Initial Plan”) for the Tenant Improvements in the Premises.  The Initial Plan shall clearly identify and locate any new, special or major requirements of Tenant, including, without limitation:
		

		
			 
		

		
			(a)  Any requirements of Tenant which are in excess of or otherwise vary in any respect from Building standard items, all modifications to any existing  improvements in the space, and all critical dimensions.
		

		
			 
		

		
			(b)  Special loading, such as the location of and requirements for file cabinets or special equipment.
		

		
			 
		

		
			(c)  Openings in the walls or floors.
		

		
			

		 

		

			 

		

		

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			(d)  Special heating, ventilating, air conditioning, electrical, sprinkler, lighting, security system, or plumbing work.
		

		
			 
		

		
			(e)  Location and dimensions of telephone, computer and communications areas, and location of telephone, computer, communications and electrical panels, cabling and outlets, and electrical switches and lights.
		

		
			 
		

		
			(f)  Partitions - locations and type, including doors and hardware, windows, glass partitions and special framing or support.
		

		
			 
		

		
			(g)  Special cabinet work and other millwork items.
		

		
			 
		

		
			(h)  Variations to standard ceiling heights.
		

		
			 
		

		
			(i)  Location, selection and color selection, as applicable, of painted areas, floor coverings, and wall coverings.
		

		
			 
		

		
			(j)  Location and type of any kitchen equipment. 
		

		
			 
		

		
			(k)  Location, dimensions and description of any modifications to the Building corridors.  
		

		
			 
		

		
			(l)  Such additional information as reasonably specified by Landlord.  
		

		
			 
		

		
			Within ten (10) business days after receipt of the Initial Plan, Landlord shall either approve the Initial Plan or notify Tenant and the Planner in writing of the reasons Landlord does not approve it.  Tenant shall cause the Planner to correct any matter on the Initial Plan which Landlord does not approve and to resubmit the corrected Initial Plan to Landlord within five (5) business days (in which case Landlord shall have five (5) business days to review the corrected Initial Plan and to notify Tenant of any disapproval), and this process shall continue until the Initial Plan is approved by Landlord and Tenant.
		

		
			 
		

		
			Following Landlord’s approval of the Initial Plan, Tenant shall promptly cause the Planner to prepare and deliver to Landlord architectural and engineering plans, specifications and working drawings (hereafter called “Construction Plans”) for the Tenant Improvements shown on the Initial Plan.  The Construction Plans shall consist of complete sets of plans and specifications in the form of working drawings or construction drawings identifying Tenant’s interior layout of the Premises, including, as necessary, complete sets of detailed architectural, structural, mechanical, electrical and plumbing drawings for the Tenant Improvements in compliance with applicable laws ordinances, regulations and order (“Laws”).  The Construction Plans shall be prepared by architects and engineers licensed in the State of Minnesota and shall include such written instructions or specifications as may be necessary to secure any building permit or other governmental permits or approvals.  The Planner shall be responsible for reviewing Landlord’s Building plans and Building standards and, as necessary, field verifying all building dimensions and site conditions in connection with such plans.  The Construction Plans and the Tenant Improvements shall conform to Landlord’s architectural, engineering and design criteria for the Building, and all applicable Laws.  All roof penetrations, structural modifications, material revisions to the mechanical, HVAC or electrical systems of the Building, or work affecting portions of the Building outside the Premises or under warranty shall be specifically reviewed and approved by an architect and/or engineer designated by Landlord and shall performed only by contractors approved by Landlord.
		

		
			 
		

		
			Within fifteen (15) business days after the completed Construction Plans have been submitted to Landlord, Landlord shall provide written approval of such Construction Plans (or written disapproval with a written explanation of any changes required therein) and shall redeliver the Construction Plans to Tenant.  Tenant shall cause the Planner to correct any matter on the Construction Plans which Landlord does not approve and to resubmit the corrected Construction Plans to Landlord within seven (7) business days (in which case Landlord shall have seven (7) business days to review the corrected Construction Plans and to notify Tenant of any disapproval), and this process shall continue until the Construction Plans are approved by Landlord and Tenant.  Landlord’s representative or architect shall, upon request from Tenant, meet with Tenant at the Building to discuss and resolve all alleged deficiencies in the Construction Plans and solutions to any problems.  As used in this Exhibit, “Plans” means and includes the Initial 

		 

		

			 

		

		

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Plan, the Construction Plans and any supplemental plans and specifications approved by the parties.  Unless otherwise specified in the Plans, the Tenant Improvements shall be constructed with Building standard materials (or comparable substitute materials reasonably approved by Landlord in amount, type and quality); and Tenant shall promptly make any necessary selections.  Landlord may make or require changes in the Tenant Improvements or Building standards, the necessity or desirability of which hereafter becomes apparent, upon prior written notice to Tenant for nonsubstantial changes and with the approval of Tenant (not to be unreasonably withheld, conditioned or delayed) for substantial changes.  All costs and expenses relating to the preparation or review of the Plans, and any changes thereto or revisions thereof, shall be included in the Tenant Improvement Costs and shall be paid as provided in this Exhibit.    
		

		
			          
		

		
			Landlord may withhold its approval of any plans or specifications if, in Landlord’s reasonable opinion, the work would: involve a structural revision to the Building; adversely affect the market value or appearance of the Building; violate Landlord’s criteria for those portions of the Premises which are visible from the common areas or from the exterior of the Building; adversely affect the strength, structural integrity or safety of the Building; adversely affect the proper functioning and efficiency of the systems of the Building; fail to improve the entire Premises with materials that equal or exceed Building standards and improvements consistent with the nature and quality of the Building; violate any requirements of applicable Laws or of any holder of a mortgage on or insurer of the Building (or require Landlord to perform any work or incur any expense in connection therewith); adversely affect any other rentable space in the Building or increase the expense of operating the Building; not be in keeping with the character of the Building; use non-Building standard materials or cause additional cost to Landlord upon the expiration or termination of the Lease; or not comply with Landlord’s written  Construction Rules for the Building as set forth in the attached Exhibit 2.  Landlord’s approval shall be required regarding the demolition, salvage, reuse and final disposition of any current improvements, equipment or material not used in the Tenant Improvements.  Landlord may disapprove any plans in part, reserve approval of any items pending its review and approval of other plans, and condition its approval upon Tenant making revisions to the plans or supplying additional information.  Any review or approval of any plans or work by Landlord is solely for its benefit, and without any representation, warranty or liability to Tenant or any other person with respect to the adequacy, correctness or sufficiency thereof, the fitness for any purpose, compliance with applicable Laws or otherwise.  Tenant acknowledges that neither Landlord nor its property manager is an architect or engineer, and that the Tenant Improvements will be designed and performed by independent architects, engineers and contractors selected by Tenant.  Landlord and its property manager shall have no responsibility for construction means, methods or techniques or safety precautions in connection with the Tenant Improvements, and do not guarantee that the Plans or Tenant Improvements will be free from errors, omissions or defects, and shall have no liability therefor.  Tenant shall cause the Planner to provide to Landlord “as built” drawings for the Tenant Improvements in the form approved by Landlord no later than thirty (30) days after completion of the Tenant Improvements.
		

		
			 
		

		
			Tenant shall be responsible for matters under any applicable Laws pertaining to persons with disabilities relating to the Tenant Improvements and/or to the Premises or the Building as a result of the Tenant Improvements hereunder.  Without limiting the generality of the forgoing, Tenant shall: (i) provide complete and accurate information such that the Plans will comply with applicable Laws, and update such information as needed, and (ii) be responsible for any changes to the Tenant Improvements and/or to the Building as a result of the Tenant Improvements and applicable Laws. 
		

		
			 
		

		
			4.  Payment.    Landlord shall pay an amount not to exceed the Tenant Improvement Allowance toward the Tenant Improvement Costs for the Tenant Improvements.  The Tenant Improvement Allowance shall be disbursed by Landlord in installments, not more frequently than monthly, within forty-five (45) days after receipt of an application for a progress payment for completed work, sworn construction statement and lien waivers by the Contractor (defined below), subcontractors and suppliers, and such other documentation as Landlord may reasonably require to confirm that the Tenant Improvement Costs have been (or will from such draw be) paid for and that no mechanics’ or other such liens have been or may be filed against the Building arising out of the design or performance of the Tenant Improvements.  Such progress payments shall be made according to the schedule of payments set forth in the Construction Documents (as defined below) and shall be subject to a five percent (5%) retainage, plus a reasonable retainage for any incomplete or defective work or any existing default of Tenant or the Contractor.  For funds disbursed to third parties engaged by Tenant, Landlord may, in its reasonable discretion, issue checks jointly to Tenant and any such third party, its subcontractors and suppliers.
		

		
			 
		

		
			Tenant shall be solely responsible for all Tenant Improvement Costs or other costs of construction in excess 

		 

		

			 

		

		

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of the Tenant Improvement Allowance, or the portion thereof payable by Landlord under the terms of this Exhibit (“Excess Costs”).  Within seven (7) business days after approval by the parties of the final Construction Plans and the Construction Documents, Tenant shall pay to Landlord the estimated amount of any Excess Costs, to be held and disbursed in the same manner as the Tenant Improvement Allowance.  The entire unpaid balance of any Excess Costs for the Tenant Improvements shall be paid by Tenant when due, but in all events within thirty (30) days after Substantial Completion of the Tenant Improvements.
		

		
			 
		

		
			 
		

		
			5.  Tenant Improvements.    
		

		
			 
		

		
			 (a)  Following approval of the final Construction Plans by Landlord and Tenant, the Tenant Improvements shall be submitted for bids, according to procedures approved by the parties, by one or more qualified general contractors and by qualified subcontractors selected by Tenant and approved by Landlord.  Landlord’s approval of the general contractor to perform the Tenant Improvements (“Contractor”) shall be conditioned upon Landlord obtaining reasonable assurances that the contractor shall:  (i) perform and complete the work on time and without unreasonable interference with the operation of the Building and any other construction occurring in the Building; (ii) comply with all rules and regulations relating to construction activities in the Building as may be reasonably prescribed from time to time by Landlord; (iii) maintain such insurance as set forth  below or any additional insurance required by applicable law; (iv) comply with Landlord’s reasonable requirements as to the terms and conditions for all contractor items relating to conducting its work, use of facilities and utilities, storage of materials, and access to the Premises; (v) provide a minimum one-year warranty to Landlord and Tenant (with an assignment to Landlord and Tenant of any manufacturer or supplier warranties in excess of one year) that the work shall comply with the plans and specifications and be constructed in a good and workmanlike manner with a quality equal to or better than Building standard; (vi) perform all work in a fashion and by such means as necessary to work in harmony and not unreasonably interfere with Landlord’s contractors or other tenants and their contractors, and to avoid any labor stoppages or strikes, and to ensure good labor relationships and compliance with all applicable labor agreements (including, without limitation, using union labor and contractors to perform such work if requested by Landlord); (vii) provide for the customary retention from payments to subcontractors; (viii) provide for the furnishing of contractors’ affidavits and full and final mechanic’s lien waivers covering all labor and materials relating to the work; and (ix) the Contractor, subcontractors and all materialmen, laborers and other parties furnishing any labor, materials, equipment or services with respect to any portion of the Tenant Improvements will look solely to Tenant for payment for the same  .  Such requirements of Landlord and the terms of this Exhibit shall be set forth in the bid documents.  The Tenant Improvements shall be performed on the basis of a “stipulated sum” or “guaranteed maximum cost” contract signed by Tenant and approved by Landlord (“Construction Agreement”), which shall provide that Landlord is a third party beneficiary thereof.  
		

		
			 
		

		
			(b)  Promptly after receiving bids on the Tenant Improvements, Tenant shall submit to Landlord the names of the proposed Contractor and all subcontractors which will perform the Tenant Improvements, together with the proposed Construction Agreement, final Construction Plans and any General or Special Conditions (“Construction Documents”) for approval by Landlord.
		

		
			 
		

		
			(c)  Within seven (7) business days after Landlord receives the Construction Documents, Landlord shall either approve the Construction Documents and the proposed Contractor and subcontractors, or notify Tenant in writing in detail of the reasons Landlord does not approve them.  Tenant shall promptly correct any matter in the Construction Documents which Landlord does not approve, and shall resubmit the Construction Documents in the same manner until the same are approved by Landlord.    
		

		
			 
		

		
			(d)    Landlord may post statutory notices of non-responsibility for mechanics’ liens conspicuously on the Premises, and Tenant and the Contractor shall cooperate to maintain the posting of such notices.  
		

		
			 
		

		
			(e)  Before the commencement of the Tenant Improvements, Tenant shall deliver to Landlord (i) a final copy of the approved and signed Construction Documents; (ii) copies of all required building permits, approvals and licenses; (iii) certificates of all insurance required of Tenant, the Contractor and subcontractors; and (iv) the estimated amount of any Excess Costs.
		

		
			 
		

		
			(f)  No material change in the Tenant Improvements, the cost of the Tenant Improvements, or the Construction Documents shall be made after Landlord’s approval of the Construction Documents except by a written 

		 

		

			 

		

		

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change order signed by Tenant and approved by Landlord (“Change Order”); and in any such case, Tenant shall pay to Landlord any increased estimated amount of Excess Costs before the commencement of any work under such Change Order.  If Tenant shall desire any Change Order after approval of the Plans by Landlord, Tenant shall submit a detailed written request or revised Plans to Landlord for approval.  If reasonable and practicable and consistent with the Plans theretofore approved, Landlord shall not unreasonably withhold, condition, or delay approval of the Change Order.  All costs in connection therewith, including, without limitation, construction costs, permit fees, and preparation or review of any additional Plans or other studies or tests, or revisions of such existing items, shall be included in the Tenant Improvement Costs.
		

		
			 
		

		
			Notwithstanding anything to the contrary herein, in the event that any applicable governmental authority requires material changes to the Tenant Improvements (“'Required Changes”), (i) the parties shall reasonably consult concerning the nature and cost of such Required Changes, and (ii) all costs in connection with the Required Changes shall be included in the Tenant Improvement Costs.
		

		
			 
		

		
			(g)  Landlord shall engage CBRE, Inc. or another party of its choice to coordinate the Tenant Improvements for a coordination fee of one and one-half percent (1-1/2 %) of the actual costs incurred for the work.      Such coordination fee is based on Tenant’s Planner, BDH+Young, and/or Tenant’s Contractor, Gardner Builders, performing customary project management services with respect to the Tenant Improvements.    Such coordination fee shall be charged to and paid as part of the Tenant Improvement Costs.    No additional charges shall be made by Landlord for supervision, parking, utilities, freight elevators, or other Building services during construction; provided that the construction rules for the Building shall apply and be complied with at all times. 
		

		
			 
		

		
			6.  Performance of Work.
		

		
			 
		

		
			(a)  Following approval of the Construction Documents by Landlord, the Contractor shall obtain a building permit and, subject to the other terms and conditions of this Exhibit and the Lease, shall cause the Tenant Improvements to be Substantially Completed according to the construction schedule approved by the parties in the Construction Documents.  Tenant acknowledges that the work will be performed during Tenant’s occupancy of the Premises; and Landlord and Tenant shall cooperate to reasonably minimize any interference with the performance of the work and Tenant’s use of the Premises.  Tenant shall be solely responsible for any injury, loss or damage which may occur to any of the property of Tenant, its agents, employees and contractors, in or about the Premises during the construction period.
		

		
			 
		

		
			(b)  Tenant shall indemnify, defend and hold harmless Landlord and the Building from and against all losses, damages, costs (including costs of suit and reasonable attorney’s fees), liabilities, or causes of action arising out of or relating to the Tenant Improvements, including, without limitation, mechanics’ liens or other liens or claims (and all costs or expenses associated therewith) asserted, filed or arising out of any such work, and all damage caused by the Contractor, its subcontractors or their employees.
		

