Document:

Tax Partnership Agreement

 Exhibit 10.2 
 Exhibit “F” 
 Attached to and made a part of the Participation and Exploration Agreement

 between Rex and Williams, as defined therein. 
 TAX PARTNERSHIP PROVISIONS 
 (For Special Elections, See Sections 8 and 9) 
 Table of Contents 
  

			
	 1.      GENERAL PROVISIONS
	  	2
	 1.1    DESIGNATION OF DOCUMENTS.
	  	2
	 1.2    RELATIONSHIP OF THE PARTIES.
	  	2
	 1.3    PRIORITY OF PROVISIONS OF THIS
EXHIBIT.
	  	2
	 1.4    SURVIVORSHIP.
	  	2
	 2.      TAX REPORTING PARTNER AND TAX
MATTERS PARTNER
	  	3
	 2.1    TAX REPORTING PARTNER.
	  	3
	 2.2    IF SMALL Tax PARTNERSHIP EXCEPTION FROM
TEFRA NOT APPLICABLE.
	  	3
	 3.      INCOME TAX COMPLIANCE AND
CAPITAL ACCOUNTS
	  	5
	 3.1    TAX RETURNS.
	  	5
	 3.2    FAIR MARKET VALUE CAPITAL
ACCOUNTS.
	  	5
	 3.3    INFORMATION REQUESTS.
	  	5
	 3.4    BEST EFFORTS WITHOUT LIABILITY.
	  	5
	 4.      TAX AND FMV CAPITAL ACCOUNT
ELECTIONS
	  	5
	 4.1    GENERAL ELECTIONS.
	  	5
	 4.2    DEPLETION.
	  	5
	 4.3    ELECTION OUT UNDER CODE 761(a).
	  	6
	 4.4    CONSENT REQUIREMENTS FOR SUBSEQUENT TAX
OR FMV CAPITAL ACCOUNT ELECTIONS.
	  	6
	 5.      CAPITAL CONTRIBUTIONS AND FMV CAPITAL
ACCOUNTS
	  	6
	 5.1    CAPITAL CONTRIBUTIONS.
	  	6
	 5.2    FMV CAPITAL ACCOUNTS.
	  	7
	 6.      TAX PARTNERSHIP ALLOCATIONS
	  	7
	 6.1    FMV CAPITAL ACCOUNT ALLOCATIONS.
	  	7
	 6.2    TAX RETURN AND TAX BASIS
CAPITAL ACCOUNT ALLOCATIONS.
	  	10
	 7.      TERMINATION AND LIQUIDATING DISTRIBUTION

	  	11
	 7.1    TERMINATION OF THE TAX
PARTNERSHIP.
	  	11
	 7.2    BALANCING OF FMV CAPITAL ACCOUNTS.
	  	11
	 7.3    DEEMED SALE GAIN/LOSS CHARGE
BACK.
	  	11
	 7.4    DEFICIT MAKE-UP OBLIGATION AND
BALANCING CASH CONTRIBUTIONS.
	  	11
	 7.5    DISTRIBUTION TO BALANCE CAPITAL
ACCOUNTS.
	  	12
	 7.6    FMV DETERMINATION.
	  	12
	 7.7    FINAL DISTRIBUTION.
	  	12
	 8.      TRANSFERS, INDEMNIFICATION, AND
CORRESPONDENCE
	  	12
	 8.1    TRANSFER OF TAX PARTNERSHIP INTERESTS.

	  	12
	 8.2    CORRESPONDENCE.
	  	12
	 9.      ELECTIONS AND CHANGES TO
ABOVE PROVISIONS
	  	13
	 9.1    INTENTIONALLY OMITTED.
	  	13
	 9.2    SPECIAL TAX ELECTIONS.
	  	13
	 9.3    CHANGE OF MAJORITY FOR OTHER
TAX ELECTIONS.
	  	13

  
  
 API Model Tax Partnership Agreement (1997-Rev.)
(Additionally Revised) 

	1.	GENERAL PROVISIONS 

  

	1.1	DESIGNATION OF DOCUMENTS. 

 This exhibit is referred to in, and is part of, that Agreement identified above and, if so provided, a part of any agreement to which the Agreement is an exhibit. Such agreement(s) (including all exhibits thereto, other than this exhibit)
shall be hereinafter referred to as the “Agreement;” and this exhibit is hereinafter referred to as the “Exhibit” or the “Tax Partnership Provisions” (the “TPPs”). Except as may be otherwise provided in this
Exhibit, terms defined and used in the Agreement shall have the same meaning when used herein. 
  

