Document:

exv10w2

Exhibit 10.2

EXECUTION

SECOND AMENDMENT TO

PLEDGE AND SECURITY AGREEMENT

(QUEST RESOURCE CORPORATION)

     THIS SECOND AMENDMENT TO PLEDGE AND SECURITY AGREEMENT (herein referred to as this
“Security Agreement Amendment”) is executed as of March 5, 2010, by POSTROCK ENERGY SERVICES
CORPORATION, formerly known as QUEST RESOURCE CORPORATION, a Nevada corporation (“Debtor”), whose
address is 210 Park Avenue, Suite 2750, Oklahoma City, Oklahoma 73102, for the benefit of ROYAL
BANK OF CANADA (in its capacity as “Administrative Agent” and “Collateral Agent” for the Secured
Parties, as such term is defined in the Credit Agreement (hereafter defined)), as “Secured Party,”
whose address is Royal Bank Plaza, P.O. Box 50, 200 Bay Street, 12th Floor, South Tower, Toronto,
Ontario M5J 2W7.

RECITALS

     A. Pursuant to that certain Credit Agreement, dated as of November 15, 2007 (the “Original
Credit Agreement”) among Debtor, as debtor, the various financial institutions that are, or may
from time to time become, parties thereto (individually an “Lender” and collectively the “Lenders”)
and Royal Bank of Canada, as administrative agent (in such capacity, the “Administrative Agent”),
and collateral agent (in such capacity, the “Collateral Agent”), the Lenders have agreed to make
Loans for the account of the Debtor.

     B. To secure loans made by the Lenders to the Debtor pursuant to the Original Credit
Agreement, Debtor entered into that certain Pledge and Security Agreement dated as of November 15,
2007 in favor of the Administrative Agent for the benefit of the Lenders, as amended by a First
Amendment to Pledge and Security Agreement dated as of July 11, 2008 (as amended, the “Security
Agreement”) pursuant to which the Debtor granted a security interest in all assets of Debtor,
including without limitation, all partnership and limited liability company interests owned by
Debtor.

     C. Pursuant to that certain Amended and Restated Credit Agreement dated as of July
11, 2008 (the “First Amended and Restated Credit Agreement”), among Debtor, the various financial
institutions that were, or became, parties thereto and Royal Bank of Canada, as administrative
agent and collateral agent, the Original Credit Agreement was amended and restated in its entirety
and the indebtedness owing under the Original Credit Agreement was refinanced and carried forward
by the First Amended and Restated Credit Agreement and all of the liens and security interests
securing the “Obligations” (as defined in the Original Credit Agreement) were carried forward and
secured, without interruption or loss of priority, the “Obligations” (as defined in the First
Amended and Restated Credit Agreement) under the First Amended and Restated Credit Agreement.

     D. Pursuant to that certain Second Amended and Restated Credit Agreement dated as of September
11, 2009, as amended by a First Amendment to Second Amended and Restated Credit Agreement dated as
of November 30, 2009, a Second Amendment to Second Amended and Restated Credit Agreement dated as
of December 17, 2009 and a Third Amendment to Second Amended and Restated Credit Agreement dated as
of February 18, 2010 (as amended, the “Second Amended and Restated Credit Agreement”), among
Debtor, the various financial institutions that were, or become,

Second Amendment to Pledge and

Security Agreement

Quest Resource Corporation

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parties thereto and Royal Bank of Canada, as administrative agent and collateral agent, the
First Amended and Restated Credit Agreement was amended and restated in its entirety and the
indebtedness owing under the First Amended and Restated Credit Agreement was refinanced and carried
forward by the Second Amended and Restated Credit Agreement and all of the liens and security
interests securing the “Obligations” (as defined in the First Amended and Restated Credit
Agreement) were carried forward and secured, without interruption or loss of priority, the
“Obligations” (as defined in the Second Amended and Restated Credit Agreement) under the Second
Amended and Restated Credit Agreement.

     E. Pursuant to Section 10.21 of the Second Amended and Restated Credit Agreement, upon the
closing of the Recombination each Lender, together with the Administrative Agent and the Collateral
Agent, agreed to release, discharge and terminate any Lien against equity of QELP (or any successor
following any merger or conversion pursuant to the Recombination Agreement) pledged to secure the
Obligations in order for Debtor to pledge all such equity to secure, on a first lien priority
basis, Debtor’s guarantee of the Obligations (as defined in the QELP First Lien Credit Agreement),
and on a second lien priority basis, Debtor’s guarantee of the Obligations (as defined in the QELP
Second Lien Credit Agreement).