		
			 
		

		
			(c)  All Tenant Improvements shall be performed in a safe, first-class and workmanlike manner in conformity with the approved Construction Plans and all applicable Laws and insurance requirements, and Tenant and the Contractor shall avoid interference with other occupants and the efficient, safe and secure operation of the Building.  Tenant, the Contractor, subcontractors and suppliers, and their respective employees, agents and independent contractors, shall comply with Landlord’s construction rules for the Building and the general rules of the Building in connection with all aspects of the Tenant Improvements and all related construction activities, including, without limitation, the following: the delivery, moving or removal of materials, equipment, and debris shall be performed at such times, in such locations and using such procedures as reasonably designated by Landlord; all debris and rubbish caused by or resulting from the construction shall be removed and disposed of at least once a week, or more frequently as Landlord may reasonably direct; only freight elevators may be used for the delivery, moving and removal of materials, equipment and debris; core drilling may only be performed during such hours and on such days as reasonably directed by Landlord and only with such advance notice and such procedures as permits Landlord to approve the location and scope of such drilling and to inspect for resulting structural damage; demolition may only be performed during such hours and on such days as reasonably directed by Landlord based on the nature of the activity; all construction activities in the Premises must be controlled to minimize noise and prevent dirt, dust, odors, fumes or other matter from infiltrating into adjacent tenant or mechanical areas; all employees, agents and independent contractors of the Contractor, subcontractors and suppliers shall park only in areas designated by Landlord.  Landlord 

		 

		

			 

		

		

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may impose reasonable additional requirements from time to time in order to ensure that the Tenant Improvements does not materially disturb or interfere with any other tenants of the Building, or their visitors, contractors or agents, nor interfere with the efficient, safe and secure operation of the Building.  In the event that the Contractor or any subcontractor fails to comply with the terms of this Exhibit, applicable Laws or Landlord’s construction rules for the Building, Landlord reserves the right to refuse to permit construction to commence or to halt construction until such non-compliance is remedied.  In the event of any strikes, picketing, boycott, or other visible labor activities in or about the Premises or Building relating to the Contractor, or any subcontractors, or suppliers, Tenant, upon written request of Landlord and to the extent permitted by applicable Laws, shall immediately cause the applicable Contractor, subcontractor, supplier, employee, agent, or independent contractor to leave the Building until the dispute has been settled.  Landlord shall cooperate with Tenant in connection with the construction of the Tenant Improvements; but Landlord shall have no obligations to Tenant for the completion of the Tenant Improvements and the risk of timely performance of the Tenant Improvements shall be that of Tenant.
		

		
			 
		

		
			(d)  “Substantial Completion” of the Tenant Improvements means (i) completion of all Tenant Improvements in accordance with the Construction Documents, except for minor finishing and punchlist activity which does not materially interfere with use and occupancy of the Premises; (ii) issuance of any necessary governmental approvals and certificates of occupancy; and (iii) removal of all equipment, material and debris which was placed or caused to be placed in or about the Building by Tenant, its Contractor and subcontractors and not incorporated in the Tenant Improvements.
		

		
			 
		

		
			(e)  Upon Substantial Completion of the Tenant Improvements, Tenant shall submit to Landlord a sworn construction statement designating all contractors, subcontractors, suppliers, and others furnishing work and/or materials for the Tenant Improvements, an itemized statement of all costs of construction of the Tenant Improvements, and proof that all such costs have been paid (or will from such payment be paid), including valid lien waivers, in form and substance reasonably satisfactory to Landlord and any lender or title insurer.  
		

		
			 
		

		
			(f)  During construction and upon completion of the Tenant Improvements, Landlord’s representatives or architect may inspect the Tenant Improvements to verify compliance with the Construction Documents.  If so requested by Landlord representatives or architect, Tenant shall notify such representative or architect twenty-four (24) hours before enclosing any wall, floor or ceiling construction to permit inspection.  Within thirty (30) days after Substantial Completion of the Tenant Improvements, the parties shall inspect the Premises, have all systems demonstrated, and prepare a punchlist of incomplete or defective details of the Tenant Improvements.  The Contractor will complete the punchlist items within thirty (30) days after preparation of the punchlist, subject to Force Majeure.  Upon request of either party, Landlord and Tenant shall confirm completion of the work and Tenant’s acceptance of the Premises in written form reasonably acceptable to the parties, unless completion of any work is disputed.  If either party disputes that the work is complete and such dispute cannot be resolved by Landlord and Tenant within thirty (30) days, then such dispute shall be resolved by a Minnesota licensed architect approved by both Landlord and Tenant, or, if the parties cannot agree on an architect, one shall be appointed by the president or chief officer of the Minnesota Chapter of the American Institute of Architects, and the determination of such architect shall be binding upon the parties; and the fees of such architect shall be shared equally by Landlord and Tenant.
		

		
			 
		

		
			7.  Insurance.    During construction of the Tenant Improvements, Tenant shall cause the Contractor to secure and maintain workers’ compensation insurance as required by the law and employer’s liability coverage of at least $1 million bodily injury per accident, $1 million for bodily injury by disease for each employee, and $1 million bodily injury disease aggregate;  all risk builder’s risk insurance for the replacement cost of the applicable tenant improvements or alterations; commercial general liability insurance against loss or liability in connection with bodily injury, death, or property damage or destruction in an amount, with deductibles reasonably approved by Landlord, of not less than $1 million per occurrence limit, $2 million general aggregate limit per location, $2 million personal and advertising limit, $2 million products/completed operations aggregate  (including contractor’s liability coverage, contractual liability coverage, completed operations coverage, broad form property damage coverage, and contractor’s protective liability), with an Excess Limits (Umbrella) Policy in the amount of at least $5 million per occurrence/aggregate; automobile liability insurance on an occurrence basis in an amount of at least $1 million combined single limit covering owned, hired, and nonowned automobiles.  The Contractor’s commercial general liability insurance shall cover claims arising out of: (1) the Contractor’s operations; (2) acts of independent contractors; (3) products/completed operations (with broad form property damage); (4) liability assumed under contract (on a broad form property damage basis); (5) liability assumed under contract (on a broad form blanket basis); and (6) explosion, 

		 

		

			 

		

		

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collapse, and underground damage hazards, when applicable.
		

		
			 
		

		
			8.  Telephones/Wiring.   Tenant shall at its expense install and maintain all telephone and communications wiring and equipment from the service access point in the Building to and within the Premises, and arrange directly with the telecommunications providers approved by Landlord for all service and connections.  The installation of all telephone, communications, computer, security, and other cabling and equipment shall be subject to Landlord’s prior written consent as provided in this Exhibit or in the Lease.  On or before the expiration of the Lease Term, or upon the earlier termination of the Lease or of Tenant’s right to possession of the Premises, Tenant shall, if requested by Landlord, remove all such cabling and equipment installed by or for Tenant at any time.
		

		
			 
		

		
			9.  Miscellaneous.  This Exhibit may not be amended or modified except in a writing signed by Landlord and Tenant.  Time is of the essence of each and every provision of this Exhibit.  In no event shall any rights of Tenant hereunder be transferable or assignable to any party except to a permitted assignee of all of Tenant’s rights under the Lease.  All sums due hereunder from Tenant to Landlord shall be deemed Additional Rent for purposes of the Lease, and upon any default hereunder, Landlord shall have all of the rights and remedies provided for in the Lease as well as all remedies otherwise available to Landlord, including, without limitation, the right to suspend any work or payments provided for hereunder until any such default is cured.  This Exhibit shall not create a contractual relationship of any kind with, nor any rights in favor of, any third party.  Except as otherwise agreed in the Lease or any amendment thereof, this Exhibit shall not apply to any space hereafter added to the Premises nor to any further extension or renewal of the Lease, whether pursuant to any option or right under the Lease or otherwise.
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

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			EXHIBIT 2
		

		
			TO LEASE AMENDING AGREEMENT NO. 2
		

		
			 
		

		
			CONSTRUCTION RULES
		

		
			 
		

		
			1.Notify Property Management office, located in lower level 763-231-0130, before starting any construction or modifications in your suite.  The management office must approve all work and contractors.
		

		
			 
		

		
			2.Insurance certificates are required of all contractors and subcontractors before work begins.  Contact the Property Management office for coverage requirements.
		

		
			 
		

		
			3.Schedule after hour building access and elevator use in advance with Property Management office.  Building hours are 6:00 AM to 6:00 PM.  Security personnel may be required at tenant’s expense.
		

		
			 
		

		
			4.Arrange, in advance, to have spaces and equipment rooms opened.  Regularly used keys can be checked out to the job superintendent for the duration of the project.  Keys for subcontractors and for access other building areas may be checked out from the Property Management office in exchange for a driver's license.
		

		
			 
		

		
			5.Park in remote areas not used by building tenants.    Do not park at the front door or in delivery areas.  See Property Management office for large vehicle parking.  Parking and towing regulations apply to contractor vehicles.
		

		
			 
		

		
			6.Use service entrances and service corridors for personnel and material.  No material will be transported across marble, granite, wood or tile floors without prior approval.  Contractors will be liable for damage.
		

		
			 
		

		
			7.Schedule large deliveries with the Property Management office.  Deliveries that require heavy use of freight elevators or tie up dock areas may need to be scheduled after 3:30 PM or before 8:00 AM.
		

		
			 
		

		
			8.Delivery of long items that require transport on top of elevators should be coordinated with the Property Management office.
		

		
			 
		

		
			9.Schedule and coordinate core drilling and concrete chipping with the Property Management office.  Such work may require X-rays and will need to be done after hours to accommodate current tenants.
		

		
			 
		

		
			10.Welding, sanding, painting, etc., may trip smoke detectors.  Coordinate such work with the Property Management office or Building Engineers.  Detectors may be disabled by Building Engineers during working hours but must be enabled at other times.  (Polymix to be applied after hours)
		

		
			

		 

		

			 

		

		

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			11.Coordinate work that may require the shut down of equipment or services to occupied areas, i.e. electrical service, HVAC or fire protection.
		

		
			 
		

		
			12.When working on sprinkler systems, see Property Management office for proper procedures to prevent false alarms and for notification of central station monitoring.  (All workers must contact management to clear fire panel before leaving.)
		

		
			 
		

		
			13.Contact the Property Management office for check out of owner provided material.  Contractor will be required to move material within the building.
		

		
			 
		

		
			14.Vacant spaces must be kept clean at all times.  Contractors may be charged for clean up in any area common or vacant areas that are not left in clean and "showable" condition.
		

		
			 
		

		
			15.No radios, tape or CD players allowed.  Keep break areas neat, clean, and free of pornographic material.
		

		
			 
		

		
			16.Smoking is prohibited in the building and within 25 feet from all ingress/egress, per code.
		

		
			 
		

		
			17.Be respectful to all occupants of the Property - in our tenant's eyes, you represent CBRE.  Please refrain from using language that would offend our tenants.
		

		
			 
		

		
			18.Do not prop open service elevator lobby doors, hallway doors or any other doors.
		

		
			 
		

		
			19.All keying and rekeying will be coordinated by the Property Management office.
		

		
			 
		

		
			20.Contractor and subcontractors may be required to work with other contractors hired by CBRE or tenant, i.e. phone and security system installers, carpet installers, etc.  Please be considerate.
		

		
			 
		

		
			21.Contractors may only use lower level restrooms.  The restrooms cannot be used for construction cleanup.  If the Contractor does not comply they will be charged for cleanup of restrooms.  A janitor closet is located on each floor with a sink and drain for construction cleanup.
		

		
			 
		

		
			22.Contractor is responsible for removal of all trash from the building.  Do not use building trash containers.  Dispose of all pallets and packaging whether owner or contractor supplied.  See Property Management office for disposal of used or existing material and equipment.
		

		
			 
		

		
			23.Contractor will be required to provide Property Management office with meter numbers of new utility meters, as applicable.
		

		
			 
		

		
			

		 

		

			 

		

		

			2-2

		

		

			 

		

 

		

		
			24.Any work involving loud noise must be scheduled through the management office and be completed prior to 7:00 AM or after 6:00 PM on business days.  This includes hammer-drilling, demolition, etc.
		

		
			 
		

			
	
			
				 25.
			

			
	
			
			Contractors and subcontractors are responsible for supplying their own tools, ladders, carts, vacuums, trash containers, etc.

		
			 
		

			
	
			
				 26.
			

			
	
			
			HVAC balance reports and LEED Waste Facility Alteration Tracking are due within the first week after completion of work.

		
			 
		

			
	
			
				 27.
			

			
	
			
			Electrical contractor to update fire panel label’s as changes are made.

		
			 
		

		
			 
		

		
			I have read and understand the above Rules and Standards.
		

		
			 
		

		
			Name:
		

		
			 
		

		
			Company:
		

		
			 
		

		
			Date:
		

		
			 
		

		 

		

			 

		

		

			2-3EX-10.1

 Exhibit 10.1 

Execution Version 
 THIS RESTRUCTURING
SUPPORT AGREEMENT IS NOT AN OFFER WITH RESPECT TO ANY SECURITIES OR A SOLICITATION OF ACCEPTANCES OF A CHAPTER 11 PLAN WITHIN THE MEANING OF SECTION 1125 OF THE BANKRUPTCY CODE. ANY SUCH OFFER OR SOLICITATION WILL COMPLY WITH ALL APPLICABLE
SECURITIES LAWS AND/OR PROVISIONS OF THE BANKRUPTCY CODE. NOTHING CONTAINED IN THIS RESTRUCTURING SUPPORT AGREEMENT SHALL BE AN ADMISSION OF FACT OR LIABILITY OR, UNTIL THE OCCURRENCE OF THE AGREEMENT EFFECTIVE DATE ON THE TERMS DESCRIBED HEREIN,
DEEMED BINDING ON THE PARTIES HERETO. 
 RESTRUCTURING SUPPORT AGREEMENT 

This RESTRUCTURING SUPPORT AGREEMENT (as amended, supplemented, or otherwise modified from time to time in accordance with the terms hereof,
together with all exhibits attached hereto and incorporated herein, this “Agreement”) is made and entered into as of May 18, 2018, by and among the following: (i) Rex Energy Corporation
(“Rex”), a company incorporated in the State of Delaware, and each of the undersigned direct and indirect subsidiaries of Rex (collectively, with Rex, the “Company” or the
“Debtors”, and each individually, a “Debtor”); (ii) the undersigned persons listed on Exhibit A hereto (the “Consenting Noteholders”) who are beneficial
owners of and/or the investment manager of the beneficial owners of the Company’s 1.00%/8.00% Senior Secured Second Lien Notes due 2020 (collectively, such notes, the “Second Lien Notes”) issued under that certain
Indenture, dated as of March 31, 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Second Lien Notes Indenture”), by and among the Company, the guarantors named therein and Wilmington
Savings Fund Society, FSB, as trustee (the “Indenture Trustee”); (iii) Angelo, Gordon Energy Servicer, LLC (“AGES”), as administrative agent (in such capacity, “Administrative
Agent”) and collateral agent under that certain Term Loan Agreement, dated as of April 28, 2017 (as may be amended, restated, supplemented or otherwise modified from time to time, the “Term Loan
Agreement”), by and among the Company, as borrower, AGES as Administrative Agent and collateral agent, Macquarie Bank Limited, as issuing bank, and the lenders party thereto (the “First Lien Lenders”); and
(iv) the undersigned First Lien Lenders (such lenders, the “Consenting Lenders”). 
 The
Company, Administrative Agent, the Consenting Lenders and the Consenting Noteholders and any subsequent person or entity that becomes a party hereto in accordance with the terms hereof are referred herein as the “Parties” and
individually as a “Party.” Capitalized terms used but not otherwise defined herein have the meanings ascribed to such terms in the term sheet attached hereto as Exhibit B (as the same may be amended,
supplemented, or otherwise modified from time to time in accordance with the terms hereof, together with any exhibits or annexes thereto, the “Restructuring Term Sheet”). 