	1.2	RELATIONSHIP OF THE PARTIES. 

 The Tax Partnership is by and between Williams Production Appalachia LLC (“Williams Appalachia”) and Rex Energy I, LLC and R.E. Gas Development, LLC, (together “Rex”) hereinafter referred to as
“Party” or “Parties.” The Parties understand and agree that the arrangement and undertakings evidenced by the Agreement result in a partnership for purposes of Federal income taxation and certain State income tax laws which
incorporate or follow Federal income tax principles as to tax partnerships. Such partnership for tax purposes is hereinafter referred to as the “Tax Partnership.” For every other purpose of the Agreement the Parties understand and agree
that their legal relationship to each other under applicable State law with respect to all property subject to the Agreement is one of tenants in common, or undivided interest owners, or lessee(s) -sublessee(s) and not a partnership; that the
liabilities of the Parties shall be several and not joint or collective; and that each Party shall be responsible solely for its own obligations. 
  

	1.3	PRIORITY OF PROVISIONS OF THIS EXHIBIT. 

 If there is a conflict or inconsistency, whether direct or indirect, actual or apparent, between the terms and conditions of this Exhibit and the terms and conditions of
the Agreement, or any other exhibit or any part thereof, the terms and conditions of this Exhibit shall govern and control. 
  

	1.4	SURVIVORSHIP. Subject to Section 4.3, 

 1.4.1 Any
termination of the Agreement shall not affect the continuing application of the TPPs for the termination and liquidation. 
 1.4.2 Any termination of the
Agreement shall not affect the continuing application of the TPPs for the resolution of all matters regarding Federal and State income reporting. 
 1.4.3
These TPPs shall inure to the benefit of, and be binding upon, the Parties hereto and their successors and assigns. 
 1.4.4 The effective date of the
Agreement shall be the effective date of these TPPs. The Tax Partnership shall continue in full force and effect from, and after such date, until termination and liquidation. 
  

			
	API Model Tax Partnership Agreement (1997-Rev.) (Additionally Revised)	  	2

	2.	TAX REPORTING PARTNER AND TAX MATTERS PARTNER 

  

	2.1	TAX REPORTING PARTNER. 

 Williams Appalachia shall be the “tax reporting partner” (the “TRP”) responsible for compliance with all tax reporting obligations of the Tax Partnership, see Section 3.1, below. In the event of any change in the
TRP, the Party serving as TRP at the beginning of a given taxable year shall continue as TRP with respect to all matters concerning such year. Upon the request of any Party, the TRP will cooperate with such Party in connection with any
administrative or judicial proceedings with respect to tax matters relating to the Tax Partnership. 
  

	 	2.2	IF SMALL PARTNERSHIP EXCEPTION FROM TEFRA NOT APPLICABLE.

 If the Tax Partnership does not qualify for the “small partnership exception” from, or if the Tax Partnership
elects (see infra Elections at Sections 4.1 and 9.2) to be subject to, 6221 et seq., Subchapter C of Chapter 53 of Subtitle A (the “TEFRA rules”) of the Internal Revenue Code (the “Code”) the TRP shall also be the tax matters
partner as defined in Code 6231(a) (the “TMP”) and references to the TRP shall then include references to the TMP and vice versa. 
 The TMP, as representative of the Tax Partnership, shall be authorized to do each and all of the following: (a) to carry out and supervise the Tax Partnership’s response to any audit or examination by the IRS of the Tax
Partnership’s tax returns to the extent that such audit or examination relates to possible adjustments of Tax Partnership items at the Tax Partnership level; (b) to defend in applicable administrative and/or judicial proceedings against
any adjustments to Tax Partnership items which may be proposed by the IRS; and (c) to retain and pay counsel to represent the Tax Partnership in connection with any such audit, examination, or administrative or judicial proceeding. All costs
and expenses related to any such audit, examination or proceeding shall be paid by the Tax Partnership, and each Party shall execute such documents as are necessary or appropriate to authorize counsel retained by the TMP to represent the Tax
Partnership with respect to any and all Tax Partnership items in connection with any such audit, examination or proceeding. In no case shall the TMP or the Tax Partnership be liable for any additional tax payable by a Party attributable to
adjustments to Tax Partnership items resulting from any such audit, examination or proceeding or for any costs of separate counsel retained by any Party to represent such Party in connection with any such audit, examination or proceeding. The TMP
shall have similar authority with respect to any audits, examinations, or administrative or judicial proceedings related to state or local tax matters that affect Tax Partnership items at the Tax Partnership level. 
 2.2.1 The TMP shall not be required to incur any expenses for the preparation for, or pursuance of, administrative or judicial proceedings, unless the
Parties agree on a method for sharing such expenses. 
  