     F. To evidence the release contemplated by Recital E, Royal Bank of Canada, as Administrative
Agent and Collateral Agent, has entered into the Release Agreement of even date herewith pursuant
to which it has released the Lien against the equity of QELP.

     G. Pursuant to Section 10.21 of the Second Amended and Restated Credit Agreement, upon the
closing of the Recombination each Lender, together with the Administrative Agent and the Collateral
Agent, agreed to release, discharge and terminate any Lien against equity of QMLP (or any successor
following any merger or conversion) pledged to secure the Obligations in order for Debtor to pledge
all such equity to secure, on a first lien priority basis, Debtor’s guarantee of the Obligations
(as defined in the QMLP Credit Agreement).

     H. To evidence the release contemplated by Recital G, Royal Bank of Canada, as Administrative
Agent and Collateral Agent, has entered into the Release Agreement of even date herewith pursuant
to which it has released the Lien against the equity of QMLP.

     I. The Debtor and Administrative Agent are entering into this Security Agreement Amendment to
amend Annex B-1 to the Security Agreement to (i) release, discharge and terminate any Lien against
equity of QELP (or any successor following any merger or conversion) pledged to secure the
Obligations and (ii) release, discharge and terminate any Lien against equity of QMLP (or any
successor following any merger or conversion) pledged to secure the Obligations; and

     J. The Debtor has duly authorized the execution, delivery and performance of this Security
Agreement Amendment.

     K. This Security Agreement Amendment is integral to the transactions contemplated by the Loan
Documents, and the execution and delivery of this Security Agreement Amendment is a condition
precedent to the Lenders’ obligations to extend credit under the Loan Documents.

     ACCORDINGLY, for valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Debtor and Secured Party hereby agree as follows:

Second Amendment to Pledge and

Security Agreement

Quest Resource Corporation

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     1. REFERENCE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT. The terms, conditions, and
provisions of the Second Amended and Restated Credit Agreement are incorporated herein by
reference, the same as if set forth herein verbatim, which terms, conditions, and provisions shall
continue to be in full force and effect hereunder so long as the Lenders are obligated to lend
under the Second Amended and Restated Credit Agreement and thereafter until the Obligations are
paid and performed in full.

     2. Annex B-1 attached to the Security Agreement is hereby replaced and Annex B-1 attached
hereto is substituted therefor.

     3. Debtor is not required to grant a security interest in the successors to QELP and QMLP, in
each case whether by conversion or merger.

     THIS SECURITY AGREEMENT AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

Remainder of page Intentionally Blank

Signature Page to Follow.

Second Amendment to Pledge and

Security Agreement

Quest Resource Corporation

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     IN WITNESS WHEREOF, the Debtor has caused this Security Agreement Amendment to be duly
executed and delivered by an officer duly authorized as of the date first above written.

	 	 	 	 	 
	 	DEBTOR:

 	 
	 	POSTROCK ENERGY SERVICES CORPORATION,

a Nevada corporation

 	 
	 	By:  	/s/ David C. Lawler
 	 
	 	 	David C. Lawler, Chief Executive Officer 	 
	 	 	and President 	 
	 

Second Amendment to Pledge and

Security Agreement

Quest Resource Corporation

Signature Page 1

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT:

ROYAL BANK OF CANADA,

as Administrative Agent and Collateral Agent

 	 
	 	By:  	/s/ Susan Khokher
 	 
	 	Name:  	Susan Khokher 	 
	 	Title:  	Manager, Agency 	 
	 

Second Amendment to Pledge and

Security Agreement

Quest Resource Corporation

Signature Page 2

 

ANNEX B-1 TO SECURITY AGREEMENT

COLLATERAL DESCRIPTIONS

	A.	 	Collateral Notes and Collateral Note Security: None

	B.	 	Pledged Shares:

	 	•	 	100% of the issued and outstanding common stock of Quest Mergersub, Inc., a
Delaware corporation.