RECITALS 

WHEREAS, the Parties have engaged in good faith, arm’s length negotiations and agreed to the material terms of certain
transactions and settlements with respect to the obligations of the Company under the Term Loan Agreement and the Second Lien Notes Indenture to be 

  
 1 

 
implemented pursuant to a sale process under Section 363 of the Bankruptcy Code (as defined below) and/or pursuant to a chapter 11 plan of reorganization or liquidation, consummated through
voluntary reorganization cases (the “Cases”) under chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101-1532 (the “Bankruptcy Code”)
in the United States Bankruptcy Court for the Western District of Pennsylvania (the “Bankruptcy Court”) on the terms and conditions set forth in this Agreement and the Restructuring Term Sheet (the “Restructuring
Transaction”); and 
 WHEREAS, the Parties desire to express to each other their mutual support and commitment in
respect of the matters discussed in this Agreement and the Restructuring Term Sheet. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the promises, covenants and agreements contained herein, and for other valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, each Party, intending to be legally bound hereby, agrees as follows: 

Section 1.    Conditions to Effectiveness. This Agreement, and the rights and obligations of the Parties
hereunder, shall become effective and binding on all Parties immediately upon the first date (such date, the “Agreement Effective Date”) that each of the following conditions shall have been satisfied:

 (a)    each Debtor has duly executed and delivered signature pages to this Agreement to counsel to Consenting Lenders
and counsel to the Consenting Noteholders; 
 (b)    the Administrative Agent and Consenting Lenders holding, in the
aggregate 100% of the outstanding principal amount of all outstanding indebtedness under the Term Loan Agreement (such indebtedness, the “First Lien Loans”) have duly executed and delivered signature pages to this Agreement
to counsel to the Company and counsel to the Consenting Noteholders; 
 (c)    Consenting Noteholders who are beneficial
owners of and/or the investment manager of the beneficial owners of, in the aggregate, at least 66 2/3% of the outstanding principal amount of all Second Lien Notes have duly executed and delivered signature pages to this Agreement to counsel to the
Company and counsel to the Consenting Lenders; 
 (d)    all of the reasonable and documented fees and expenses of the
Consenting Noteholders’ advisors (which shall include Akin Gump Strauss Hauer & Feld LLP, Stephens, Inc. and Reed Smith LLP as local counsel) as of the day immediately prior to the date of this Agreement shall have been paid in full;
and 
 (e)    all of the reasonable and documented fees and expenses of the Administrative Agent’s advisors (which
shall include Simpson Thacher & Bartlett LLP, PJT Partners and Duane Morris LLP as local counsel) as of the day immediately prior to the date of this Agreement shall have been paid in full. 

  
 2 

 Section 2.    Exhibits Incorporated by
Reference. Each of the exhibits attached hereto is expressly incorporated herein and made a part of this Agreement, and all references to this Agreement shall include the exhibits hereto. In the event of any inconsistency between this
Agreement and the exhibits attached hereto, this Agreement shall govern. 

Section 3.    Commitments of the Parties to Support the Restructuring Transaction. 

(a)    Consenting Noteholders’ Commitments. Each Consenting Noteholder, severally and not jointly, agrees to
use (and agrees to cause its controlled affiliates and funds, as appropriate, to use), subject to terms and conditions of this Agreement and the Definitive Documentation, commercially reasonable efforts to: 

(1)    (i) support the Restructuring Transaction within the timeframes outlined herein, including
supporting a sale and plan of reorganization/liquidation consistent with the terms described herein and in the Definitive Documentation (such a sale, the “Sale” and such a plan, the “Plan”); (ii) negotiate in
good faith all Definitive Documentation that is subject to negotiation pursuant to this Agreement; (iii) support a key employee retention plan and key employee incentive plan for the Debtors that provides for payments in accordance with the
Initial Budget (as defined below), that, in each case, is reasonably acceptable to the Required Consenting Noteholders,1 the Required Consenting
Lenders2 and the Debtors; and (iv) act in good faith and take (and cause its agents, representatives and employees to take) all actions reasonably necessary or as required by the Bankruptcy
Court to support and achieve consummation of all transactions and implementation steps contemplated in this Agreement and the Restructuring Term Sheet; 

(2)    support and not object to, delay, impede, or take any other action to interfere with the entry of
the orders contemplated by this Agreement, including the DIP Orders (as defined below), and any other order of the Bankruptcy Court reasonably required to implement all transactions and implementation steps contemplated in this Agreement and the
Restructuring Term Sheet; 
 (3)    following receipt of the Solicitation Materials (as defined below),
(i) timely vote any and all of its Claims (as defined in the Bankruptcy Code), including all Claims under the Second Lien Notes Indenture (the “Second Lien Notes Claims”), to accept the Plan by delivering its duly
executed and completed ballots accepting the Plan on a timely basis, (ii) to the extent it is permitted to elect whether to opt out of the releases set forth in the Plan, elect not to opt out of the releases set forth in the Plan by timely
delivering its duly executed and completed ballots indicating such election, and (iii) thereafter, not change or withdraw (or cause to be changed or withdrawn) any such vote or election; and 

 

	1 	As used herein, “Required Consenting Noteholders” means Consenting Noteholders who are beneficial owners of and/or the investment manager of the beneficial owners of more than fifty percent (50%) of the
principal amount of Second Lien Notes outstanding as of the Agreement Effective Date and at least 2/3 in number of the Consenting Noteholders as of the Agreement Effective Date. 

	2 	As used herein, “Required Consenting Lenders” means Consenting Lenders holding 66.67% of the First Lien Loans held by all Consenting Lenders as of the Agreement Effective Date. 

  
 3 

 (4)    support and not object to, delay, impede, or take any
other action to interfere with (and direct the Indenture Trustee to support and not object to, delay, impede or take any other action to interfere with) the acceptance, implementation, or consummation of the Restructuring Transaction (including not
objecting to consummation of a Sale or confirmation and consummation of the Plan) or propose, file, support, or vote for any restructuring, workout, liquidation or chapter 11 plan for any of the Debtors other than the Restructuring Transaction (but
without limiting the consent, approval, or termination rights provided in this Agreement and the Definitive Documentation) ; and 

(5)    oppose (both by filing timely opposition pleadings and orally at any hearings in the Cases) any
actions taken by a third party in opposition to the Restructuring Transactions and the transactions contemplated herein, including approval of the Definitive Documentation. 

(b)    Consenting Lenders’ Commitments. The Administrative Agent and each Consenting Lender,
severally and not jointly, agrees to use, subject to terms and conditions of this Agreement and the Definitive Documentation, commercially reasonable efforts to: 

(1)    (i) support the Restructuring Transaction within the timeframes outlined herein, including
supporting the Sale and Plan consistent with the terms described herein and in the Definitive Documentation; (ii) negotiate in good faith all Definitive Documentation that is subject to negotiation pursuant to this Agreement; (iii) support
a key employee retention plan and key employee incentive plan for the Debtors that provides for payments in accordance with the Initial Budget (as defined below), that, in each case, is reasonably acceptable to the Required Consenting Noteholders,
the Required Consenting Lenders and the Debtors; and (iv) act in good faith and take (and cause its agents, representatives and employees to take) all actions reasonably necessary or as required by the Bankruptcy Court to support and achieve
consummation of all transactions and implementation steps contemplated in this Agreement and the Restructuring Term Sheet; 

(2)    support and not object to, delay, impede, or take any other action to interfere with the entry of
the orders contemplated by this Agreement, including the DIP Orders, and any other order of the Bankruptcy Court reasonably required to implement all transactions and implementation steps contemplated in this Agreement and the Restructuring Term
Sheet; 
 (3)    following receipt of the Solicitation Materials and subject to the terms and conditions
contained in this Agreement and the Definitive Documentation, (i) timely vote or cause to vote any and all of its Claims (as defined in the Bankruptcy Code), including all Claims under the Term Loan Agreement (the “First Lien Term
Loan Claims”), to accept the Plan by delivering its duly executed and completed ballots accepting the Plan on a timely basis, (ii) to the extent it is permitted to elect whether to opt out of the

  
 4 

 
releases set forth in the Plan, elect not to opt out of the releases set forth in the Plan by timely delivering its duly executed and completed ballots indicating such election, and
(iii) thereafter, not change or withdraw (or cause to be changed or withdrawn) any such vote or election; 

(4)    support and not object to, delay, impede, or take any other action to interfere with the acceptance,
implementation, or consummation of the Restructuring Transaction (including not objecting to consummation of a Sale or confirmation and consummation of a Plan) or propose, file, support, or vote for any restructuring, workout, liquidation or chapter
11 plan for any of the Debtors other than the Restructuring Transaction and the Restructuring Term Sheet (but without limiting the consent, approval, or termination rights provided in this Agreement and the Definitive Documentation); and 

(5)    oppose (both by filing timely opposition pleadings and orally at any hearings in the Cases) any
actions taken by a third party in opposition to the Restructuring Transactions and the transactions contemplated herein, including approval of the Definitive Documentation. 

Notwithstanding anything to the contrary herein (but subject to the proviso in subclause (iii) of this paragraph), nothing in this
Agreement shall limit, condition or restrict, in any way, the Consenting Lenders, in their capacities as lenders under the DIP Credit Agreement (as defined below) (in such capacity, “DIP Lenders”), from (i) exercising
any rights and remedies under the DIP Credit Agreement (and any related credit documents, including the DIP Orders), (ii) waiving or forbearing with respect to any Default or Event of Default under and as defined in the DIP Credit Agreement,
(iii) amending, modifying or supplementing the DIP Credit Agreement (or any related credit documents); provided, however, that while the Consenting Lenders remain bound to the obligations set forth in this Section 3(b),
without the consent of the Requisite Consenting Noteholders, the DIP Credit Agreement shall not be amended, modified or supplemented in a manner that conflicts with, or is inconsistent with, the terms and conditions of this Agreement, or
(iv) refusing to make additional advances under the DIP Credit Agreement, in each case, in their sole and absolute discretion and in accordance with the terms of the DIP Credit Agreement (or related credit documents and the DIP Orders). 

(c)    Debtors’ Commitments. The Debtors shall: 

(1)    pay in full and in cash all of the Consenting Lenders’ reasonable and documented fees, costs
and expenses, including all reasonable and documented fees, costs and expenses of the professionals and advisors to the Consenting Lenders specified herein and, thereafter, continue to pay such amounts as they come due; it being understood that, as
of the Agreement Effective Date, the Administrative Agent’s professionals and advisors include (i) Simpson Thacher & Bartlett LLP, (ii) Duane Morris LLP as local counsel and (iii) PJT Partners; 

  
 5 

 (2)    pay in full and in cash all of the Consenting
Noteholders’ and Indenture Trustee’s reasonable and documented fees, costs and expenses, including, all reasonable and documented fees, costs and expenses of the professionals and advisors to the Consenting Noteholders and to the Indenture
Trustee specified herein and, thereafter, continue to pay such amounts as they come due; it being understood that, as of the Agreement Effective Date, the Consenting Noteholders’ professionals and advisors include (i) Akin Gump Strauss
Hauer & Feld LLP, (ii) Stephens, Inc. and (iii) Reed Smith LLP as local counsel, and the Indenture Trustee’s professionals and advisors include Morrison & Foerster LLP; provided that, the Debtors shall not
reimburse such fees, costs and expenses to the extent incurred to challenge the validity, enforceability or priority of the First Lien Term Loan Claims, claims arising under the DIP Credit Agreement and the related security interests, or incurred in
litigating the enforcement of this Agreement against the Consenting Noteholders. 
 (3)    immediately
upon (or prior to) the Agreement Effective Date, deliver to Akin Gump Strauss Hauer & Feld LLP, Stephens, Inc., Simpson Thacher & Bartlett LLP and PJT Partners a preliminary 13-week cash
budget from the Agreement Effective Date and, as soon as practicable following the Agreement Effective Date, but prior to the Petition Date (defined below), agree on a final 13-week cash budget in form and
substance acceptable to the Consenting Noteholders and the Consenting Lenders, in each case subject to their sole discretion (the “Initial Budget”) and (ii) thereafter, comply with the Initial Budget subject to any
variances permitted by the DIP Credit Agreement; provided, however, that any term or line item of the Initial Budget may be revised, amended or waived with the prior written consent of the Debtors, the Required Consenting Noteholders
and the Required Consenting Lenders, which consent shall not be unreasonably withheld, conditioned or delayed; 

(4)    (i) implement a sale process during the Cases in accordance with this Agreement and the Bid
Procedures (as defined below), including adhering to the timeframes outlined herein (including the dates set forth in Section 7(a) and Section 7(b) hereof and in the Restructuring Term Sheet), (ii) support the Restructuring Transaction,
the Restructuring Term Sheet and all other transactions contemplated by this Agreement within the timeframes outlined in this Agreement and (iii) act in good faith and take (and cause their controlled affiliates, and their respective
representatives, agents and employees to take) all actions reasonably necessary, or as may be required by order of the Bankruptcy Court, to support and achieve entry of the orders contemplated by this Agreement, including the DIP Orders, and any
other order of the Bankruptcy Court reasonably required to implement all transactions and implementation steps contemplated in this Agreement and the Restructuring Term Sheet; 

(5)    file on the date on which the Cases commence (such date of commencement of the Cases, the
“Petition Date”) a motion seeking entry of an interim order in the form agreed to by the Parties prior to the Agreement Effective Date (the “Interim DIP Order”) approving a post-petition credit
facility in the form agreed to by the Parties prior to the Agreement Effective Date (as may be amended, supplemented or otherwise modified in accordance with its terms, the “DIP Credit Agreement”) and the use of cash
collateral (the “DIP Motion”); 

  
 6 

 (6)    file on the Petition Date, such “first day”
motions and pleadings reasonably determined by the Debtors, in consultation with counsel to the Consenting Noteholders and the Consenting Lenders, to be necessary (collectively, the “First Day Motions”) and to seek interim
(to the extent necessary) and final orders from the Bankruptcy Court approving such relief; 
 (7)    as
soon as practicable, but in any event no later than fourteen (14) days after the Petition Date, file a motion for entry of an order from the Bankruptcy Court under Section 365 of the Bankruptcy Code and Rule 9019 of the Bankruptcy Rules
approving the assumption of this Agreement, including the settlement contained herein, which motion and order shall be in form and substance reasonably acceptable to the Required Consenting Noteholders and the Required Consenting Lenders (such a
motion, the “Settlement Approval Motion”; and such order, the “Settlement Approval Order”); 

(8)    comply with the milestones set forth in Section 7(a)(1) through Section 7(a)(9) (each, a
“Milestone” and, collectively, the “Milestones”), in each case in accordance with the applicable timeframes referenced in such Milestone; 

(9)    provide, and direct their employees, officers, advisors and other representatives to provide, to the
Consenting Noteholders and the Consenting Lenders and their respective legal and financial advisors (i) reasonable access to the Debtors’ books and records during normal business hours on reasonable advance notice to the Debtors’
representatives and without disruption to the operation of the Debtors’ business, (ii) reasonable access to the management and advisors of the Debtors on reasonable advance notice to such persons and without disruption to the operation of
the Debtors’ business, and (iii) such other information as reasonably requested; 

(10)    provide draft copies of all motions and other pleadings to be filed in the Cases to counsel to each
of the Consenting Noteholders and the Consenting Lenders not less than two (2) Business Days prior to the date when the Company intends to file such document, and consult in good faith with the Consenting Noteholders and the Consenting Lenders
regarding the form and substance of any such proposed filing; provided, however, that in the event that not less than two (2) Business Days’ notice is impossible or impracticable under the circumstances, the Debtors
shall provide draft copies of any motions or other pleadings to counsel to each of the Consenting Noteholders and the Consenting Lenders as soon as otherwise practicable before the date when the Company intends to file any such motion or other
pleading; 
 (11)    use reasonable best efforts to obtain any and all regulatory and/or third party
approvals necessary to consummate the Restructuring Transaction; 
 (12)    not, directly or indirectly,
through any person or entity, take any action that is inconsistent with, or that would reasonably be expected to prevent, interfere with, delay or impede, consummation of the Restructuring Transaction, including, implementation of the sale process
as contemplated in the Sale Motion and the Bid Procedures Order, and solicitation of votes on the Plan, approval of the Disclosure Statement, and the confirmation and consummation of the Plan, or take any other action that would have a material
negative impact upon the Restructuring Transaction; 

  
 7 

 (13)    timely pay all fees and expenses as set forth in
Section 3(c) of this Agreement (subject to the applicable DIP Orders (as defined below)); 

(14)    timely file a formal objection to any motion filed with the Bankruptcy Court by a third party
seeking the entry of an order (i) directing the appointment of a trustee or examiner (with expanded powers beyond those set forth in sections 1106(a)(3) and (4) of the Bankruptcy Code), (ii) converting the Cases to cases under
chapter 7 of the Bankruptcy Code, or (iii) dismissing the Cases; 
 (15)    timely file a formal
objection to any motion filed with the Bankruptcy Court by a third party seeking the entry of an order modifying or terminating the Debtors’ exclusive right to file and/or solicit acceptances of a plan of reorganization, as applicable; and 