			
	API Model Tax Partnership Agreement (1997-Rev.) (Additionally Revised)	  	3

 2.2.2 The Parties shall furnish the TMP, within two weeks from the receipt of the request, the
information the TMP may reasonably request to comply with the requirements on furnishing information to the Internal Revenue Service. 
 2.2.3
The TMP shall not agree to any extension of the statute of limitations for making assessments on behalf of the Tax Partnership without first obtaining the written consent of all Parties. The TMP shall not bind any other Party to a settlement
agreement in tax audits without obtaining the written concurrence of any such Party. 
 2.2.4 Any other Party who enters in a settlement
agreement with the Secretary of the Treasury with respect to any partnership items, as defined in Code 6231(a)(3), shall notify the other Parties of the terms within ninety (90) days from the date of such settlement. 
 2.2.5 If any Party intends to file a notice of inconsistent treatment under Code 6222(b), such Party shall, prior to the filing of such notice, notify the
TMP of the (actual or potential) inconsistency of the Party’s intended treatment of a partnership item with the treatment of that item by the Tax Partnership. Within one week of receipt the TMP shall remit copies of such notification to the
other Parties. If an inconsistency notice is filed solely because a Party has not received a Schedule K-1 in time for filing of its income tax return, the TMP need not be notified. 
 2.2.6 No Party shall file pursuant to Code 6227 a request for an administrative adjustment of partnership items (the “RFAA”) without first
notifying all other Parties. If all other Parties agree with the requested adjustment, the TMP shall file the RFAA on behalf of the Tax Partnership. If unanimous consent is not obtained within thirty (30) days from such notice, or within the
period required to timely file the RFAA, if shorter, any Party, including the TMP, may file a RFAA on its own behalf. 
 2.2.7 Any Party
intending to file with respect to any partnership item, or any other tax matter involving the Tax Partnership, a petition under Code 6226, 6228, or any other provision, shall notify the other Parties prior to such filing of the nature of the
contemplated proceeding. In the case where the TMP is the Party intending to file such petition, such notice shall be given within a reasonable time to allow the other Parties to participate in the choice of the forum for such petition. If the
Parties do not agree on the appropriate forum, then the forum shall be chosen by majority vote. Each Party shall have a vote in accordance with its percentage interest in the Tax Partnership for the year under audit. If a majority cannot agree, the
TMP shall choose the forum. If a Party intends to seek review of any court decision rendered as a result of such proceeding, the Party shall notify the other Parties prior to seeking such review. 
  

			
	API Model Tax Partnership Agreement (1997-Rev.) (Additionally Revised)	  	4

	3.	INCOME TAX COMPLIANCE AND CAPITAL ACCOUNTS 

  

	3.1	TAX RETURNS. 

 The TRP shall prepare and file
all required Federal and State partnership income tax returns. Not less than thirty (30) days prior to the return due date (including extensions), the TRP shall submit to each Party for review a copy of the return as proposed. 
  

	3.2	FAIR MARKET VALUE CAPITAL ACCOUNTS. 

 The TRP shall establish and maintain for each Party fair market value (“FMV”) capital accounts and tax basis capital accounts in accordance with the TPPs. Upon
request, the TRP shall submit to each Party along with a copy of any proposed partnership income tax return an accounting of such Party’s FMV capital account and tax basis capital account as of the end of the return period. 
  

	3.3	INFORMATION REQUESTS. 

 In addition to any
obligation under Section 2.2.2, each Party agrees to furnish to the TRP not later than sixty (60) days before the return due date (including extensions) such information relating to the operations conducted under the Agreement as may be
required for the proper preparation of such returns. Similarly, each Party agrees to furnish timely to the TRP, as requested, any the information and data necessary for the preparation and/or filing of other required reports and notifications, and
for the computation of the capital accounts. As provided in Code 6050K(c), a Party transferring its interest must notify the TRP to allow compliance with Code 6050K(a) (see also Section 8.1). 
  

	3.4	BEST EFFORTS WITHOUT LIABILITY. 

 The TRP and each of the other Parties shall use its reasonable best efforts to comply with responsibilities outlined in this Section, and with respect to the service as TMP as outlined Section 2.2, and in doing
so shall incur no liability to any other Party. 
  

	4.	TAX AND FMV CAPITAL ACCOUNT ELECTIONS 

  

	4.1	GENERAL ELECTIONS. 

 For both income tax
return and capital account purposes, the Tax Partnership shall elect: 
 a) to deduct when incurred intangible drilling and development costs
(“IDC”); 
 b) for calculating depreciation, to use the maximum allowable accelerated tax method and the shortest permissible tax life for
depreciation, or the units of production method, as determined by the TRP; 
 c) the accrual method of accounting; 
 d) to report income on a calendar year basis; 
 and the Tax Partnership shall
also make any elections as specially noted in Section 9.2, below. 
  

	4.2	DEPLETION. 

 Solely for FMV capital account purposes,
depletion shall be calculated by using simulated cost depletion within the meaning of Treas. Reg. 1.704-1(b)(2)(iv)(k)(2), unless the use of simulated percentage depletion is elected in Section 9.2, below. The simulated cost 

  

			
	API Model Tax Partnership Agreement (1997-Rev.) (Additionally Revised)	  	5

 
depletion allowance shall be determined under the principles of Code 612 and be based on the FMV capital account basis of each Lease. Solely for purposes of
this calculation, remaining reserves shall be determined consistently by the TRP. 
  

