Document:

EX-10.1

 Exhibit 10.1 
 INDEPENDENT DIRECTOR AGREEMENT 
 THIS INDEPENDENT DIRECTOR AGREEMENT is
made effective as of the 29th day of July, 2013 (the “Agreement”), between REX ENERGY CORPORATION, a Delaware corporation with an address at 366 Walker Drive, State College, Pennsylvania 16801 (the “Company”), and TODD N. TIPTON
(“Director”). 
 WHEREAS, it is essential to the Company to retain and attract as directors the most capable persons
available to serve on the board of directors of the Company (the “Board”). 
 WHEREAS, the Company believes that
Director possesses the necessary qualifications and abilities to serve as a director of the Company and to perform the functions and meet the Company’s needs related to its Board. 

NOW, THEREFORE, in consideration of the mutual promises contained herein, the benefits to be derived by each party hereunder and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

1. Service as Director. Director will serve as a director of the Company and perform all duties as a director of the Company,
including without limitation (a) attending meetings of the Board, (b) serving on one or more committees of the Board (each a “Committee”) and attending meetings of each Committee of which Director is a member, and (c) using
reasonable efforts to promote the business of the Company. The Company currently intends to hold at least one in-person regular meeting of the Board and each Committee each quarter, together with additional meetings of the Board and Committees as
may be required by the business and affairs of the Company. In fulfilling his responsibilities as a director of the Company, Director agrees that he shall act honestly and in good faith with a view to the best interests of the Company and exercise
the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. 
 2. Compensation
and Expenses. 
 (a) Board Compensation. For the services provided to the Company as a director, the Director will be
entitled to the compensation provided for in the Director Compensation Plan of the Company, as that plan may be amended, modified or replaced from time to time. 
 (b) Expenses. Upon submission of appropriate receipts, invoices or vouchers as may be reasonably required by the Company, the Company will reimburse Director for all reasonable out-of-pocket
expenses incurred in connection with the performance of Director’s duties under this Agreement. 
 (c) Other
Benefits. The Board (or its designated Committee) may from time to time authorize additional compensation and benefits for Director, including additional compensation for service as chairman of a Committee and awards under any stock incentive,
stock option, stock compensation or long-term incentive plan of the Company, including, without limitation, the Company’s Amended and Restated 2007 Long Term Incentive Plan or any other plan that may later be established by the Company.

 3. Director and Officer Liability Insurance. To the extent the Company maintains an
insurance policy or policies providing directors’ and officers’ liability insurance, Director shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any of
the Company’s directors or officers. 
 4. Limitation of Liability; Right to Indemnification. Director shall be
entitled to limitations of liability and the right to indemnification against expenses and damages in connection with claims against Director relating to his service to the Company to the fullest extent permitted by the Company’s Certificate of
Incorporation and Bylaws (as such documents may be amended from time to time), the General Corporation Law of the State of Delaware and other applicable law. 
 5. Amendments and Waiver. No supplement, modification or amendment of this Agreement will be binding unless executed in writing by both parties. No waiver of any provision of this Agreement on a
particular occasion will be deemed or will constitute a waiver of that provision on a subsequent occasion or a waiver of any other provision of this Agreement. 
 6. Binding Effect. This Agreement will be binding upon and inure to the benefit of and be enforceable by the parties and their respective successors and assigns. 

7. Severability. The provisions of this Agreement are severable, and any provision of this Agreement that is held by a court of
competent jurisdiction to be invalid, void, or otherwise unenforceable in any respect will not affect the validity or enforceability of any other provision of this Agreement. 
 8. Governing Law. This Agreement will be governed by and construed and enforced in accordance with the laws of the State of Delaware applicable to contracts made and to be performed in that state
without giving effect to the principles of conflicts of laws. 
 9. Entire Agreement. This Agreement constitutes the
entire understanding between the parties with respect to the subject matter hereof, superseding all negotiations, prior discussions and prior agreements and understanding relating to such subject matter. 

10. Miscellaneous. This Agreement may be executed by the Company and Director in any number of counterparts, each of which shall
be deemed an original instrument, but all of which together shall constitute but one and the same instrument. Any party may execute this Agreement by facsimile signature and the other party will be entitled to rely on such facsimile signature as
evidence that this Agreement has been duly executed by such party. Any party executing this Agreement by facsimile signature will promptly forward to the other party an original signature page by overnight courier. Director acknowledges that this
Agreement does not constitute a contract of employment and does not imply that the Company will continue his service as a director for any period of time. 

  
 -2-

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date shown above.