(16)    not seek, solicit, or support any dissolution, winding up, liquidation or reorganization,
assignment for the benefit of creditors, merger, transaction, consolidation, business combination, joint venture, partnership, sale of assets, any debt or equity financing or re-financing, recapitalization or
other restructuring of the Debtors (including, for the avoidance of doubt, a transaction premised on an asset sale under section 363 of the Bankruptcy Code) (each, an “Alternative Transaction”), other than the Restructuring
Transaction, or cause or allow any of their agents or representatives to solicit any Alternative Transaction, unless the board of directors of Rex determines, based on the written advice of outside legal counsel and outside financial advisors, in
good faith, and consistent with its fiduciary duties, that (a) such Alternative Transaction would maximize the value of the Debtors’ estates and recoveries to all their stakeholders (taking into account the timing and amount of payment in
respect of the First Lien Claims, the Claims under the DIP Credit Agreement, and the Second Lien Note Claims in connection with the implementation and consummation of such Alternative Transaction), and (b) proceeding with the Restructuring
Transaction (as opposed to such Alternative Transaction) would be inconsistent with the applicable fiduciary duties of the board of directors of Rex. Prior to the earlier of (x) making a public announcement regarding their intention to accept
an Alternative Transaction or (y) entering into a definitive agreement with respect to an Alternative Transaction, the Debtors shall have terminated this Agreement pursuant to Section 7(c)(4). The Debtors shall give counsel to the
Consenting Noteholders and the Administrative Agent not less than five (5) Business Days’ prior written notice before exercising such termination right in accordance with this Agreement. At all times prior to the date on which the Debtors
enter into a definitive agreement in respect of such an Alternative Transaction or make a public announcement regarding their intention to do so, the Debtors shall (x) provide to Akin Gump Strauss Hauer & Feld LLP, Stephens, Inc.,
Simpson Thacher & Bartlett LLP and PJT Partners a copy of any written offer or proposal (and notice and a description of any oral offer or proposal) for such Alternative Transaction within five (5) Business Days of the Debtors’ or
their advisors’ receipt of such offer or proposal and (y) provide such information to Akin Gump Strauss Hauer & Feld LLP, Stephens, Inc., Simpson Thacher & Bartlett LLP 

  
 8 

 
and PJT Partners regarding such discussions (including copies of any materials provided to such parties hereunder) as necessary to keep Akin Gump Strauss Hauer & Feld LLP, Stephens,
Inc., Simpson Thacher & Bartlett LLP and PJT Partners contemporaneously informed as to the status and substance of such discussions. 

Section 4.    Definitive Documentation. The documents, instruments and agreements
governing the Restructuring Transaction (collectively, the “Definitive Documentation”) shall include: (i) the Interim DIP Order, the DIP Credit Agreement and a final order substantially in the form of the Interim DIP Order,
subject to customary changes to reflect a final order and to reflect the “roll up” of First Lien Loans described in the DIP Motion and such other changes reasonably acceptable to the Required Consenting Noteholders and Required Consenting
Lenders (the “Final DIP Order”, together with the Interim DIP Order, the “DIP Orders”); 

(b)    a motion (the “Sale Motion”) seeking entry of (i) an order by the Bankruptcy Court
approving bidding procedures with respect to the Sale consistent with the Restructuring Term Sheet (including a bid deadline (the “Bid Deadline”) no later than one hundred fifteen (115) days after the Petition Date) and
otherwise in form and substance reasonably satisfactory to the Required Consenting Noteholders and Required Consenting Lenders (such an order, the “Bid Procedures Order”; and such bidding procedures, the “Bid
Procedures”) and (ii) an order by the Bankruptcy Court seeking approval of the Sale consistent with the Restructuring Term Sheet and otherwise in form and substance satisfactory to the Required Consenting Noteholders and Required
Consenting Lenders (the “Sale Order”); 
 (c)    (i) the Plan (and all exhibits, annexes and
schedules thereto), which shall be consistent with this Agreement and the Restructuring Term Sheet; (ii) any plan supplement documents; (iii) a disclosure statement in connection with the Plan (the “Disclosure
Statement”), and pleadings in support of approval of the Disclosure Statement; (iv) the solicitation materials in respect of such Plan (the “Solicitation Materials”), and pleadings in support of approval of
the Solicitation Materials; (v) the order of the Bankruptcy Court approving the Disclosure Statement and the Solicitation Materials; and (vi) the order of the Bankruptcy Court confirming the Plan and authorizing all of the transactions and
agreements contemplated by the Plan (and all exhibits, annexes and schedules thereto), including any plan supplement documents (the “Confirmation Order”), which Confirmation Order shall include a waiver of the automatic stay
for effectiveness of the Plan under Rule 3020(e) of the Federal Rules of Bankruptcy Procedure, and pleadings in support of entry of the Confirmation Order; 

(d)    the First Day Motions and related interim and final orders; and 

(e)    the Settlement Approval Motion and the Settlement Approval Order. 

The Definitive Documentation remains subject to negotiation and completion and shall, upon completion, contain terms, conditions,
representations, warranties, and covenants consistent with the terms of this Agreement and the Restructuring Term Sheet and, except where otherwise specified in this Agreement or the Restructuring Term Sheet or agreed to in writing by the Parties,
shall otherwise be in form and substance reasonably acceptable to Debtors, the Consenting Noteholders, the Administrative Agent and the Consenting Lenders. Each Consenting Noteholder and each Debtor agrees that the form of DIP Credit Agreement
delivered to it by 

  
 9 

 
counsel to the Administrative Agent on May 17, 2018 and which the Debtors propose to attach to the Interim DIP Order is in form and substance reasonably acceptable to it for purposes of this
Agreement. 
 Section 5.    Transfers of Claims. 

(a)    Restrictions on Transfers. Each Consenting Lender and Consenting Noteholder, solely as to itself, agrees that
such Consenting Lender or Consenting Noteholder shall not sell, transfer, loan, issue, pledge, hypothecate, assign or otherwise dispose of, directly or indirectly, in whole or in part any ownership (including beneficial ownership) (each, a
“Transfer”) of, any of its Claims against or Interests (as defined in the Bankruptcy Code) in any of the Debtors, including any First Lien Term Loan Claims or Second Lien Notes Claims, or any option thereon or any right or
interest therein (including granting any proxies, depositing any of its Claims or Interests into a voting trust or entering into a voting agreement with respect to any of its Claims or Interests); provided, that, if the transferee
thereof either (i) is a Consenting Lender or a Consenting Noteholder (provided that written notice of such transfer shall be provided to the Debtors and counsel to the Administrative Agent and Consenting Noteholders within two (2) Business
Days after the consummation of such transfer) or (ii) prior to, or contemporaneous with, such Transfer, agrees in writing for the benefit of the Parties to become a Consenting Lender or Consenting Noteholder (as applicable) and to be bound by
all of the terms of this Agreement applicable to a Consenting Lender or Consenting Noteholder (including with respect to any and all Claims and Interests it already may hold against or in the Debtors prior to such Transfer) by executing a joinder
agreement in the form attached hereto as Exhibit C (a “Joinder”), and delivering an executed copy thereof within two (2) Business Days after such execution, the Company and counsel to the Consenting Lenders
and the Consenting Noteholders, in which event (A) the transferee (a “Permitted Transferee”) shall be deemed to be a Consenting Lender or Consenting Noteholder (as applicable) hereunder to the extent of such transferred
rights and obligations, and (B) the transferor shall be deemed to relinquish its rights (and be released from its obligations) under this Agreement to the extent of such transferred rights and obligations; provided, further, that
a Qualified Marketmaker3 that acquires any of the Claims or Interests of any Consenting Lender or Consenting Noteholder party hereto with the purpose and intent of acting as a Qualified
Marketmaker for such Claims or Interests shall not be required to execute and deliver to counsel a Joinder or otherwise agree to be bound by the terms and conditions set forth in this Agreement (except as provided in this clause (a) and clause
(c) below) if such Qualified Marketmaker transfers such Claims or Interests (by purchase, sale, assignment, participation, or otherwise) to a Consenting Noteholder, Consenting Lender or a Permitted Transferee, and the transfer documentation
between the transferring Consenting Lender or Consenting Noteholder and such Qualified Marketmaker shall contain a requirement that provides as such. Any transfer made while this Agreement remains in effect in violation of this provision shall be
void ab initio. 
  

	3 	As used herein, the term “Qualified Marketmaker” means an entity that (a) holds itself out to the public or the applicable private markets as standing ready in the ordinary course of business to
purchase from customers and sell to customers claims against the Debtors (or enter with customers into long and short positions in claims against the Debtors), in its capacity as a dealer or market maker in claims against the Debtors and (b) is, in
fact, regularly in the business of making a market in claims against issuers or borrowers (including debt securities or other debt). 

  
 10 

 (b)    Additional Claims or Interests. This Agreement shall in no way
be construed to preclude any Consenting Lender or Consenting Noteholder from acquiring additional First Lien Term Loan Claims or Second Lien Notes Claims or any other Claims against or Interests in the Debtors; provided that, upon any such
acquisition of additional Claims or Interests, such Consenting Lender or Consenting Noteholder shall promptly notify (in no event later than five (5) Business Days thereafter) counsel to the Administrative Agent, the Consenting Noteholders and
the Company, and each Consenting Lender or Consenting Noteholder agrees (i) that such Claims and Interests (including any First Lien Term Loan Claims and Second Lien Note Claims as applicable) shall be subject to this Agreement and (ii) to
vote such Claims and Interests (if applicable) in a manner consistent with Sections 3(a)(3) and 3(b)(3) hereof as applicable. 

(c)    Obligations of Qualified Marketmaker. Notwithstanding the foregoing clause (a) of this Section 5,
if at the time of a proposed Transfer of such Claims or Interests to a Qualified Marketmaker, such Claims or Interests (x) may be voted on the Plan, the proposed transferor Consenting Noteholder Lender or Consenting Lender, as applicable, must
first vote such Claims or Interests in accordance with Section 3(a)(3) or Section 3(b)(3), as applicable, or (y) have not yet been and may not yet be voted on the Plan and such Qualified Marketmaker does not Transfer such Claims or
Interests to a subsequent transferee prior to the third (3rd) Business Day prior to the expiration of the applicable voting deadline (such date, the “Qualified Marketmaker Joinder Date”), such Qualified Marketmaker shall be required
to (and the transfer documentation to the Qualified Marketmaker shall have provided that it shall), on the first (1st) Business Day immediately following the Qualified Marketmaker Joinder Date, become a Consenting Noteholder or Consenting Lender, as
applicable, with respect to such Claims or Interests in accordance with the terms hereof (including the obligation to vote in favor the Plan); provided, that, the Qualified Marketmaker shall automatically, and without further notice or
action, no longer be a Consenting Noteholder or Consenting Lender, as applicable, with respect to such Claims or Interests at such time that the transferee of such Claims or Interests becomes a Consenting Noteholder or Consenting Lender, as
applicable, with respect to such Claims or Interests. 
 Section 6.    Representations, Warranties, Agreements
and Covenants. 
 (a)    Mutual Representations and Warranties. Each Party, severally and not jointly,
represents and warrants to the other Parties that the following statements are true, correct and complete as of the date hereof (or as of the date a Consenting Lender or Consenting Noteholder becomes a party hereto): 

(1)    Power and Authority. Such Party is validly existing and in good standing under the laws of
its jurisdiction of incorporation or organization, and has all requisite corporate, partnership, limited liability company or similar authority to enter into this Agreement and carry out the transactions contemplated hereby and perform its
obligations contemplated hereunder, and the execution and delivery of this Agreement and the performance of such Party’s obligations hereunder have been duly authorized by all necessary corporate, limited liability company, partnership or other
similar action on its part; 

  
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 (2)    No Conflict. The execution, delivery and
performance by such Party of this Agreement does not and will not (A) violate any provision of law, rule or regulation applicable to it or its charter or bylaws (or other similar governing documents), or (B) conflict with, result in a
breach of or constitute (with due notice or lapse of time or both) a default under any material contractual obligation to which it is a party; 

(3)    No Consent or Approval. The execution, delivery and performance by such Party of this
Agreement does not and will not require any registration or filing with, consent or approval of, or notice to, or other action, with or by, any federal, state or governmental authority or regulatory body, except such filings as may be necessary
and/or required by the U.S. Securities and Exchange Commission; and 
 (4)    Enforceability. This
Agreement is the legally valid and binding obligation of such Party, enforceable against it in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or
limiting creditors’ rights generally or by equitable principles relating to enforceability or a ruling of the Bankruptcy Court. 

(b)    Additional Representations of the Consenting Lenders or Consenting Noteholders. Each Consenting Lender or
Consenting Noteholder, severally and not jointly, represents and warrants to the other Parties that, as of the date hereof (or as of the date such Consenting Lender or Consenting Noteholder becomes a party hereto), such Consenting Lender or
Consenting Noteholder (i) is the owner of the aggregate principal amount of First Lien Loans or Second Lien Notes, as applicable, set forth below its name on the signature page hereto, Exhibit A hereto or to its Joinder, as
applicable, and/or (ii) has, with respect to the beneficial owner(s) of such First Lien Loans or Second Lien Notes, as applicable, (A) sole investment or voting discretion with respect to such First Lien Loans or Second Lien Notes,
(B) full power and authority to vote on and consent to matters concerning such First Lien Loans (and any First Lien Term Loan Claims associated therewith) or Second Lien Notes (and any Second Lien Notes Claims associated therewith), and
(C) full power and authority to bind or act on the behalf of, such beneficial owner(s). 
 (c)    Make Whole
Settlement (Consenting Noteholders). Each Consenting Noteholder hereby (i) agrees to the terms of the settlement as to the amount of the Yield Maintenance Amount and Call Protection Amount (each as defined in the Term Loan Agreement) as
described in the Restructuring Term Sheet, (ii) agrees, admits and stipulates that the First Lien Lenders shall have allowed, secured Claims with respect to the Yield Maintenance Amount and Call Protection Amount in an aggregate principal
amount equal to $50 million, plus all pre- and post-petition interest thereon, and that the Yield Maintenance Amount and Call Protection Amount in such aggregate amount constitute Secured Obligations (as
defined in the Term Loan Agreement) that are legal, valid, binding and non-avoidable obligations against each of the Debtors and are not subject to any avoidance, recharacterization, effect, counterclaim,
defense, offset, subordination, other claim, cause of action or other challenge of any kind or nature under the Bankruptcy Code, under applicable non-bankruptcy law or otherwise, (iii) agrees and admits
that the Debtors’ stipulations and admissions contained in paragraphs 5 and 16 of the Interim DIP Order (including as to the amount and validity of the Yield Maintenance Amount and the Call Protection Amount) are true and accurate, and shall be
deemed binding on it as if made by such 

  
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Consenting Noteholder and (iv) agrees not to contest or object to or support any other entity in contesting or objecting to (and shall direct the Indenture Trustee not to contest or object
to) the allowance or enforceability of the Yield Maintenance Amount or Call Protection Amount in an aggregate principal amount equal to $50 million, plus all pre- and post-petition interest thereon;
provided that, pursuant to the terms of the Restructuring and Settlement Term Sheet, the Yield Maintenance Amount and Call Protection Amount may be increased up to the Maximum MW Amount and may be reduced to not less than the Minimum MW
Amount and the First Lien Lenders shall waive their rights to any pre- or post-petition interest thereon. This agreement, stipulations, and admissions contained in this Section 6(c) shall be deemed a
binding settlement on each of the Consenting Noteholders, their successors, assignees, affiliates, agents and employees immediately as of the Agreement Effective Date, which settlement shall be a Surviving Provision (as defined below) that survives
termination of this Agreement except following the occurrence of a MW Settlement Termination Event (as defined below). Following the occurrence of a MW Settlement Termination Event, the Challenge Period (as defined in the DIP Orders) shall be
extended solely as to the Consenting Noteholders to the date that is ten (10) Business Days following the date of the MW Settlement Termination Event (to the extent the Challenge Period has otherwise passed). In the event of a successful
Challenge that results in a final determination of the Yield Maintenance Amount and Call Protection Amount to be less than the Minimum MW Amount, the Prepetition Second Lien Secured Parties shall not be required to satisfy any such disallowed
obligations from their own recovery (whether as a result of the turnover provisions of Second Lien Intercreditor Agreement (as defined in the Term Loan Agreement) or under any other legal or contractual theory) and the Make Whole Amount shall be
such lesser amount determined in such successful Challenge for all purposes. For the avoidance of doubt, upon the occurrence of a MW Settlement Termination Event, this Section 6(c) shall be shall be null and void and of no further force and
effect. 
 (d)    Make Whole Settlement (Consenting Lenders). Each Consenting Lender hereby (i) agrees to
the terms of the settlement as to the amount of the Yield Maintenance Amount and Call Protection Amount (each as defined in the Term Loan Agreement) as described in the Restructuring Term Sheet, and (ii) agrees not to (and shall direct the
Administrative Agent not to) assert that the Yield Maintenance Amount or Call Protection Amount is an amount greater than $50 million, plus all pre- and post-petition interest thereon to the extent set
forth in this Agreement and the Restructuring Term Sheet; provided that, pursuant to the terms of the Restructuring and Settlement Term Sheet, the Yield Maintenance Amount and Call Protection Amount may be increased up to the Maximum MW
Amount and may be reduced to not less than the Minimum MW Amount and such Consenting Lender waives its rights to any pre- or post-petition interest thereon. This agreement, stipulations, and admissions
contained in this Section 6(d) shall be deemed a binding settlement on each of the Consenting Lenders, their successors, assignees, affiliates, agents and employees immediately as of the Agreement Effective Date, which settlement shall be a
Surviving Provision (as defined below) that survives termination of this Agreement except following the occurrence of a MW Settlement Termination Event (as defined below). Following the occurrence of a MW Settlement Termination Event, the Challenge
Period shall be extended solely as to the Consenting Lenders to the date that is ten (10) Business Days following the date of the MW Settlement Termination Event (to the extent the Challenge Period has otherwise passed). For the avoidance of
doubt, upon the occurrence of a MW Settlement Termination Event, this Section 6(d) shall be null and void and of no further force and effect. 