	4.3	ELECTION OUT UNDER CODE 761(a). 

 4.3.1 The TRP shall notify all Parties of an intended election to be excluded from the application of Subchapter K of Chapter 1 of the Code not later than sixty (60) days prior to the filing date or the due date
(including extensions) for the Federal partnership income tax return, whichever comes earlier. Any Party that does not consent to such election in writing shall be deemed to object to such election. If all Parties consent, the TRP shall take all
necessary actions to effect such election and the Parties will cooperate as needed to carry out such election. If one Party objects, the TRP shall not take any action to effect such election. Even after an effective election-out, the TRP’s
rights and obligations, other than the relief from tax return filing obligations of the partnership, continue. 
 4.3.2 After an election-out, to avoid an
unintended impairment of the election-out: The Parties will avoid, without prior coordination, any operational changes which would terminate the qualification for the election-out status; all Parties will monitor the continuing qualification of the
Tax Partnership for the election-out status and will notify the other Parties if, in their opinion, a change in operations will jeopardize the election-out; and, all Parties will use, unless agreed to by them otherwise, the cumulative gas balancing
method as described in Treas. Reg. 1.761-2(d)(2). 
  

	4.4	CONSENT REQUIREMENTS FOR SUBSEQUENT TAX OR FMV CAPITAL
ACCOUNT ELECTIONS. 

 Unless stipulated differently in Section 9.3, future elections, in addition to or in
amendment of those in this agreement, must be approved by the affirmative vote of two (2) or more Parties owning a majority of the working interest based upon post-Payout ownership. 
  

	5.	CAPITAL CONTRIBUTIONS AND FMV CAPITAL ACCOUNTS 

 The provisions of this Section 5 and any other provisions of the TPPs relating to the maintenance of the capital accounts are intended to comply with Treas. Reg.
1.704-1(b) and shall be interpreted and applied in a manner consistent with such regulations. 
  

	5.1	CAPITAL CONTRIBUTIONS. 

 The respective
capital contributions of each Party to the Tax Partnership shall be (a) each Party’s interest in the oil and gas lease(s), including all associated lease and well equipment, committed to the Agreement, and (b) all amounts of money
paid by each Party in connection with the acquisition, exploration, development, and operation of the lease(s), and all other costs characterized as contributions or expenses borne by such Party under the Agreement. The contribution of the leases
and any other properties committed to the Tax Partnership shall be made by each Party’s agreement to hold legal title to its interest in such leases or other property as nominee of the Tax Partnership. 
  

			
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	5.2	FMV CAPITAL ACCOUNTS. 

 The FMV capital
accounts shall be increased and decreased as follows: 
 5.2.1 The FMV capital account of a Party shall be increased by: 
 (i) the amount of money and the FMV (as of the date of contribution) of any property contributed by such Party to the Tax Partnership (net of liabilities assumed by the
Tax Partnership or to which the contributed property is subject); 
 (ii) that Party’s share of Tax Partnership items of income or gain, allocated in
accordance with Section 6.1; and 
 (iii) that Party’s share of any item described in Code 705(a)(1)(B). 
 In this regard, the Parties agree and stipulate that the FMV of the Rex Leases as of the date of contribution thereof to the Tax Partnership is equal to Rex’s
adjusted tax basis in such Rex Leases. 
 5.2.2 The FMV capital account of a Party shall be decreased by: 
 (i) the amount of money and the FMV of property distributed to a Party (net of liabilities assumed by such Party or to which the property is subject); 
 (ii) that Party’s share of Tax Partnership loss and deductions, or items thereof, allocated in accordance with Section 6.1; and, 
 (iii) that Party’s share of any item described in Code 705(a)(2)(B) or treated as such in Treasury Regulations under Code §704(b). 
 5.2.3 “FMV” when it applies to property contributed by a Party to the Tax Partnership shall be assumed, for purposes of 5.2.1, to equal the adjusted tax
basis in the hands of the contributing Party, as defined in Code 1011, of that property unless the Parties agree otherwise as indicated in Section 9.2. 
 5.2.4 As provided in Treas. Reg. 1.704-1(b)(2)(iv)(e), upon distribution of Tax Partnership property to a Party the capital accounts will be adjusted to reflect the manner in which the unrealized income, gain, loss and
deduction inherent in distributed property (not previously reflected in the capital accounts) would be allocated among the Parties if there were a disposition of such property at its FMV as of the time of distribution. Furthermore, if so agreed to
in Section 9.2, under the rules of Treas. Reg. 1.704-1(b)(2)(iv)(f), the FMV capital accounts shall be revalued at certain times to reflect value changes of the Tax Partnership property. 
  