  

			
	REX ENERGY CORPORATION
		
	By:	 	 /s/ Thomas C. Stabley

	Name:	 	Thomas C. Stabley
	Title:	 	Chief Executive Officer
	
	 /s/ Todd N. Tipton

	Todd N. Tipton

  
 -3-EX-10.1

 Exhibit 10.1 
 RESOLUTIONS IN CONNECTION WITH $22.00 DIVIDEND 
 Adjustment of AOP
Targets in Outstanding Option Awards 
 WHEREAS, the Company declared in July 2013 an extraordinary dividend of $22.00 to
stockholders (the “Dividend”); 
 WHEREAS, the outstanding stock option agreements under the Plan contemplate that the
AOP targets may be adjusted based on specified events, including an extraordinary dividend, in order to prevent dilution of the benefits intended to be provided to participants under the Plan; 

WHEREAS, the Committee has determined that the AOP targets in the outstanding stock option agreements should be adjusted to take into
account the effects of the Dividend; 
 NOW, THEREFORE, be it 

Five Year 2012 Options 
 RESOLVED, that by virtue of the authority vested in the Committee pursuant to each of the outstanding stock option agreements granted in fiscal 2012 with vesting over five years and in effect as of the
date hereof under the Plan (the “Five Year 2012 Outstanding Option Agreements”), the Committee hereby amends the table in Exhibit B to all of such Five Year 2012 Outstanding Option Agreements by deleting the existing table and substituting
therefor the following: 

 Annual Operational Performance per Diluted Share 

 

																	
	 	  	Minimum Vesting
(10% Growth)	 	  	Maximum Vesting
(17.5% Growth)	 
	 Fiscal Year (A)
	  	% of Shares
Vesting
(B)	 	 	YE Operating
Performance
(per Diluted Share)
(C)	 	  	% of Shares
Vesting
(D)	 	 	YE Operating
Performance
(per Diluted Share)
(E)	 
	 2013
	  	 	5	% 	 	$	41.06	  	  	 	20	% 	 	$	51.16	  
	 2014
	  	 	5	% 	 	$	45.17	  	  	 	20	% 	 	$	60.12	  
	 2015
	  	 	5	% 	 	$	49.69	  	  	 	20	% 	 	$	70.64	  
	 2016
	  	 	5	% 	 	$	54.65	  	  	 	20	% 	 	$	83.00	  

 Five Year 2013 Options 
 RESOLVED, that by virtue of the authority vested in the Committee pursuant to each of the outstanding stock option agreements granted in fiscal 2013 with vesting over five years and in effect as of the
date hereof under the Plan (the “Five Year 2013 Outstanding Option Agreements”), the Committee hereby amends the table in Exhibit B to all of such Five Year 2013 Outstanding Option Agreements by deleting the existing table and substituting
therefor the following: 

 Annual Operational Performance per Diluted Share 

 

																	
	 	  	Minimum Vesting
(10% Growth)	 	  	Maximum Vesting
(17.5% Growth)	 
	 Fiscal Year (A)
	  	% of Shares
Vesting
(B)	 	 	YE Operating
Performance
(per Diluted Share)
(C)	 	  	% of Shares
Vesting
(D)	 	 	YE Operating
Performance
(per Diluted Share)
(E)	 
	 2013
	  	 	5	% 	 	$	69.65	  	  	 	20	% 	 	$	75.75	  
	 2014
	  	 	5	% 	 	$	76.61	  	  	 	20	% 	 	$	89.00	  
	 2015
	  	 	5	% 	 	$	84.27	  	  	 	20	% 	 	$	104.58	  
	 2016
	  	 	5	% 	 	$	92.70	  	  	 	20	% 	 	$	122.88	  
	 2017
	  	 	5	% 	 	$	101.97	  	  	 	20	% 	 	$	144.39	  

 Extension Options 
 RESOLVED, that by virtue of the authority vested in the Committee pursuant to each of the outstanding stock option agreements with vesting over 2015-16 and in effect as of the date hereof under the Plan
(the “2015-16 Extension Outstanding Option Agreements”), the Committee hereby amends the table in Exhibit B to all of such Extension Outstanding Option Agreements by deleting the existing table and substituting therefor the following:

 Annual Operational Performance per Diluted Share 

 

																	
	 	  	Minimum Vesting
(10% Growth)	 	  	Maximum Vesting
(17.5% Growth)	 
	 Fiscal Year
 (A)
	  	% of Shares
Vesting
(B)	 	 	YE Operating
Performance
(per Diluted Share)
(C)	 	  	% of Shares
Vesting
(D)	 	 	YE Operating
Performance
(per Diluted Share)
(E)	 
	 2015
	  	 	12.5	% 	 	$	49.69	  	  	 	50	% 	 	$	70.64	  
	 2016
	  	 	12.5	% 	 	$	54.65	  	  	 	50	% 	 	$	83.00	  

 RESOLVED FURTHER, that by virtue of the authority vested in the Committee pursuant to each of the
outstanding stock option agreements with vesting over 2016-17 and in effect as of the date hereof under the Plan (the “2016-17 Extension Outstanding Option Agreements”), the Committee hereby amends the table in Exhibit B to all of such
Extension Outstanding Option Agreements by deleting the existing table and substituting therefor the following: 
 Annual
Operational Performance per Diluted Share 
  