  
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 (e)    Mutual Release. In consideration of the benefits afforded by
this Agreement, (i) the Company, including after the Petition Date, on behalf of themselves and their respective estates, (ii) each Consenting Noteholder, (iii) the Administrative Agent and (iv) each Consenting Lender, on behalf
of themselves and each of the foregoing Parties’ predecessors, successors and assigns, and current and former shareholders, affiliates, subsidiaries, principals, employees, agents, officers, directors, managers, trustees, partners, members,
professionals, representatives, advisors, attorneys, financial advisors, accountants, investment bankers, and consultants (collectively, the “Representatives” in their capacities as such), in each case in their capacity as such, forever
and irrevocably release, discharge, and acquit each other and their respective Representatives of and from any and all claims, demands, liabilities, responsibilities, disputes, remedies, causes of action, indebtedness and obligations, rights,
assertions, allegations, actions, suits, controversies, proceedings, losses, damages, injuries, reasonable attorneys’ fees, costs, expenses, or judgments of every type, whether known, unknown, asserted, unasserted, suspected, unsuspected,
accrued, unaccrued, fixed, contingent, pending or threatened, including all legal and equitable theories of recovery, arising under common law, statute or regulation or by contract, of every nature and description, solely arising out of, in
connection with, or relating to this (a) Agreement, (b) the Term Loan Agreement and the related loan documents (including any forbearance or waivers granted in connection therewith), and any actions taken by the Administrative Agent or Lender
thereunder, including the exercise of remedies and acceleration of such debt, (c) the Second Lien Notes Indenture and the related loan documents (including any forbearance or waivers granted in connection therewith), and any actions taken by
the Indenture Trustee or holders of Second Lien Notes thereunder, including the exercise of remedies and acceleration of such debt) and/or (d) in each case, any transactions contemplated hereunder or thereunder, including any and all (x) so-called “lender liability” or similar claims or causes of action, (y) claims and causes of action arising under the Bankruptcy Code, and (z) claims and causes of action with respect to
the validity, priority, perfection or avoidability of the liens or claims of the Administrative Agent, the First Lien Lenders or the holders of Second Lien Notes; provided that, the releases set forth in this section shall be limited to such claims
arising prior to and including the Agreement Effective Date and, with respect to the Debtors and their estates, shall be subject to the challenge provisions of the applicable DIP Order and any applicable Challenge; provided further,
that, from and after the occurrence of a MW Settlement Termination Event this Section 6(e) and the releases set forth herein shall be null and void and of no further force and effect; provided, further, that the mutual releases in this
Section 6(e) shall not affect or release any Party’s rights to enforce this Agreement, the Plan or the other contracts, instruments, releases, agreements or documents to be, entered into or delivered in connection with this Agreement, the
Plan or the Restructuring. 
 Section 7.    Termination Events. 

(a)    Consenting Noteholder Termination Events. The Required Consenting Noteholders shall have the
right, but not the obligation, upon seven (7) Business Days’ written notice to the Administrative Agent and the Company in accordance with Section 9(o) hereof, to terminate the obligations of the Consenting Noteholders under this
Agreement upon the occurrence of any of the following events, unless waived, in writing by the Required Consenting Noteholders on a prospective or retroactive basis (it being agreed, during the seven (7) Business Days’ notice period, any
of the following events may be cured): 
 (1)    the cases shall not have been commenced by May 18,
2018; 
 (2)    the Bankruptcy Court shall not have entered the Interim DIP Order within three
(3) Business Days of the Petition Date (unless the DIP Lenders extend the date under the DIP Credit Agreement by which the Interim DIP Order must be entered, in which case such extended date shall apply to this clause (2)); 

  
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 (3)    the Debtors shall not have filed the Sale Motion
within fourteen (14) days after the Petition Date; 
 (4)    the Bankruptcy Court shall not have
entered the Bid Procedures Order within fifty (50) days after the Petition Date; 
 (5)    the
Bankruptcy Court shall not have entered an order approving the Disclosure Statement within seventy-five (75) days after the Petition Date; 

(6)    the Bid Deadline shall not have occurred within one hundred fifteen (115) days after the
Petition Date; 
 (7)    if a “qualified bid” satisfying the Reserve Price has been submitted
prior to the Bid Deadline, the Debtors shall not have commenced the Auction within one hundred twenty-five (125) days of the Petition Date; 

(8)    the Restructuring Transaction shall not have been consummated within one hundred seventy
(170) days of the Petition Date; 
 (9)    the Bankruptcy Court shall have entered an order
(i) directing the appointment of an examiner with expanded powers or a trustee, (ii) converting any of the Cases to a case under chapter 7 of the Bankruptcy Code, or (iii) dismissing any of the Cases, which order has not been
stayed, reversed or vacated within ten (10) Business Days after such issuance; 
 (10)    any
Debtor (i) files, amends or modifies, or files a pleading seeking approval of any Definitive Documentation (other than the DIP Credit Agreement) or authority to amend or modify the Definitive Documentation (other than the DIP Credit Agreement)
in a manner that is inconsistent with or not permitted by this Agreement or the Restructuring Term Sheet (including with respect to the consent rights afforded the Consenting Lenders and Consenting Noteholders, respectively, under this Agreement)
without the prior written consent of the Required Consenting Noteholders (it being agreed, the DIP Credit Agreement and related documents may be amended, supplemented or modified without the consent of the Consenting Noteholders, subject to their
rights in Section 7(a)(13) and the limitations set forth in the last paragraph of Section 3(b)), (ii) revokes the Restructuring Transaction without the prior consent of the Required Consenting Noteholders, or (iii) publicly announces
its intention to take any such acts listed in the foregoing clause (i) or (ii) or is otherwise inconsistent with the consent rights afforded such Parties under this Agreement; 

  
 15 

 (11)    a material breach by any Debtor of any
representation, warranty, or covenant of such Debtor set forth in this Agreement, which (to the extent curable) remains uncured for a period of seven (7) Business Days after the receipt by the Debtors of written notice of such breach; 

(12)    a material breach by a Consenting Lender of any representation, warranty, or covenant of such
Consenting Lender set forth in this Agreement (including, for the avoidance of doubt, the obligations regarding the transfer of claims in Section 5 hereof), which (to the extent curable) remains uncured for a period of seven (7) Business
Days after the receipt by such Consenting Lender of written notice of such breach from the Required Consenting Noteholder; provided, that, the foregoing shall not be a termination event so long as
non-breaching Consenting Lenders party hereto continue to hold at least 66-2/3% of the outstanding First Lien Loans; 

(13)    prior to the Bid Deadline, or after the Bid Deadline if a “qualified bid” satisfying the
Reserve Price has been received and the Debtors are pursuing closing of such bid, (i) an Event of Default has occurred under the DIP Credit Agreement and the administrative agent or lenders thereunder have commenced remedies with respect to
such Event of Default or (ii) any of the milestone dates in the DIP Credit Agreement are shortened or the DIP Credit Agreement is waived, modified, amended or supplemented in a manner that materially and adversely changes the economic terms
from the perspective of the Debtors, including in a manner that increases, or is reasonably likely to increase, the obligations or liabilities of the Debtors under the DIP Credit Agreement in an amount greater than $1,000,000; provided, that
the extension of additional loans to the Debtors, and any resulting increase in commitments, under the DIP Credit Agreement on economic terms and conditions that are substantially similar to the economic terms and conditions of the DIP Credit
Agreement shall not cause a termination event under this subclause (ii); or 
 (14)    the issuance by
any governmental authority, including the Bankruptcy Court, any regulatory authority, or any other court of competent jurisdiction, of any ruling or order that would reasonably be expected to prevent consummation of the Restructuring Transaction in
accordance with this Agreement and the Restructuring Term Sheet; provided, however, that the Parties shall have ten (10) Business Days after issuance of such final ruling, judgment or order to obtain relief that would allow
consummation of the Restructuring Transaction in accordance with this Agreement and the Restructuring Term Sheet; provided further that, the denial of the Settlement Approval Order by the Bankruptcy Court or a successful
Challenge as to the amount of the Yield Protection Amount or Call Protection Amount shall not constitute a termination event for the Consenting Noteholders under this clause (14) or otherwise. 

  
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 (b)    Consenting Lenders Termination Events. The Required Consenting
Lenders shall have the right, but not the obligation, upon seven (7) Business Days’ written notice to the counsel to the Consenting Noteholders and the Company in accordance with Section 9(o) hereof, to terminate the obligations of
the Consenting Lenders and Administrative Agent under this Agreement upon the occurrence of any of the following events, unless waived, in writing by the Required Consenting Lenders on a prospective or retroactive basis (it being agreed, during the
seven (7) Business Days’ notice period, any of the following events may be cured): 

(1)    the cases shall not have been commenced by May 18, 2018; 

(2)    the Bankruptcy Court shall not have entered the Interim DIP Order within three (3) Business
Days of the Petition Date (unless the DIP Lenders extend the date under the DIP Credit Agreement by which the Interim DIP Order must be entered, in which case such extended date shall apply to this clause (2)); 

(3)    the Debtors shall not have filed the Sale Motion within fourteen (14) days after the Petition
Date; 
 (4)    the Bankruptcy Court shall not have entered the Bid Procedures Order within fifty
(50) days after the Petition Date; 
 (5)    the Bankruptcy Court shall not have entered an order
approving the Disclosure Statement within seventy-five (75) days after the Petition Date; 

(6)    the Bid Deadline shall not have occurred within one hundred fifteen (115) days after the
Petition Date; 
 (7)    if a “qualified bid” satisfying the Reserve Price has been submitted
prior to the Bid Deadline, the Debtors shall not have commenced the Auction within one hundred twenty-five (125) days of the Petition Date; 

(8)    the Restructuring Transaction shall not have been consummated within one hundred seventy
(170) days of the Petition Date;; 
 (9)    the Bankruptcy Court shall have entered an order
(i) directing the appointment of an examiner with expanded powers or a trustee, (ii) converting any of the Cases to a case under chapter 7 of the Bankruptcy Code, or (iii) dismissing any of the Cases, which order has not been stayed,
reversed or vacated within ten (10) Business Days after such issuance; 
 (10)    any Debtor
(i) files, amends or modifies, or files a pleading seeking approval of any Definitive Documentation or authority to amend or modify the Definitive Documentation in a manner that is inconsistent with or is not permitted by this Agreement or the
Restructuring Term Sheet (including with respect to the consent rights afforded the Consenting Lenders and Consenting Noteholders, respectively, under this Agreement) without the prior written consent of the Required Consenting Noteholders,
(ii) revokes the Restructuring Transaction without the prior consent of the Required Consenting Lenders, or (iii) publicly announces its intention to take any such acts listed in the foregoing clause (i) or (ii) or is otherwise
inconsistent with the consent rights afforded such Parties under this Agreement; 
 (11)    a material
breach by any Debtor of any representation, warranty, or covenant of such Debtor set forth in this Agreement, which (to the extent curable) remains uncured for a period of seven (7) Business Days after the receipt by the Debtors of written
notice of such breach; 

  
 17 

 (12)    a material breach by a Consenting Noteholder of any
representation, warranty, or covenant of such Consenting Noteholder set forth in this Agreement (including, for the avoidance of doubt, the obligations regarding the transfer of claims in Section 5 hereof), which (to the extent curable) remains
uncured for a period of seven (7) Business Days after the receipt by such Consenting Noteholder of written notice of such breach from the Administrative Agent; provided, that, the foregoing shall not be a termination event so long as non-breaching Consenting Noteholders party hereto continue to be the beneficial owners of and/or the investment manager of the beneficial owners of at least 66-2/3% of the
outstanding Second Lien Notes; or 
 (13)    the issuance by any governmental authority, including the
Bankruptcy Court, any regulatory authority, or any other court of competent jurisdiction, of any ruling or order that prevents consummation of the Restructuring Transaction in accordance with this Agreement and the Restructuring Term Sheet;
provided, however, that the Parties shall have ten (10) Business Days after issuance of such final ruling, judgment or order to obtain relief that would allow consummation of the Restructuring Transaction in accordance with this
Agreement and the Restructuring Term Sheet; provided further that, the denial of the Settlement Approval Order by the Bankruptcy Court or a successful Challenge as to the amount of the Yield Protection Amount or Call Protection
Amount shall not constitute a termination event for the Consenting Lenders under this clause (13); 

(14)    an Event of Default has occurred under the DIP Credit Agreement and such Event of Default is
outstanding and continuing for a period of more than two (2) Business Days; or 
 (15)    the
earliest to occur of: (i) the Bankruptcy Court shall have affirmatively denied approval of the Settlement Approval Order, (ii) the Bankruptcy Court shall not have entered the Settlement Approval Order within seventy-five (75) days
after the Petition Date, (iii) the Settlement Approval Order, once entered, shall be stayed, reversed, modified or vacated or (iv) a Challenge that results in a final determination of the Yield Maintenance Amount and Call Protection Amount
to be less than the Minimum MW Amount; provided that, the Required Consenting Lenders must terminate this Agreement pursuant to this clause (15) no later than ten (10) Business Days after the occurrence of the event described in
this clause having occurred (by delivering notice of such termination to the Company and the Consenting Noteholders on or prior to the expiry of such ten (10) Business Day period), and after such ten (10) Business Day period this
termination event may not otherwise be exercised and this Agreement shall remain in full force and effect. 