	6.	TAX PARTNERSHIP ALLOCATIONS 

  

	6.1	FMV CAPITAL ACCOUNT ALLOCATIONS. 

 Each item of income, gain, loss, or deduction shall be allocated to each Party as follows: 
 6.1.1 Actual or deemed income from the sale, exchange,
distribution or other disposition of production shall be allocated to the Party entitled to such production or the proceeds from the sale of such production as provided in the Agreement. The amount received from the 

  

			
	API Model Tax Partnership Agreement (1997-Rev.) (Additionally Revised)	  	7

 
sale of production and the amount of the FMV of production taken in kind by the Parties are deemed to be identical; accordingly, such items may be omitted
from the adjustments made to the Parties’ FMV capital accounts. 
 6.1.2 Exploration cost, IDC, operating and maintenance cost shall
be allocated to each Party in accordance with its respective contribution, or obligation to contribute, to such cost; provided that IDC cost paid or incurred by Williams Appalachia for all wells jointly drilled by Williams Appalachia and Rex in the
Project Area during the Drilling Carry Period (all terms as defined in the Participation and Exploration Agreement) will be allocated to Williams Appalachia, except  2/9ths of the IDC cost paid or incurred by Williams Appalachia will be allocated to Rex, which equates to 50% of the 40% carry ( 2/9ths x 90% = 20%). The IDC cost paid by Williams Appalachia and allocated to Rex during the Drilling Carry Period in the aggregate shall not exceed 50% of the IDC costs credited against the
Drilling Carry Obligation. 
 6.1.3 Depreciation shall be allocated to each Party in accordance with its contribution, or obligation to
contribute, to the cost of the underlying asset, except that depreciation with respect to the undivided interests in depreciable property that is paid for by Williams Appalachia during the Drilling Carry Period the cost of which is credited against
the Drilling Carry Obligation shall be allocated to Rex. (For example, if Rex pays 10% and Williams Appalachia pays 90% of the cost of depreciable equipment installed on a Commitment Well of which 40% of the cost is credited against the Drilling
Carry Obligation, depreciation of such equipment shall be allocated 50% to Rex and 50% to Williams Appalachia.) The depreciation allocated to Rex for costs of depreciable equipment paid by Williams Appalachia during the Drilling Carry Period in the
aggregate shall not exceed the total costs of depreciable equipment credited against the Drilling Carry Obligation. 
 6.1.4 Simulated depletion shall be
allocated to each Party in accordance with its FMV capital account adjusted basis in the applicable oil and gas property of the Tax Partnership, except that simulated depletion shall be allocated to Williams Appalachia on the amount of Code §
613A(c)(7)(D) depletable tax basis it is allocated under Section 6.2.2 below. 
 6.1.5 Simulated loss upon the sale, exchange, distribution, abandonment
or other disposition of depletable property shall be allocated to the Parties in the ratio of their respective FMV capital account adjusted bases in the depletable property. 
 6.1.6 Gain (or simulated gain) upon the sale, exchange, distribution, or other disposition of depreciable or depletable property and loss upon the sale, exchange, distribution, abandonment or other disposition of
depreciable property shall be allocated to the Parties so that the FMV capital account balances of the Parties with respect to such property will most closely reflect their respective percentage or fractional interests under the Agreement determined
without regard to the TPPs. 
  

			
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 6.1.7 Costs or expenses of any other kind shall be allocated to each Party in accordance with its respective
contribution, or obligation to contribute, to such costs or expense. 
 6.1.8 Any other income item shall be allocated to the Parties in accordance with the
manner in which such income is realized by each Party. 
 6.1.9 Special Allocations. 
 6.1.9.1 Notwithstanding the other provisions of this Section 6.1, if any Party unexpectedly receives any adjustments, allocations or distributions described in Treas. Reg. § 1.704-1(b)(2)(ii)(d)(4),
(5) or (6), which reduces the Party’s adjusted FMV capital account balance to below zero, gross income shall be specially allocated to such Party in an amount and manner sufficient to eliminate, to the extent required by the Treasury
Regulations, the FMV capital account deficit of such Party as quickly as possible. For purposes of this Section 6.1.9, a Party’s adjusted FMV capital account balance shall be the same as the Party’s FMV capital account balance
increased by the sum of (i) the amount, if any, which the Party is unconditionally obligated to contribute to the Tax Partnership, and (ii) the amount, if any, which the Party is deemed to be obligated to contribute to the Tax Partnership
under Treasury Regulations under Section 704(b) of the Code. 
 6.1.9.2 If any Party would be allocated an item of deduction or loss that would reduce
its adjusted FMV capital account balance to below zero, the Party shall be allocated only the amount of such item that would reduce its adjusted capital account balance to zero, and any remaining amount of such item shall be allocated to the other
Parties. 
 6.1.9.3 The foregoing allocations set forth in this Section 6.1.9 (the “Regulatory Allocations”) are intended to comply with
certain requirements of Treasury Regulations. It is the intent of the Parties that, to the extent possible, all Regulatory Allocations shall be offset either with other Regulatory Allocations or with special allocations of other items of income,
gain, loss or deduction pursuant to this Section. Therefore, notwithstanding any other provisions of this Section 6 (other than the Regulatory Allocations), the TRP shall make such offsetting special allocations of income, gain, loss or
deduction in whatever manner it determines appropriate so that, after such offsetting allocations are made, each Party’s FMV capital account balance is, to the extent possible, equal to the FMV capital account balance such Party would have had
if the Regulatory Allocations were not part of the TPPs and all items were allocated pursuant to Section 6.1 without regard to the Regulatory Allocations. The TRP shall have the discretion to administer this Section 6.1.9.3 in any
reasonable manner that eliminates, to the extent reasonably feasible, any character discrepancy between the amounts allocated under the other Sections of this Section 6.1.9 and the corresponding amounts allocated under this
Section 6.1.9.3. 
  