																	
	 	  	Minimum Vesting
(10% Growth)	 	  	Maximum Vesting
(17.5% Growth)	 
	 Fiscal Year
 (A)
	  	% of Shares
Vesting
(B)	 	 	YE Operating
Performance
(per Diluted Share)
(C)	 	  	% of Shares
Vesting
(D)	 	 	YE Operating
Performance
(per Diluted Share)
(E)	 
	 2016
	  	 	12.5	% 	 	$	92.70	  	  	 	50	% 	 	$	122.88	  
	 2017
	  	 	12.5	% 	 	$	101.97	  	  	 	50	% 	 	$	144.39	  

 Carry-Forwards and Carry Backs 

RESOLVED, for each 2015-16 Extension Outstanding Option Agreement, the Committee hereby amends paragraph 1.Y of Exhibit B of all such
2015-16 Extension Outstanding Option Agreements by deleting the text thereof and replacing it as follows: 

“Y. In calculating the AOP in Section X. above for any performance year there shall also be taken into account any
AOP in any of the two prior performance years (starting in fiscal year 2013) which was in excess of the amount indicated in Column (E) or set forth in the following sentence for such prior year and has not previously been taken into account
hereunder or under any other option agreement to which the Participant is a party but only if doing so would increase the Annual Amount in such performance year. For purposes of determining whether AOP has been exceeded and the amount of any excess,
the YE Operating Performance per Diluted Share applicable to 2013 shall be $51.16 and to 2014 shall be $60.12.” 

RESOLVED, for each 2016-17 Extension Outstanding Option Agreement, the Committee hereby amends paragraph 1.Y of Exhibit B of all such
2016-17 Extension Outstanding Option Agreements by deleting the text thereof and replacing it as follows: 

“Y. In calculating the AOP in Section X. above for any performance year there shall also be taken into account any
AOP in any of the two prior performance years (starting in fiscal year 2014) which was in excess of the amount indicated in Column (E) or set forth in the following sentence for such prior year and has not previously been taken into account
hereunder or under any other option agreement to which the Participant is a party but only if doing so would increase the Annual Amount in such performance year. For purposes of determining whether AOP has been exceeded and the amount of any excess,
the YE Operating Performance per Diluted Share applicable to 2014 shall be $89.00 and to 2015 shall be $104.58.” 

 RESOLVED FURTHER, that such changes will be made, for the benefit of the holders under each
2015-16 Extension Outstanding Option Agreement and 2016-17 Extension Outstanding Option Agreement as applicable, without further action on the part of the Company or the participant. 

Adjustment of “Market Sweep” and Alternate Vesting Provisions in 

Outstanding Option Awards 
 WHEREAS, in light of the Dividend and the corresponding reduction in market price associated therewith and the return realized to the stockholders, in order to prevent dilution of benefits to the
participants, the Committee deems it to be appropriate to amend the market sweep and alternate vesting provisions of the outstanding option agreements to take into account the Dividend. 

NOW, THEREFORE, be it 
 RESOLVED, that by virtue of the authority vested in the Committee pursuant to each of the Five-Year 2012 Option Agreements and 2015-16 Extension Outstanding Option Agreements, the Committee hereby amends
the second paragraph of Section 3.1(c) by deleting it in its entirety and substituting therefor the following: 

“Notwithstanding Section 3.1(a) of this Agreement and Section 8 of the Plan (but subject to Section 3.1(b) of this
Agreement, after the second anniversary of the date of grant, in the event the closing price of the Company’s common stock on the New York Stock Exchange exceeds $135.15 per share less the amount of any dividends per share paid after
July 29, 2013 on any 60 trading days during any consecutive 12-month period, then all Options granted hereunder will become fully vested and exercisable.” 
 RESOLVED FURTHER, that by virtue of the authority vested in the Committee pursuant to each of the Five-Year 2013 Option Agreements and 2016-17 Extension Outstanding Option Agreements, the Committee hereby
amends the second paragraph of Section 3.1(c) by deleting it in its entirety and substituting therefor the following: 

“Notwithstanding Section 3.1(a) of this Agreement and Section 8 of the Plan (but subject to Section 3.1(b) of this
Agreement) and 

 
notwithstanding Exhibit B to this Agreement, with respect to any portion of the Options that have not otherwise vested prior to the applicable date set forth below: (a) in the event that
prior to September 30, 2016, the closing price of the Company’s common stock on the New York Stock Exchange exceeded an amount equal to two times the Exercise Price of the Options less the amount of any dividend per share after the grant
date (the “Target Price”) on any 60 trading days during any consecutive 12-month period commencing October 1, 2014, then all of the unvested Options will vest 50% on September 30, 2016 and 50% on September 30, 2017, and
(b) in the event that the condition in clause (a) is not met but, prior to September 30, 2017, the closing price of the Company’s common stock on the New York Stock Exchange exceeds the Target Price on any 60 trading days during
any consecutive 12-month period commencing October 1, 2015, the remaining portion of the unvested Options will vest on September 30, 2017.”

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