  
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 (c)    Debtors’ Termination Events. This agreement may be
terminated with respect to all Parties upon seven (7) Business Days’ written notice by delivery by the Debtors to the Consenting Noteholders, the Administrative Agent and the Consenting Lenders in accordance with Section 9(o) hereof,
upon the occurrence of any of the following events (it being agreed, during the seven (7) Business Days’ notice period, any of the following events may be cured): 

(1)    solely with respect to the Consenting Noteholders, a material breach by a Consenting Noteholder of
any representation, warranty, or covenant of such Consenting Noteholder set forth in this Agreement (including, for the avoidance of doubt, the obligations regarding the transfer of claims in Section 5 hereof), which (to the extent curable)
remains uncured for a period of seven (7) Business Days after the receipt by such Consenting Noteholder of written notice of such breach; provided, however, that so long as non-breaching
Consenting Noteholders party hereto continue to be the beneficial owners of and/or the investment manager of the beneficial owners of at least 66-2/3% of the outstanding Second Lien Notes, such termination
shall be effective only with respect to such breaching Consenting Noteholders; 
 (2)    solely with
respect to the Consenting Lenders, a material breach by the Administrative Agent or a Consenting Lender of any representation, warranty, or covenant of the Administrative Agent or such Consenting Lender set forth in this Agreement (including, for
the avoidance of doubt, the obligations regarding the transfer of claims in Section 5 hereof), which (to the extent curable) remains uncured for a period of seven (7) Business Days after the receipt by the Administrative Agent of written
notice of such breach; provided, however, that so long as non-breaching Consenting Lenders party hereto continue to hold at least 66-2/3% of the
outstanding First Lien Loans, such termination shall be effective only with respect to such breaching Consenting Lenders; 

(3)    the issuance by any governmental authority, including the Bankruptcy Court, any regulatory
authority, or any other court of competent jurisdiction, of any ruling or order that could reasonably be expected to prevent consummation of the Restructuring Transaction; provided, however, that the Parties shall have ten
(10) Business Days after issuance of such final ruling, judgment or order to obtain relief that would allow consummation of the Restructuring Transaction in accordance with this Agreement; provided further that, the denial
of the Settlement Approval Order by the Bankruptcy Court or a successful Challenge as to the amount of the Yield Protection Amount or Call Protection Amount shall not constitute a termination event for the Company under this clause (3) or
otherwise; or 
 (4)    prior to the conclusion of the Auction or, if no “qualified bid” has
been submitted on or prior to the Bid Deadline, prior to the Bid Deadline, the board of directors of Rex determines that an Alternative Transaction satisfies conditions described in Section 3(c)(16) based upon advice of counsel and outside
financial advisors, in good faith and consistent with its fiduciary duties under applicable law, proceeding with the Restructuring Transaction contemplated herein and in the Restructuring Term Sheet, and consummation of the Restructuring
Transaction, would be inconsistent with the exercise of its fiduciary duties under applicable law. 

  
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 (d)    Mutual Termination; Automatic Termination. This Agreement and
the obligations of all Parties hereunder may be terminated by mutual written agreement by and among (i) each of the Debtors, (ii) the Required Consenting Noteholders and (iii) the Required Consenting Lenders. Notwithstanding anything
in this Agreement to the contrary, this Agreement shall terminate automatically upon consummation of the Restructuring Transaction. 

(e)    Individual Termination. Any Consenting Noteholder or any Consenting Lender may terminate this
Agreement as to itself only, upon written notice to the other Parties in accordance with Section 9(o) hereof, in the event that: (i) such Consenting Noteholder or such Consenting Lender has transferred all (but not less than all) of its
Second Lien Notes Claims or First Lien Term Loan Claims, as applicable, in accordance with Section 5 of this Agreement (such termination shall be effective on the date on which such Consenting Noteholder or Consenting Lender has effected such
transfer, satisfied the requirements of Section 5 and provided the written notice required above in Section 9(o)); (ii) this Agreement or the Restructuring Term Sheet is amended without its consent in such a way as to alter any of the
material terms hereof in a manner that is disproportionately adverse to such Consenting Noteholder or such Consenting Lender as compared to similarly situated Consenting Noteholders or Consenting Lenders, by giving ten (10) Business Days’
written notice to the other Parties in accordance with Section 9(o); provided, that such written notice shall be given by the applicable Consenting Noteholder or applicable Consenting Lender within five (5) Business Days of such
amendment, filing, or execution; or (iii) the Restructuring Term Sheet is amended, supplemented or otherwise modified without its consent in such a way as to adversely and materially modify the economic treatment contemplated for such
Consenting Noteholder or Consenting Lender, as applicable, relative to the treatment contemplated by the Restructuring Term Sheet as of the Agreement Effective Date, by giving ten (10) Business Days’ written notice to the other Parties in
accordance with Section 9(o); provided, that such written notice shall be given by the applicable Consenting Noteholder or applicable Consenting Lender within five (5) Business Days of such amendment, supplement or other
modification. 
 (f)    Inability to Terminate. No Party may terminate this Agreement if such Party’s
conduct or non-compliance or breach of this Agreement is the basis of the applicable termination event pursuant to which such Party seeks to terminate this Agreement. For the avoidance of doubt, and
notwithstanding the foregoing, the Required Consenting Lenders shall not be prohibited from terminating this Agreement as a result of an Event of Default under (and as defined in) the DIP Credit Agreement. In addition, no Consenting Noteholder may
terminate this Agreement if the applicable termination event resulted from the failure to close a Sale for which the Consenting Noteholders, Indenture Trustee or their designee or affiliates were the proposed purchaser and such failure to close is
not a direct result of a breach by the Debtors of the applicable purchase agreement. 
 (g)    Effect of
Termination. The earliest date on which termination of this Agreement is effective in accordance with this Section 7 shall be referred to as a “Termination Date.” Upon the occurrence of a Termination Date, all
Parties’ obligations under this Agreement shall be terminated effective immediately, and the Parties shall be released from all commitments, undertakings, and agreements hereunder; provided, however, that each of the following
shall survive any such termination: (a) any claim for breach of this Agreement that occurs prior to such Termination Date, and all rights and remedies with respect to such claims shall not be prejudiced in any way; (b) the Company’s
obligations in Sections 3(c)(1) and 3(c)(2) hereof accrued up to and including such Termination Date; (c) the commitments, undertakings and agreements of the Consenting Noteholders contained in Section

  
 20 

 
6(c) and the Consenting Lenders in Section 6(d) of this Agreement; (d) Section 6(e) of this Agreement; and (e) Section 9 hereof (the foregoing clauses (a)-(e),
collectively, the “Surviving Provisions”); provided the releases set forth in Section 6(e) of this Agreement and the commitments, undertakings and agreements of the Consenting Noteholders contained in
Section 6(c) and the Consenting Lenders in Section 6(d) of this Agreement shall not constitute a Surviving Provision (and such commitments, undertakings and agreement shall terminate) if this Agreement has been terminated either by the
Required Consenting Noteholders pursuant to Sections 7(a)(12) or 7(a)(13) or by the Required Consenting Lenders pursuant to Section 7(b)(15) (each a “MW Settlement Termination Event”). The Parties agree that the giving
of notice under and/or termination of this Agreement in accordance with its terms is not prohibited as a matter of law by the automatic stay imposed by section 362 of the Bankruptcy Code, and the Debtors agree not to raise any argument or take any
position to the contrary. For the avoidance of doubt and excluding the Surviving Provisions, all Parties’ obligations under this Agreement shall be terminated effective immediately, and the Parties shall be released from all commitments,
undertakings, and agreements hereunder if the Agreement is terminated in accordance with its terms by any of the following Parties: (i) the Debtors (except if such termination is only effective with respect to a breaching Consenting Noteholder
or breaching Consenting Lender in accordance with the last proviso of Section 7(c)(1) or (2), as applicable); (ii) the Consenting Noteholders; or (iii) the Consenting Lenders. The termination of this Agreement shall not modify, impair or
be deemed to be a waiver of any rights and obligations under the Second Lien Intercreditor Agreement (as defined in the Term Loan Agreement), all of which shall remain full force and effect on the parties thereto. 

Section 8.    Amendments and Waivers. The terms and conditions of this
Agreement, including any exhibits, annexes or schedules to this Agreement, may not be waived, modified, amended, or supplemented without the prior written consent of the Debtors, the Required Consenting Lenders and the Required Consenting
Noteholders 
 Section 9.    Miscellaneous. 

(a)    Entire Agreement. This Agreement constitutes the entire agreement among the Parties with respect to the
subject matter hereof and supersedes all prior agreements, oral, or written, among the Parties with respect thereto. 

(b)    Headings. The headings of the sections, paragraphs, and subsections of this Agreement are inserted for
convenience only and shall not affect the interpretation hereof or, for any purpose, be deemed a part of this Agreement. 

(c)    Governing Law; Submission to Jurisdiction; Forum Selection. This Agreement shall be construed and enforced
in accordance with, and the rights of the Parties shall be governed by, the laws of the State of New York, without giving effect to the conflicts of law principles thereof. Each Party hereto agrees that it shall bring any action or proceeding in
respect of any claim arising out of or related to this Agreement, to extent possible, in either the United States District Court for the Southern District of New York or any New York State court located in New York County (the “Chosen
Courts”), and solely in connection with claims arising under this Agreement: (a) irrevocably submits to the exclusive jurisdiction of the Chosen Courts; (b) waives any objection to laying venue in any such action or proceeding
in the Chosen 

  
 21 

 
Courts; and (c) waives any objection that the Chosen Courts are an inconvenient forum or do not have jurisdiction over any Party hereto; provided that, if the Debtors commence the
Cases, then the Bankruptcy Court (or court of proper appellate jurisdiction) shall be the exclusive jurisdiction rather than any Chosen Court. 

(d)    Trial by Jury Waiver. Each Party hereto irrevocably waives any and all right to trial by jury in any legal
proceeding arising out of or related to this Agreement or the transactions contemplated hereby. 
 (e)    Execution
of Agreement. This Agreement may be executed and delivered in any number of counterparts and by way of electronic signature and delivery, each such counterpart, when executed and delivered, shall be deemed an original, and all of which together
shall constitute the same agreement. Each individual executing this Agreement on behalf of a Party has been authorized and empowered to execute and deliver this Agreement on behalf of said Party. 

(f)    Interpretation and Rules of Construction. This Agreement is the product of negotiations among the Parties,
and the enforcement or interpretation hereof, is to be interpreted in a neutral manner, and any presumption with regard to interpretation for or against any Party by reason of that Party having drafted or caused to be drafted this Agreement or any
portion hereof, shall not be effective in regard to the interpretation hereof. 
 (g)    Successors and Assigns.
Except as otherwise provided in this Agreement and subject to Section 5 of this Agreement, neither this Agreement nor any of the rights or obligations hereunder may be assigned by any Party hereto, without the prior written consent of the other
Parties hereto, and then only to a person or entity that has agreed to be bound by the provisions of this Agreement. This Agreement is intended to bind and inure to the benefit of each of the Parties and each of their respective permitted
successors, assigns, heirs, executors, administrators, and representatives. 
 (h)    No Third-Party
Beneficiaries. This Agreement shall be solely for the benefit of the Parties and no other person or entity shall be a third-party beneficiary of this Agreement. 

(i)    Reservation of Rights. If the Restructuring is not consummated, or if this Agreement is terminated for any
reason, the Parties fully reserve any and all of their rights, subject to the Surviving Provisions. 

(j)    Specific Performance. This Agreement is intended as a binding commitment enforceable in accordance with its
terms. It is understood and agreed by the Parties that money damages would be an insufficient remedy for any breach of this Agreement by any Party and each non-breaching Party shall be entitled to specific
performance and injunctive relief as the sole remedy for any such breach, including an order of the Bankruptcy Court or other court of competent jurisdiction requiring any Party to comply promptly with any of its obligations hereunder;
provided, however, that each Party agrees to waive any requirement for the securing or posting of a bond in connection with such remedy. The Parties agree that in no event will any Party be liable for any consequential, special,
indirect or punitive damages or damages for lost profits. 

  
 22 

 (k)    Consents and Acknowledgements. Each Party irrevocably
acknowledges and agrees that this Agreement is not and shall not be deemed to be a solicitation for consents to the Plan (if any). The acceptance of the Plan (if any) by each of the Consenting Noteholders and each Consenting Lender shall be
solicited pursuant to the Disclosure Statement and related ballots in accordance with applicable law, and subject to sections 1125, 1126, and 1127 of the Bankruptcy Code. This Agreement does not constitute, and shall not be deemed to constitute, an
offer for the purchase, sale, exchange, hypothecation, or other transfer of securities for purposes of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or any other federal, state, or provincial law or
regulation. 
 (l)    Relationship Among Parties. Notwithstanding anything herein to the contrary, the duties and
obligations of the Administrative Agent, the Consenting Noteholders and the Consenting Lenders under this Agreement shall be several, not joint, with respect to the Administrative Agent and each Consenting Noteholder and each Consenting
Lender. No Party shall have any responsibility by virtue of this Agreement for any trading by any other entity, and it is hereby expressly acknowledged by the Consenting Noteholders, the Administrative Agent and the Consenting Lenders, on the
one hand, and the Debtors, on the other, that they are in privity with each other and that no Consenting Noteholder is in privity with any other Consenting Noteholder, the Administrative Agent or any Consenting Lender, and no Consenting Lender is in
privity with any other Consenting Lender or any Consenting Noteholder, in connection with this Agreement or any of the transactions contemplated hereby. The Consenting Noteholders represent and warrant that as of the date hereof and for so long
as this Agreement remains in effect, the Consenting Noteholders have no agreement, arrangement, or understanding with respect to acting together for the purpose of acquiring, holding, voting, or disposing of any equity securities of the Debtors. The
Consenting Lenders and the Administrative Agent represent and warrant that as of the date hereof and for so long as this Agreement remains in effect, the Consenting Lenders and the Administrative Agent have no agreement, arrangement, or
understanding with respect to acting together for the purpose of acquiring, holding, voting, or disposing of any equity securities of the Debtors. No prior history, pattern, or practice of sharing confidences among or between the Parties shall in
any way affect or negate this Agreement, and each Consenting Noteholder and each Consenting Lender shall be entitled to independently protect and enforce its rights, including the rights arising out of this Agreement, and it shall not be necessary
for any other Consenting Noteholder or any Consenting Lender to be joined as an additional party in any proceeding for such purpose. Nothing contained in this Agreement, and no action taken by any Consenting Noteholder pursuant hereto is
intended to constitute the Consenting Noteholders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that any Consenting Noteholder is in any way acting in concert or as a member of a
“group” with any other Consenting Noteholder or Consenting Noteholders within the meaning of Rule 13d-5 under the Securities Exchange Act of 1934, as amended. Nothing contained in this Agreement, and
no action taken by any Consenting Lender pursuant hereto is intended to constitute the Consenting Lender as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that any Consenting Lender is in any way
acting in concert or as a member of a “group” with any other Consenting Lender or Consenting Lender within the meaning of Rule 13d-5 under the Securities Exchange Act of 1934, as amended. 

  
 23 

 (m)    Time Periods. If any time period or other deadline provided in
this Agreement expires on a day that is not a Business Day, then such time period or other deadline, as applicable, shall be deemed extended to the next succeeding Business Day. For the purposes of this Agreement, “Business
Day” means any day, other than a Saturday, Sunday, or legal holiday, in each case, in New York, New York. 

(n)    Creditors’ Committee. Notwithstanding anything herein to the contrary, if any Consenting Noteholder or
Consenting Lender is appointed to, and serves on an official committee of creditors in the Cases, the terms of this Agreement shall not be construed so as to limit such Consenting Noteholder’s or Consenting Lender’s exercise of its
fiduciary duties arising from its service on such committee; provided, however, that service as a member of a committee shall not relieve such Consenting Noteholder or Consenting Lender of its obligations to affirmatively support the
Restructuring on the terms and conditions set forth in this Agreement and the Restructuring Term Sheet. 