			
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	6.2	TAX RETURN AND TAX BASIS CAPITAL ACCOUNT ALLOCATIONS.

 6.2.1 Unless otherwise expressly provided in this Section 6.2, the allocations of the Tax Partnership’s items of income, gain,
loss, or deduction for tax return and tax basis capital account purposes shall follow the principles of the allocations under Section 6.1. However, the Tax Partnership’s taxable gain or loss on the taxable disposition of a Tax Partnership
property, if any, shall be allocated to the contributing Party to the extent of built-in gain or loss (as defined by Treasury Regulations under Code §704(c)). 
 6.2.2 The Parties recognize that under Code 613A(c)(7)(D) the depletion allowance is to be computed separately by each Party. For this purpose, each Party’s share of the Tax Partnership’s adjusted tax basis in each oil and gas
property shall be equal to its contribution to the Tax Partnership’s adjusted tax basis of such property, except cost depletion will be allocated to Williams Appalachia on 25% of the adjusted tax basis in the oil and gas properties initially
contributed to the Tax Partnership by Rex ; provided that if the Agreement is terminated by Williams Appalachia pursuant to Article IX of the Agreement, Williams Appalachia will retain the right to have cost depletion allocated to Williams
Appalachia on 25% of the adjusted tax basis in the Rex Leases initially contributed to the Tax Partnership by Rex insofar only as to interests in Rex Leases which remain in the Tax Partnership. 
 6.2.3 Under Code 613A(c)(7)(D) gain or loss on the disposition of an oil and gas property is to be computed separately by each Party. According to Treas. Reg.
1.704-1(b)(4)(v), the amount realized shall be allocated as follows: (i) An amount that represents recovery of adjusted simulated depletion basis is allocated (without being credited to the capital accounts) to the Parties in the same
proportion as the aggregate simulated depletion basis was allocated to such Parties under Section 6.2.2; and (ii) any remaining realization is allocated in accordance with Section 6.1.6. 
 6.2.4 Depreciation shall be allocated to each Party in accordance with its contribution to the Tax Partnership’s adjusted tax basis of the depreciable asset, except
as otherwise provided in Section 6.1.3. 
 6.2.5 In accordance with Treas. Reg. 1.1245-1(e), depreciation recapture shall be allocated, to the extent
possible, among the Parties to reflect their prior sharing of the depreciation. 
 6.2.6 In accordance with the principles of Treas. Reg. 1.1254-5, any
recapture of IDC is determined and reported by each Party separately. Similarly, any recapture of depletion shall be computed separately by each Party, in accordance with its depletion allowance computed pursuant to Section 6.2.2. 

6.2.7 For Tax Partnership properties with FMV capital account values different from their adjusted tax bases the Parties intend that the allocations described in this
Section 6.2 constitute a “reasonable method” of allocating gain or loss under Treas. Reg. 1.704-3(a)(1). 
 6.2.8 Take-in-kind. 
  

			
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 If checked “Yes” in Section 9.2, below, each Party has the right to determine the market for its
proportionate share of production. All items of income, deductions, and credits arising from such marketing of production shall be recognized by the Tax Partnership and shall be allocated to the Party whose production is so marketed. 
  

	7.	TERMINATION AND LIQUIDATING DISTRIBUTION 

  

	7.1	TERMINATION OF THE TAX PARTNERSHIP. 

 7.1.1 Upon termination, as provided in Code 708(b)(1)(A), the business shall be wound-up and concluded, and the assets shall be distributed to the Parties as described
below by the end of such calendar year (or, if later, within ninety (90) days after the date of such termination). The assets shall be valued and distributed to the Parties in the order provided in Sections 7.1.2, 7.5, and 7.7 
 7.1.2 First, all cash representing unexpended contributions by any Party and any property in which no interest has been earned by any other Party under the Agreement
shall be returned to the contributing Party, and the FMV capital account balance of any such Party shall be adjusted accordingly. 
  