	C.	 	Partnership/Limited Liability Company Interests:

	 	•	 	100% of the issued and outstanding membership interests in Quest Oil & Gas, LLC, a
Kansas limited liability company.

	 	•	 	100% of the issued and outstanding membership interests in Quest Energy Service,
LLC, a Kansas limited liability company.

	 	•	 	100% of the issued and outstanding membership interests in Quest Eastern Resource
LLC (f/k/a PetroEdge Resources (WV) LLC), a Delaware limited liability company.

	D.	 	Agreements:

	 	•	 	Operating Agreement of Quest Energy Service, LLC dated December 18, 2006.

	 	•	 	Operating Agreement of Quest Oil & Gas, LLC dated December 18, 2006.

	 	•	 	Limited Liability Company Agreement of Quest Eastern Resource dated July 11, 2008.

	E.	 	Commercial Tort Claims: None

	F.	 	Deposit Accounts (including name of bank, address and account number):

	 	•	 	Account #814172369 at the Bank of Oklahoma.

	 	•	 	Account #814171588 at the Bank of Oklahoma.

	 	•	 	Account #737308510 at JPMorgan Chase Bank.

Second Amendment to Pledge and

Security Agreement

Quest Resource Corporation

Annex B-1 — Page 1exv10w3

Exhibit 10.3

EXECUTION

RELEASE AGREEMENT

     This RELEASE AGREEMENT (this “Agreement”) is executed as of March 5, 2010, by ROYAL
BANK OF CANADA (in its capacity as “Administrative Agent” and “Collateral Agent” for the Lenders
(hereafter defined)) (the “Secured Party”) whose address is Royal Bank Plaza, P.O. Box 50, 200 Bay
Street, 12th Floor, South Tower, Toronto, Ontario M5J 2W7 in favor of QUEST RESOURCE CORPORATION, a
Nevada corporation (“Debtor”), whose address is 210 Park Avenue, Suite 2750, Oklahoma City,
Oklahoma 73102.

RECITALS:

     A. Pursuant to that certain Credit Agreement, dated as of November 15, 2007 (the “Original
Credit Agreement”) among Debtor, as debtor, the various financial institutions that are, or may
from time to time become, parties thereto (individually an “Lender” and collectively the “Lenders”)
and Royal Bank of Canada, as administrative agent (in such capacity, the “Administrative Agent”),
and collateral agent (in such capacity, the “Collateral Agent”), the Lenders agreed to make Loans
for the account of the Debtor.

     B. To secure loans made by the Lenders to the Debtor pursuant to the Original Credit
Agreement, Debtor entered into that certain Pledge and Security Agreement dated as of November 15,
2007 in favor of the Administrative Agent for the benefit of the Lenders, as amended by a First
Amendment to Pledge and Security Agreement dated as of July 11, 2008 (as amended, the “Security
Agreement”) pursuant to which the Debtor granted a security interest in all assets of Debtor,
including without limitation, all partnership and limited liability company interests owned by
Debtor.

     C. Pursuant to that certain Amended and Restated Credit Agreement dated as of July 11, 2008
(the “First Amended and Restated Credit Agreement”), among Debtor, the various financial
institutions that were, or became, parties thereto and Royal Bank of Canada, as administrative
agent and collateral agent, the Original Credit Agreement was amended and restated in its entirety
and the indebtedness owing under the Original Credit Agreement was refinanced and carried forward
by the First Amended and Restated Credit Agreement and all of the liens and security interests
securing the “Obligations” (as defined in the Original Credit Agreement) were carried forward and
secured, without interruption or loss of priority, the “Obligations” (as defined in the First
Amended and Restated Credit Agreement) under the First Amended and Restated Credit Agreement.