(o)    Notices. All notices hereunder shall be deemed given if in writing and delivered, if contemporaneously sent
by electronic mail, facsimile, courier, or by registered or certified mail (return receipt requested) to the following addresses or electronic mail addresses: 
  

	 	(1)	If to the Company, to: 

 Rex Energy Corporation 

366 Walker Drive 
 State
College, PA 16801 
 Attn: Thomas Stabley, President and Chief Executive Officer 

Email: tstabley@rexenergycorp.com 

with a copy to: 
 John
Luke, Senior Vice President, General Counsel 
 and Secretary 

Email: jluke@rexenergycorp.com 

Fax: 814-278-7286 

and 
 Jones Day 

250 Vesey St. 
 New York, New
York 10281 
 Attn: Scott J. Greenberg 

Email: sgreenberg@jonesday.com 

and 
 Jones Day 

717 Texas, Suite 3300 
 Houston,
Texas 77002-2712 
 Attn: Thomas A. Howley 

Email: tahowley@jonesday.com 

  
 24 

	 	(2)	If to Consenting Lenders or the Administrative Agent: 

 Angelo, Gordon Energy Servicer, LLC

 c/o Cortland Capital Market Services LLC 

225 W. Washington St. 21st Floor 

Chicago, Illinois 60606 
 Attn:
Agency Services – Angelo, Gordon 
 Email: AngeloGordonAgency@cortlandglobal.com 

Tele: 312-564-5078 

Fax: 312-376-0751 

and 
 Simpson
Thacher & Bartlett LLP 
 425 Lexington Avenue 

New York, New York 10017 

Attention: Michael H. Torkin (michael.torkin@stblaw.com) 
  

	 	(3)	If to the Consenting Noteholders: 

 Akin Gump Strauss Hauer & Feld LLP 

One Bryant Park 
 Bank of
America Tower 
 New York, NY 10036-6745 

Attention:        Michael S. Stamer (mstamer@akingump.com) 

Meredith A. Lahaie (mlahaie@akingump.com) 

Stephen B. Kuhn (skuhn@akingump.com) 

Any notice given by delivery, mail, or courier shall be effective when received. Any notice given by facsimile or electronic mail shall be
effective upon oral, machine, or electronic mail (as applicable) confirmation of transmission. 
 (p)    Disclosure
by the Debtors. Each Party hereto agrees that it will permit public disclosure by the Debtors, including in a press release, of the contents of this Agreement (subject the Required Consenting Noteholders and Administrative Agent reviewing and
consenting to the contents of such disclosure prior to its issuance), but the Debtors shall not, and the Debtors hereby agree that they will not, share the identity of any of the Consenting Noteholders or Consenting Lender or the amount of Second
Lien Notes held by each Consenting Noteholders as set forth on Exhibit A hereto or the First Lien Loans held by each Consenting Lenders as set forth on the signature pages hereto with any person and that it will keep such information
confidential; provided, however, that the Debtors may disclose publicly the aggregate principal amount of the Second Lien Notes held by the Consenting Noteholders as set forth on Exhibit A hereto or the First Lien
Loans held by each Consenting Lenders as set forth the signature pages hereto. 

  
 25 

 (q)    Severability. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. In the event that any part of this Agreement is declared by any court or other judicial or administrative
body to be null, void or unenforceable, said provision survives to the extent it is not so declared, and all of the other provisions of this Agreement remain in full force and effect only if, after excluding the portion deemed to be unenforceable,
the remaining terms provide for the consummation of the transactions contemplated hereby in substantially the same manner as originally set forth at the later of the date this Agreement was executed or last amended. 

(r)    Independent Analysis. Each Party hereby confirms that it has made its own decision to execute this Agreement
based upon its own independent assessment of documents and information available to it, as it has deemed appropriate. Each Party has had the ability to, and has, consulted with counsel in connection with its consideration of this Agreement. Each
Party agrees that it has not entered into this Agreement based upon any representation and warranties that are not included herein. 

(s)    Mutual Drafting. This Agreement is the result of the Parties’ joint efforts, and each of them and their
respective counsel have reviewed this Agreement and each provision hereof has been subject to the mutual consultation, negotiation and agreement of the Parties, and the language used in this Agreement shall be deemed to be the language chosen by the
Parties to express their mutual intent, and therefore there shall be no construction against any Party based on any presumption of that Party’s involvement in the drafting thereof. 

(t)    Indenture Trustee. To the extent this Agreement requires the Consenting Noteholders to take or refrain from
taking any action, the Consenting Noteholders shall also direct the Indenture Trustee to take or refrain from taking such actions. 
  

[Remainder of Page Intentionally Left Blank] 

  
 26 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first written above. 
  

			
	DEBTORS:
	
	REX ENERGY CORPORATION

 
			
		
	By:	 	 /s/ Tom Stabley

	Name:	 	Thomas C. Stabley
	Title:	 	President & Chief Executive Officer

 
			
	
	REX ENERGY I, LLC

 
			
		
	By:	 	 /s/ Tom Stabley

	Name:	 	Thomas C. Stabley
	Title:	 	President & Chief Executive Officer

 
			
	
	REX ENERGY OPERATING CORP.

 
			
		
	By:	 	 /s/ Tom Stabley

	Name:	 	Thomas C. Stabley
	Title:	 	President & Chief Executive Officer

 
			
	
	R.E. GAS DEVELOPMENT, LLC

 
			
		
	By:	 	 /s/ Tom Stabley

	Name:	 	Thomas C. Stabley
	Title:	 	President & Chief Executive Officer

 [Signature Page
to Restructuring Support Agreement] 

 
			
	ADMINISTRATIVE AGENT
	
	ANGELO, GORDON ENERGY SERVICER, LLC

 
			
		
	By:	 	 /s/ Todd Dittmann

	Name:	 	Todd Dittmann
	Title:	 	Authorized Person

 
			
	
	CONSENTING LENDERS
	
	AG ENERGY FUNDING, LLC

 
			
		
	By:	 	 /s/ Todd Dittmann

	Name:	 	Todd Dittmann
	Title:	 	Authorized Person

 
			
	
	CANYON VALUE REALIZATION FUND L.P.

 
			
		
	By:	 	 Canyon Capital Advisors, LLC
 its Investment
Advisor

		
	By:	 	 /s/ Jonathan M. Kaplan

	Name:	 	Jonathan M. Kaplan
	Title:	 	Authorized Signatory

 
			
	
	CANYON DISTRESSED OPPORTUNITY MASTER FUN II, L.P.

 
			
		
	By:	 	 Canyon Capital Advisors, LLC
 its Investment
Advisor

		
	By:	 	 /s/ Jonathan M. Kaplan

	Name:	 	Jonathan M. Kaplan
	Title:	 	Authorized Signatory

 
			
	
	CANYON DISTRESSED OPPORTUNITY INVESTING FUND II, L.P.

 
			
		
	By:	 	 Canyon Capital Advisors, LLC
 its Investment
Advisor

		
	By:	 	 /s/ Jonathan M. Kaplan

	Name:	 	Jonathan M. Kaplan
	Title:	 	Authorized Signatory

 
			
	
	CANYON NZ-DOF INVESTING, L.P.

 
			
		
	By:	 	 Canyon Capital Advisors, LLC
 its Investment
Advisor

		
	By:	 	 /s/ Jonathan M. Kaplan

	Name:	 	Jonathan M. Kaplan
	Title:	 	Authorized Signatory

 [Signature Page to Restructuring
Support Agreement] 

			
	
	MSD CREDIT OPPORTUNITY FUND, L.P.
		
	By:	 	 /s/ Marcello Liguori

	Name:	 	Marcello Liguori
	Title:	 	Managing Director
	
	TAO TALENTS, LLC
		
	BY:	 	 /s/ Joshua Easterly

	NAME:	 	Joshua Easterly
	TITLE:	 	Vice President
	
	TPG SPECIALTY LENDING, INC.
		
	BY:	 	 /s/ Joshua Easterly

	NAME:	 	Joshua Easterly
	TITLE:	 	Chief Executive Officer
	
	AB PRIVATE CREDIT INVESTORS MIDDLE MARKET DIRECT LENDING FUND, L.P.
		
	BY:	 	 /s/ Kevin Alexander

	NAME:	 	Kevin Alexander
	TITLE:	 	Vice President

 
			
	
	AB ENERGY OPPORTUNITY FUND, L.P.

 
			
		
	BY:	 	 /s/ Daniel Posner

	NAME:	 	Daniel Posner
	TITLE:	 	Co-Chief Investment Officer

 [Signature Page to Restructuring Support Agreement] 

 
			
	CONSENTING NOTEHOLDERS
	
	FRANKLIN ADVISERS, INC.,
	
	As investment manager solely on behalf of the funds and accounts identified on Schedule 1 to this signature page.
		
	By:	 	 /s/ Ed Perks

	Name:	 	Ed Perks
	Title:	 	E.V.P.

 [Signature Page to Restructuring Support Agreement] 

 
			
	LOOMIS, SAYLES & COMPANY, L.P.,
	
	As investment manager on behalf of certain funds and accounts
	
	By Loomis, Sayles & Company, Incorporated, its General Partner
		
	By:	 	 /s/ Thomas H. Day

	Name:	 	Thomas H. Day
	Title:	 	Assistant General Counsel

 [Signature Page to Restructuring Support Agreement] 

 
			
	MACKAY SHIELDS LLC
	
	As investment manager on behalf of certain funds and accounts
		
	By:	 	 /s/ Young Lee

	Name:	 	Young Lee
	Title:	 	Senior Managing Director

 Exhibit B 

Restructuring Term Sheet 

 Execution Version 

REX ENERGY CORPORATION 

YIELD MAINTENANCE/CALL PROTECTION SETTLEMENT 

AND 
 RESTRUCTURING TERM
SHEET 
 THIS TERM SHEET, INCLUDING ALL EXHIBITS HERETO, IS THE “RESTRUCTURING TERM SHEET” REFERENCED IN THE RESTRUCTURING SUPPORT AGREEMENT
TO WHICH THIS TERM SHEET IS ATTACHED AS EXHIBIT B. ALL CAPITALIZED TERMS USED BUT NOT DEFINED IN THIS TERM SHEET SHALL HAVE THE MEANINGS ASCRIBED TO SUCH TERMS IN THE RESTRUCTURING SUPPORT AGREEMENT. 

 

			
	Yield Maintenance/Call Protection Settlement Amount	  	 •  $50 million, which amount shall be reduced on a dollar-for-dollar basis by up to $5 million on account of any post-petition interest accrued and paid in cash on the principal balance of $261,315,322 outstanding under
the First Lien Credit Agreement (whether the $261,315,322 remains as prepetition principal or is “rolled-up” into a DIP Facility) (such reduced amount being no less than $45 million, the
“Minimum MW Amount”); provided that, if the holders of Second Lien Notes1 receive a recovery (in cash or Liquid
Securities2 (or another instrument subject to a short-term put right in favor of the holders of Second Lien Notes entitling them to receive cash or Liquid Securities) (other than through a credit
bid)) on account of their Second Lien Notes as a result of the 363 sale or pursuant to a plan of reorganization or

  
  

	1 	“Second Lien Notes” shall mean the notes issued under that certain Indenture, dated as of March 31, 2016, for the Company’s 1.00%/8.00% Senior Secured Second Lien Notes due 2020. 

	2 	 For purposes of this provision, the Consenting Noteholders, the Administrative Agent and the Consenting Lenders,
acting reasonably and in good faith, will agree on what equity and debt securities constitute “Liquid Securities” taking into consideration, among other things, whether the issuer is a public reporting company and, with respect to equity
securities, whether such securities are registered and listed on a national securities exchange, the market capitalization of the issuer and the average daily trading volume of such securities for the twenty (20) Business Days preceding the
date on which the valuation is determined; and with respect to debt securities, whether such securities are registered and the tranche size of such securities. Notwithstanding the foregoing, if the parties cannot agree despite their good faith
efforts whether the debt and/or equity securities constitute “Liquid Securities”, the increase in the Minimum MW Amount attributable to such securities shall not be paid to the First Lien Lenders in cash, but in such securities (including,
if both debt and equity securities are involved, in the same ratio as received as consideration in the Sale or Plan) with the amount to be paid and the value thereof being based on the value ascribed to such securities in the auction of the
Debtors’ assets. 

			
		  	 liquidation during the Debtors’ chapter 11 cases in excess of 40% of the outstanding principal amount of the
Second Lien Notes (e.g., $235 million) (such recovery, the “2L Recovery Threshold”), then the Minimum MW Amount shall be increased by, and the First Lien Lenders3 shall be
entitled to, every dollar above the 2L Recovery Threshold, on a dollar-for-dollar basis up to a maximum amount of $10.5 million (such increased amount being no more
than $55.5 million, the “Maximum MW Amount” and the amount calculated in accordance with this paragraph shall be the “Make Whole Amount”), which Make Whole Amount shall remain senior in all respects to the
claims in respect of the Second Lien Notes.
  

•  Unless the MW Settlement Termination Event occurs, the Make Whole Amount shall be the maximum
amount asserted on account of any Yield Maintenance Amount, Call Protection Amount, make-whole amount, prepayment premium, or any other similar fee that may be asserted under the First Lien Credit Agreement, and the Make Whole Amount shall be “rolled-up” as part of the DIP Facility (subject to adjustment in accordance with this Term Sheet).
  

•  All accrued prepetition interest on the prepetition balance of the First Lien Credit Agreement
(other than amounts on account of the Make Whole Amount) shall be paid in full in cash on the closing of the DIP Facility.
  

•  The First Lien Lenders shall waive any interest on the Make Whole Amount upon consummation of a
sale or plan in accordance with the RSA unless a MW Settlement Termination Event has occurred.
  

•  If there is a successful Challenge (as defined in the DIP Orders) (other than a Challenge asserted
in violation of the Restructuring Support Agreement) that results in a final determination of the Yield Maintenance Amount and Call Protection Amount to be less than the Minimum MW Amount, and following such successful Challenge the Restructuring
Support

  
  

	3 	“First Lien Lenders” shall mean the lenders under the Company’s Term Loan Credit Agreement, dated as of April 28, 2017 (the “First Lien Credit Agreement”). 

  
 2 

			
		  	 Agreement remains in full force and effect, the holders of the Second Lien Notes shall not be required to satisfy
any such disallowed obligations from their own recovery (whether as a result of the turnover provisions of Second Lien Intercreditor Agreement or under any other legal or contractual theory) and for all purposes hereunder, the Restructuring Support
Agreement, the DIP Credit Agreement and the DIP Orders, the “Make Whole Amount” shall mean such amount of the Yield Maintenance Amount and Call Protection Amount as finally determined.

		
	Adequate Protection	  	 •  Holders of Second Lien Notes to receive replacement liens and 507(b)
administrative claims as adequate protection (on a junior basis to the liens and claims of the First Lien Lenders), as well as payment of reasonable and documented professional fees, which fees may not be used to challenge the validity, priority and
enforceability of the First Lien Lender claims or liens.

		
	363 Sale Process	  	 •  The First Lien Lenders shall be permitted to credit bid up to the sum of:
(a) the principal amount then outstanding under the First Lien Credit Agreement (excluding the Make Whole Amount), if any, plus any accrued and unpaid interest thereon determined as of the closing date, plus (b) the principal
amount outstanding under the DIP Facility, plus accrued and unpaid interest thereon determined as of the closing date, (excluding any “rolled up” Make Whole Amount), plus (c) the Make Whole Amount (the
“Credit Bid Amount”).
  

•  The Debtors shall establish a Reserve Price for the sale. “Reserve Price” means
the sum of (a) the Credit Bid Amount, plus (b) all outstanding fees and expenses due under the DIP Facility, plus (c) any other Secured Obligations outstanding, if any, under the First Lien Credit Agreement
or the DIP Credit Agreement on account of any terminated secured swap agreement, plus (d) an additional overbid amount sufficient to fund the wind down of the Debtors’ estates to the extent such amounts are not funded through
the DIP Facility, which amount shall not be greater than $5,000,000 unless agreed to by the Administrative Agent and the Required Consenting Noteholders after good faith consultation between their respective advisors and the advisors of the Debtors
(such amount, the “Wind Down Amount”).

  
 3 

			
		  	 •  If the Reserve Price is not satisfied, the Debtors will pursue confirmation
of a plan of reorganization as set forth on Exhibit A hereto described under “Path 2”.
  

•  A “qualified bid” must include a customary good faith deposit4, not be subject to any diligence or financing conditions and satisfy other customary terms and conditions and must provide for a cash payment, at closing, to the First Lien Lenders equal to the sum
of (x) the Credit Bid Amount, plus (y) any outstanding fees and expenses due and payable under the DIP Facility, plus (z) any other Secured Obligations outstanding, if any, under the First Lien
Credit Agreement or the DIP Credit Agreement on account of a terminated secured swap agreement (collectively, the “First Lien Pay Off Amount”) plus the funding of the Wind Down Amount to the Debtors.

 
 •  Holders of Second Lien Notes
shall be entitled to credit bid if such bid otherwise meets the conditions of a “qualified bid” under the bid procedures and provides for the payment in cash of the First Lien Pay Off Amount to the First Lien Lenders at closing, which is
to occur no later than 170 days after the Petition Date, plus funding of the Wind Down Amount to the Debtors. The First Lien Lenders agree to support and not to object or interfere (either directly or indirectly) with such credit bid.

 
 •  First Lien Lenders and
Consenting Noteholders shall cooperate in good faith during the sales process and both parties shall have equal access to information and diligence.