	7.2	BALANCING OF FMV CAPITAL ACCOUNTS. 

 Second, the FMV capital accounts of the Parties shall be determined as described hereinafter. The TRP shall take the actions specified under Sections 7.2 through 7.5 in order to cause the ratios of the Parties’
FMV capital accounts to reflect as closely as possible their interests under the Agreement. The ratio of a Party’s FMV capital account is represented by a fraction, the numerator of which is the Party’s FMV capital account balance and the
denominator of which is the sum of all Parties’ FMV capital account balances. This is hereafter referred to as the “balancing of the FMV capital accounts” and, when completed, the FMV capital accounts of the Parties shall be referred
to as “balanced.” 
  

	7.3	DEEMED SALE GAIN/LOSS CHARGE BACK. 

 The FMV of all Tax Partnership properties shall be determined and the gain or loss for each property, which would have resulted if sold at such FMV, shall be allocated in
accordance with Sections 6.1.5 and 6.1.6. 
  

	7.4	DEFICIT MAKE-UP OBLIGATION AND BALANCING CASH CONTRIBUTIONS.

 If a Party has a negative FMV capital account balance, such Party shall not be obligated to contribute to the Tax Partnership an amount of
money sufficient to achieve a zero balance FMV capital account; provided that in all events each Party shall be and remain obligated to bear and pay its applicable share of costs, expenses, and charges pursuant to the JOA. Any Party may contribute
an amount of cash to the Tax Partnership to facilitate the balancing of the FMV capital accounts. If after these adjustments the FMV capital accounts are not balanced, Section 7.5 shall apply. 
  

			
	API Model Tax Partnership Agreement (1997-Rev.) (Additionally Revised)	  	11

	7.5	DISTRIBUTION TO BALANCE CAPITAL ACCOUNTS. 

 7.5.1 If all Parties agree, any cash or an undivided interest in certain selected properties shall be distributed to one or more Parties as necessary for the purpose of
balancing the FMV capital accounts. 
 7.5.2 Distribution of Undivided Interests. 
 Unless Section 7.5.1 applies, an undivided interest in each and every property shall be distributed to one or more Parties in accordance with the ratios of their FMV capital accounts. 
  

	7.6	FMV DETERMINATION. 

 If a property is to be valued for
purposes of balancing the capital accounts and making a distributions under this Section 7, the Parties must first attempt to agree on the FMV of the property; failing such an agreement, the TRP shall cause a nationally recognized independent
engineering firm to prepare an appraisal of the FMV of such property. 
  

	7.7	FINAL DISTRIBUTION. 

 After the FMV capital
accounts of the Parties have been adjusted pursuant to Sections 7.2 to 7.5, all remaining property and interests then held by the Tax Partnership shall be distributed to the Parties in accordance with their positive FMV capital account balances.

  

	8.	TRANSFERS, INDEMNIFICATION, AND CORRESPONDENCE 

  

	8.1	TRANSFER OF TAX PARTNERSHIP INTERESTS. 

 Transfers of Tax Partnership interests shall be governed by the Agreement. A Party transferring its interest, or any part thereof, shall notify the TRP in writing within
two weeks after such transfer. 
  

	8.2	CORRESPONDENCE. 

 All correspondence
relating to the preparation and filing of the Tax Partnership’s income tax returns and capital accounts shall be sent to: 
 (Attach
separate list, if necessary) 
  

			
	TRP	 	“Attn to:” reference
		
	 Williams Production Appalachia LLC
 One Williams Center

 MD 37-5
 Tulsa, OK 74172
	 	 J Kevin Vann
 E&P Controller

		
	Other Parties:	 	
		
	 Rex Energy I, LLC and R.E. Gas Development, LLC
 476
Rolling Ridge Drive
 Suite 300
 State College, PA
16801
	 	 Thomas Stabley
 Chief Financial
Officer

  

			
	API Model Tax Partnership Agreement (1997-Rev.) (Additionally Revised)	  	12

	9.	ELECTIONS AND CHANGES TO ABOVE PROVISIONS 

  

	9.1	[Intentionally Omitted.] 