     D. Pursuant to that certain Second Amended and Restated Credit Agreement dated as of September
11, 2009, as amended by a First Amendment to Second Amended and Restated Credit Agreement dated as
of November 30, 2009, a Second Amendment to Second Amended and Restated Credit Agreement dated as
of December 17, 2009 (the “Second Amendment to Second Amended and Restated Credit Agreement”) and a
Third Amendment to Second Amended and Restated Credit Agreement dated as of February 18, 2010 (as
amended, the “Second Amended and Restated Credit Agreement”; capitalized terms used but not defined
herein shall have the meanings given such terms in the Second Amended and Restated Credit
Agreement), among Debtor, the various financial institutions that were, or become, parties thereto
and Royal Bank of Canada, as administrative agent and collateral agent, the First Amended and
Restated Credit Agreement was amended and restated in its entirety and the indebtedness owing under
the First Amended and Restated Credit Agreement was refinanced and carried forward by the Second
Amended and Restated Credit Agreement and all of the liens and security interests securing the
“Obligations” (as defined in the First Amended and Restated Credit Agreement) were carried forward
and secured, without interruption or loss of priority, the “Obligations” (as defined in the Second
Amended and Restated Credit Agreement) under the Second Amended and Restated Credit Agreement.

QMLP and QMLPGP

Equity Lien Release

1

 

     E. Pursuant to Section 10.21 of the Second Amended and Restated Credit Agreement, upon the
closing of the Recombination each Lender, together with the Administrative Agent and the Collateral
Agent, agreed to release, discharge and terminate any Lien against the equity of QMLP (or any
successor following any merger or conversion) pledged to secure the Obligations in order for Debtor
to pledge all such equity to secure, on a first lien priority basis, Debtor’s guarantee of the
Obligations (as defined in the QMLP Credit Agreement).

     F. This Agreement is integral to the transactions contemplated by the Loan Documents, and the
execution and delivery of this Agreement has been approved by 100% of the Lenders by their
execution of the Second Amendment to Second Amended and Restated Credit Agreement.

     NOW, THEREFORE, in consideration of the recitals set forth above and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed by
Secured Party on behalf of the Lenders, as follows:

	 	1.	 	Immediately prior to the closing of the Recombination, Secured Party, on behalf
of the Lenders, hereby TERMINATES, RELEASES AND DISCHARGES all right, title and
interest of Secured Party and Lenders in and to the liens and security interests
created under the Security Agreement or otherwise existing against the following
specified collateral (collectively, the “Released Collateral”):

	 	(i)	 	35,134 Class A Subordinated limited partnership units in Quest
Midstream Partners, L.P.;
	 
	 	(ii)	 	4,900,000 Class A Subordinated limited partnership units in
Quest Midstream Partners, L.P.; and
	 
	 	(iii)	 	850 limited liability company membership units in Quest
Midstream GP, LLC.

	 	2.	 	Nothwithstanding anything in the Security Agreement to the contrary, Debtor is
not required to grant a security interest in equity interests in PostRock Midstream,
LLC after the closing of the Recombination.
	 
	 	3.	 	Secured Party hereby agrees to file a Uniform Commercial Code Financing
Statement Termination Statement (UCC-3) to release the Released Collateral from the
collateral covered by the UCC-1 Financing Statement naming Secured Party, as secured
party, and Debtor, as debtor, filed with the Nevada Secretary of State’s Office on
November 16, 2007 under file no. 20070381987.
	 
	 	4.	 	THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.
	 
	 	 	 	THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
	 
	 	5.	 	THIS AGREEMENT SHALL BE DEEMED A CONTRACT MADE UNDER THE LAWS OF THE STATE OF
NEW YORK AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS OF THE

QMLP and QMLPGP

Equity Lien Release

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STATE OF NEW YORK AND THE LAWS OF THE UNITED STATES OF AMERICA, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.

[SIGNATURE PAGE FOLLOWS]

QMLP and QMLPGP

Equity Lien Release

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IN WITNESS WHEREOF, this Agreement is executed as of the date first above written.

	 	 	 	 	 	 	 
	 	 	ROYAL BANK OF CANADA,	 	 
	 	 	as Administrative Agent and Collateral Agent	 	 
	 	 	for the Lenders	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Susan Khokher	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Susan Khokher	 	 
	 

	 	Title:
	 	Manager, Agency	 	 

QMLP and QMLPGP

Equity Lien Release

Signature Page 1

 

 

THE UNDERSIGNED LENDER hereby consents to the foregoing as of the date first above written.

	 	 	 	 	 
	 	ROYAL BANK OF CANADA,

as Lender

 	 
	 	By:  	/s/ Leslie P. Vowell
 	 
	 	 	Leslie P. Vowell 	 
	 	 	Attorney-in-Fact 	 
	 

QMLP and QMLPGP

Equity Lien Release

Signature Page 2

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