  
  

	4 	A bid submitted by the holders of Second Lien Notes, or their trustee or designee, may, in lieu of a cash deposit, provide a several and not joint performance guarantee (or a combination of a cash deposit and a several
and not joint performance guarantee) by the Consenting Noteholders in an amount not to exceed $20 million. 

  
 4 

			
		  	 •  Bidding Procedures to be acceptable to the First Lien Lenders and Consenting
Noteholders and to provide for the following:
  

•  The potential to credit bid by the First Lien Lenders and the establishment of the Reserve Price;
provided, however, the First Lien Lenders agree, and the Bidding Procedures shall provide, that the First Lien Lenders will not submit any bid that is in excess of the Credit Bid Amount plus the funding of the Wind Down Amount to the
Debtors;
  
 •  Access to due
diligence by the Consenting Noteholders and any potential financing sources selected by the Consenting Noteholders; and
  

•  All bids to be provided to the First Lien Lenders and Consenting Noteholders within 24 hours of
receipt by the Debtors.

		
	 Case and Sale Milestones
	  	 •  To be agreed and acceptable to the First Lien Lenders and Consenting
Noteholders but shall include the following milestones in addition to milestones set forth in the RSA (unless otherwise agreed by the First Lien Lenders and Consenting Noteholders);

 
 1.  Within 50 days of the Petition
Date: entry of bid procedures order
  

2.  Within 115 days of the Petition Date: bid deadline

 
 3.  Within 125 days of the Petition
Date: auction date
  
 4.  Within 170
days of the Petition Date: closing and Plan effective date.

		
	 DIP Facility
	  	 •  First Lien Lenders to provide $100 mm new money DIP Facility, plus a roll-up of the principal outstanding under First Lien Credit Agreement (i.e., $261,315,322 and the Make Whole Amount (as may be adjusted in accordance with the terms hereof)).

 
 •  Interest Rate and Fees as set
forth in the DIP Term Sheet dated April 18, 2018.
  

•  6 month maturity date.

  
 5 

			
		  	 •  Notwithstanding anything to the contrary in this Term Sheet, the failure of
the DIP Facility to include a roll-up shall not impact the effectiveness of the settlement herein, provided, however, the Consenting Noteholders agree to support and not to object to the roll-up of the principal amount outstanding under the First Lien Credit Agreement, including the Make Whole Amount (as may be adjusted in accordance with the terms hereof).

  
 6 

 Exhibit A: 

PLAN TERM SHEET 

  
 7 

 Execution Version 

Exhibit A 
 REX ENERGY
CORPORATION 
 PLAN TERM SHEET 

THIS TERM SHEET IS PRELIMINARY, NON-BINDING, AND SUBJECT TO DEFINITIVE DOCUMENTATION. THIS TERM SHEET IS INTENDED
SOLELY FOR DISCUSSION PURPOSES AND IS NOT A COMPLETE LIST OF THE TERMS AND CONDITIONS OF ANY POTENTIAL TRANSACTION. THE TRANSACTIONS CONTEMPLATED HEREIN ARE HYPOTHETICAL, AND ALL TERMS HEREIN REMAIN SUBJECT TO CHANGE IN ALL RESPECTS. 

 

			
	Plan of Reorganization or Liquidation:	  	 This term sheet is attached to the Restructuring Term Sheet and deemed incorporated therein. Concurrently with the sale process
contemplated in the Restructuring Support Agreement and the Restructuring Term Sheet, the Debtors shall pursue confirmation of a plan of reorganization or liquidation having the terms described below and that is otherwise reasonably satisfactory to
the Debtors, Administrative Agent, the Required Consenting Noteholders and the Required Consenting Lenders (the “Plan”).
  

As described below, the treatment contemplated by the Plan depends on whether the Debtors successfully sell all or substantially all of their assets (the
“Purchased Assets”) pursuant to the sale process contemplated in this Restructuring Term Sheet (“Path 1”) or if the Debtors do not obtain a bid in excess of the Reserve Price (or are unable to close such
transaction) (“Path 2”).

		
	Effective Date:	  	 The date the Plan becomes effective (the “Effective Date”) shall be the date on which all the conditions to consummation
of the Plan have been satisfied in full or waived.
  
 Conditions to consummation shall
include, among other things, for:
  

•  Path 1, the closing of the applicable sale (unless the sale is to be implemented through the
Plan), entry of a confirmation order (in form and substance reasonably satisfactory to the Debtors, and the Required Consenting Noteholders) and such other conditions as are customary for transactions of this nature, and are acceptable to the
Debtors and the Required Consenting Noteholders.1

  
  

	1 	To the extent that the DIP Facility Claims and First Lien Lender claims have not been paid in full prior to consummation of the Plan in accordance with the Restructuring Term Sheet pursuant to Path 1, the conditions to
confirmation and consummation shall also be acceptable to the Administrative Agent and Required Consenting Lenders. 

			
		  	 •  Path 2, receipt of all necessary regulatory approvals and third party
consents, no material adverse effect, confirmation of tax treatment of reorganization, closing of an emergence credit facility, entry of a final non-appealable confirmation order (in form and substance
reasonably satisfactory to the Debtors, Administrative Agent and the Required Consenting Lenders) and such other conditions as are customary for transactions of this nature, and are acceptable to the Debtors, Administrative Agent and the Required
Consenting Lenders.
  
 Subject to the terms and conditions of the Restructuring Term
Sheet and the Restructuring Support Agreement, in the event the Required Consenting Noteholders credit bid the allowed Second Lien Note Claims at auction and are the successful bidder, the Required Consenting Noteholders, may elect, in lieu of
consummating the purchase agreement related to such credit bid, to pursue a Plan under Path 1 to effect the distribution to holders of allowed Second Lien Note Claims of 100% of the equity in the reorganized Debtors (such plan treatment, the
“Second Lien Equitization Treatment”). For the avoidance of doubt, any Plan that provides for the Second Lien Equitization Treatment shall be implemented in accordance with Path 1 (including with respect to repayment in full in cash
of DIP Facility Claims and First Lien Lender Claims no later than 170 days after the Petition Date) and the treatment of Second Lien Note Claims shall be modified accordingly.

		
	Path 1: Treatment if the assets are sold pursuant to sale process described in the Restructuring Term Sheet:	  	 •  DIP Facility Claims and First Lien Lender Claims: the DIP Facility
claims and First Lien Lender claims shall be indefeasibly satisfied on the closing of the sale of the Purchased Assets by payment in full in cash of such claims as described in the Restructuring Term Sheet (which may occur simultaneously with
consummation of the Plan, provided any such Plan must provide for the effective date to occur no later than 170 days after the Petition Date).

		  	

  
 2 

			
		 	 •  Administrative and Priority Claims: on the applicable distribution
date, the allowed administrative and priority claims shall be paid in full in cash from the Wind Down Amount. The Debtors shall establish an administrative bar date reasonably satisfactory to the Administrative Agent and the Required Consenting
Noteholders.
  
 •  Second
Lien Note Claims: unless the holders of Second Lien Notes are the successful bidders for the Purchased Assets, on the Effective Date, the holders of Second Lien Notes shall receive any remaining proceeds of the Purchased Assets after payment of:
(1) the First Lien Payoff Amount, (2) any other secured claims that are determined to be secured by liens senior to the liens securing the Second Lien Notes and (3) the Wind Down Amount. For the avoidance of doubt, if the holders of
Second Lien Notes are the successful bidders for the Purchased Assets, the treatment for Second Lien Note Claims shall be modified in accordance with the successful bid.
  

•  General Unsecured Claims (including Unsecured Note Claims2 and any unsecured deficiency portion of the Second Lien Note Claims (if applicable): on the applicable distribution date, holders of allowed General Unsecured Claims shall receive: (a) their
ratable share of remaining proceeds from the sale of the Purchased Assets after payment of Second Lien Note Claims in full; and (b) their ratable interests in the Liquidating Trust.

 
 •  Equity Interests and
510(b) Claims: on the Effective Date, the existing equity interests in the Debtors (other than intercompany equity) shall be cancelled and the holders thereof shall receive no distributions, and holders of claims under Section 510(b) of the
Bankruptcy Code shall receive no recovery.

		 	

  
  

	2 	Unsecured Note Claims shall mean claims arising under: (a) that certain indenture dated as of July 14, 2014 (as amended, supplemented, amended and restated, or otherwise modified from time to time), by and
among the Company, the guarantors named therein, and Wilmington Trust, National Association as trustee, comprised of 6.250% Senior Notes due 2022; and (b) that certain indenture dated as of December 12, 2012 (as amended, supplemented,
amended and restated, or otherwise modified from time to time), by and among the Company, the guarantors named therein, and Wilmington Trust, National Association as trustee, comprised of 8.875% Senior Notes due 2020. 

  
 3 

			
	Path 2: Treatment if the assets are not sold pursuant to sale process described in the Restructuring Term Sheet:	  	 •  DIP Facility Claims and First Lien Facility Claims: on the Effective
Date, the DIP Lenders and First Lien Lenders shall receive on account of their DIP Facility claims and the First Lien Lender claims, 100% of the equity in the reorganized Debtors (in which all of the Debtors’ assets shall vest free and clear of
all claims, interests and encumbrances) (the “Reorganized Debtors”); provided cash in an amount equal to the Wind Down Amount shall be contributed by the DIP Lenders to the Liquidating Trust. The DIP Lenders and First Lien
Lenders retain the right to effectuate the acquisition of the Debtors’ assets through a credit bid in accordance with the terms and conditions of the Restructuring Support Agreement and Restructuring Term Sheet.

 
 •  At the election of the
Required Consenting Lenders, the Reorganized Debtors also may issue the DIP Lenders and First Lien Lenders new first lien notes.
  

•  In addition, the DIP Lenders and the First Lien Lenders shall arrange an appropriate emergence
credit facility.
  

•  Administrative and Priority Claims: on the applicable distribution date, the allowed
administrative and priority unsecured claims shall be paid in full in cash from the Wind Down Amount. The Debtors shall establish an administrative bar date reasonably satisfactory to the Administrative Agent.

 
 •  Second Lien Note
Claims: on the applicable distribution date, the holders of the Second Lien Note Claims shall receive their ratable interest in the Liquidating Trust. The holders of Second Lien Note Claims shall waive their superpriority administrative claims
arising under the DIP Orders or otherwise on account of adequate protection.
  

•  General Unsecured Claims: on the applicable distribution date, the holders of allowed
General Unsecured Claims shall receive their ratable interests in the Liquidating Trust.
  

•  Intercompany Claims: The Administrative Agent, in consultation with the Required Consenting
Lenders, shall determine whether to cancel or reinstate any Intercompany Claims.
  

•  Equity Interests and 510(b) Claims: on the Effective Date, the existing equity interests in
the Debtors (other than intercompany equity) shall be cancelled and the holders thereof shall receive no recovery, and holders of claims under Section 510(b) of the Bankruptcy Code shall receive no recovery.

		  	

  
 4 

			
	Management Incentive Plan:	  	If Path 2 is effectuated by the Plan, the Reorganized Debtors shall adopt a management incentive plan approved by the new board of directors of the Reorganized Debtors, which could be one or more of a cash bonus pool, or direct
equity grants, options, restricted stock, or phantom equity of up to 10% of Reorganized Debtors, with customary vesting schedules, as applicable.
		
	Liquidating Trust:	  	 A liquidating trust (the “Liquidating Trust”) shall be established on the Effective Date.

 
 Any assets of the Debtors not sold (under Path 1) or not transferred to the Reorganized
Debtors (under Path 2) and not otherwise abandoned shall be transferred to the Liquidating Trust on the Effective Date (the “Liquidating Trust Assets”). The Liquidating Trust Assets shall include (a) cash equal to the Wind Down
Amount that will fund the administration of the Liquidation Trust and payment of administrative expense and priority unsecured claims, and (b) claims and causes of action of the Debtors that in Path 2 the Debtors and the Administrative Agent
agree shall not vest with the Reorganized Debtors, provided, however, the Liquidating Trust Assets shall not include any claims under chapter 5 of the Bankruptcy Code assertable against any party continuing to do business with or employed by
the Reorganized Debtors or against any released party.

		
	Corporate Governance:3	  	If Path 2 is effectuated by the Plan, the governance documents with respect to the Reorganized Debtors shall be in form and substance satisfactory to the Debtors, Administrative Agent and the Required Consenting Lenders (it being
agreed such governance documents shall provide for ratable allocation of economic rights and voting rights among Consenting Lenders).
		  	

  
  

	3 	To the extent that the holders of Second Lien Notes are the successful bidders and implement the Restructuring Transaction through a plan of reorganization, there shall be corresponding changes to Corporate Governance,
Executory Contracts and Unexpired Leases, and Tax Matters to provide consent rights to the Required Consenting Noteholders. 

  
 5 

			
	Executory Contracts and Unexpired Leases:4	  	If Path 2 is effectuated by the Plan, the Administrative Agent and the Required Consenting Lenders shall have the right to determine which executory contracts and unexpired leases shall be assumed or rejected in consultation with
the Debtors.
		
	Tax Matters:	  	 If Path 2 is effectuated by the Plan, the restructuring and the transactions related thereto will be structured in a tax efficient manner
for the Reorganized Debtors and the First Lien Lenders, as determined by the Administrative Agent and the Debtors.
  

The Plan in Path 2 shall provide for the option for a reorganization through a transfer of the Debtors’ assets to newly formed entities in order to effect
a tax-efficient reorganization structure.

		
	Releases and Exculpation:	  	 The Plan shall provide for customary Debtor and third party releases in favor of the Debtors, Administrative Agent, the First Lien
Lenders, the DIP Lenders, the Indenture Trustee, the Consenting Noteholders and their respective professionals and related parties, in each case, in form and substance reasonably satisfactory to the Debtors, Administrative Agent, the Consenting
Lenders and the Consenting Noteholders.
  
 The Plan shall also include customary
exculpation provisions for the estate fiduciaries.

		
	Discharge	  	The Plan shall provide for the full and complete discharge of all prepetition obligations.
		
	Injunction	  	Ordinary and customary injunction.

  
  

	4 	Any successful bidder for the Purchased Assets under Path 1 shall have the right to determine which executory contracts and unexpired leases shall be assumed or rejected by the Debtors. 

  
 6 

 Exhibit C 

Form of Joinder 
 This joinder
agreement (“Joinder”) to the Restructuring Support Agreement (the “Agreement”), dated as of May 17, 2018, by and among the following: (i) Rex Energy Corporation
(“Rex”), a company incorporated in the State of Delaware, and each of the undersigned direct and indirect subsidiaries of Rex (collectively with Rex, the “Company” or the
“Debtors”) and (ii) the other parties thereto is executed and delivered by [                    ] (the
“Joining Party”) as of [                    ]. Capitalized terms used but not defined herein shall have the meanings set
forth in the Agreement. 
 1.    Agreement to be Bound. The Joining Party hereby agrees to be bound by all of the
terms of the Agreement (as the same has been or may be hereafter amended, restated, or otherwise modified from time to time in accordance with the provisions thereof). The Joining Party shall hereafter be deemed to be a Party for all purposes under
the Agreement and one or more of the entities comprising the Consenting Lenders or Consenting Noteholders, as applicable. 

2.    Representations and Warranties. The Joining Party hereby represents and warrants to each other Party to the
Agreement that, as of the date hereof, such Joining Party (a) is the legal or beneficial holder of, and has all necessary authority (including authority to bind any other legal or beneficial holder) with respect to, the claims identified below
its name on the signature page hereof, and (b) makes, as of the date hereof, the representations and warranties set forth in Section 6 of the Agreement to each other Party. 

3.    Governing Law. This Joinder shall be governed by and construed in accordance with the internal laws of the
State of New York, without regard to any conflicts of law provisions which would require or permit the application of the law of any other jurisdiction. 

4.    Notice. All notices and other communications given or made pursuant to the Agreement shall be sent to: 

To the Joining Party at: 

[JOINING PARTY] 
 [ADDRESS] 

Attn: 
 Facsimile: 

EMAIL: 

 IN WITNESS WHEREOF, the Joining Party has caused this Joinder to be executed as of the date first written above.

  

			
	[JOINING PARTY]

 
			
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 
			
	
	First Lien Loans (principal amount):

 
			
		
	 $
	 	  

			
	
	Aggregate Principal Amount of Second Lien Notes Held Beneficially

 
			
		
	 $

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