  

	9.2	SPECIAL TAX ELECTIONS. 

 With
respect to Section 4.1, the Parties agree (if not applicable insert “N/A” or strike): 
  

			
	 	  	Yes
	 e) that the Tax Partnership shall elect to account for dispositions of depreciable assets under the general asset method to the extent permitted by Code 168(i)(4);

	  	NA
	 f) that, upon the request of either Party, the Tax Partnership shall elect under Code 754 to adjust the basis of Tax Partnership property, with the adjustments
provided in Code 734 for a distribution of property and in Code 743 for a transfer of a partnership interest. In case of distribution of property, the TRP shall adjust all tax basis capital accounts. In the case of a transfer of a partnership
interest the acquiring party(ies) shall establish and maintain its (their) tax basis capital account(s);
	  	Y
	 g) that the Tax Partnership shall elect under Code 6231 to be subject to the TEFRA rules.
	  	NA
	With respect to Section 4.2, Depletion the Parties agree that the Tax Partnership shall use simulated percentage depletion instead of simulated cost depletion.	  	Y
	With respect to Section 5.2.4, under the rules of Treas. Reg. 1.704-1(b)(2)(iv)(f) the Parties agree that the FMV capital accounts shall be revalued to reflect value changes of the Tax
Partnership property upon the occurrence of the events specified in (5)(i) through (iii) of said -1(b)(2)(iv)(f) regulations.	  	Y
	With respect to Section 6.2.8, the income attributable to take-in-kind production will be reflected on the tax return.	  	Y

 With respect to Section 5.2.3 the FMV for the listed properties are determined as follows
(mark as “N/A” if not applicable; use separate sheet if necessary) 
  

				
	 Property Description
	  	FMV
	 Rex Leases as defined in the Participation and Exploration Agreement and subsequently acquired property in the AMI Area pursuant to Article X
of the Participation and Exploration Agreement. FMV as referenced in the FMV column to the right is as to the Rex Leases and as of the date of contribution thereof to the Tax Partnership.
	  	$	62,763,089

  

	9.3	[Intentionally omitted.] 

 THE END 
  

			
	API Model Tax Partnership Agreement (1997-Rev.) (Additionally Revised)	  	13

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the 18th day of June, 2009. 
  

			
	WILLIAMS PRODUCTION APPALACHIA, LLC
		
	By:	 	 /s/ Jeff Schmuhl

	Name:	 	Jeff Schmuhl
	Title:	 	Director
	
	REX ENERGY I, LLC
		
	By:	 	 /s/ Benjamin W. Hulburt

	Name:	 	Benjamin W. Hulburt
	Title:	 	President and Chief Executive Officer
	
	R.E. GAS DEVELOPMENT, LLC
		
	By:	 	 /s/ Benjamin W. Hulburt

	Name:	 	Benjamin W. Hulburt
	Title:	 	President and Chief Executive Officer

  

			
	API Model Tax Partnership Agreement (1997-Rev.) (Additionally Revised)	  	14Limited Liability Company Agreement of RW Gathering, LLC

 Exhibit 10.3 
 LIMITED LIABILITY COMPANY AGREEMENT 
 OF 
 RW GATHERING, LLC 
 A DELAWARE
LIMITED LIABILITY COMPANY 
 EFFECTIVE AS OF JUNE 18, 2009 
 THE INTERESTS DESCRIBED AND REPRESENTED BY THIS LIMITED LIABILITY COMPANY AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS (THE
“SECURITIES LAWS”) AND MAY BE RESTRICTED SECURITIES AS THAT TERM IS DEFINED IN RULE 144 UNDER THE SECURITIES LAWS. TO THE EXTENT THE INTERESTS CONSTITUTE SECURITIES UNDER THE SECURITIES LAWS, THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR QUALIFICATION UNDER THE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES LAWS, THE AVAILABILITY OF WHICH IS TO BE
ESTABLISHED TO THE SATISFACTION OF THE COMPANY. 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	 Page

	 ARTICLE 1 DEFINITIONS
	  	1
		
	 ARTICLE 2 FORMATION OF COMPANY
	  	1
	 2.1
	  	Formation	  	1
	 2.2
	  	Name	  	1
	 2.3
	  	Principal Office	  	1
	 2.4
	  	Registered Agent and Registered Office	  	1
	 2.5
	  	Term	  	1
	 2.6
	  	No State-Law Partnership	  	2
		
	 ARTICLE 3 BUSINESS OF COMPANY
	  	2
		
	 ARTICLE 4 NAMES AND ADDRESSES OF EQUITY OWNERS
	  	2
	 4.1
	  	Members	  	2
	 4.2
	  	Economic Interest Owners	  	2
		
	 ARTICLE 5 RIGHTS AND DUTIES OF MANAGER
	  	3
	 5.1
	  	Management	  	3
	 5.2
	  	Number, Tenure and Qualifications	  	3
	 5.3
	  	Certain Powers of the Manager	  	3
	 5.4
	  	Limitations on Authority	  	4
	 5.5
	  	Liability for Certain Acts	  	6
	 5.6
	  	Manager and Members Have No Exclusive Duty to Company	  	6
	 5.7
	  	Indemnity of the Manager, Employees and Other Agents	  	7
	 5.8
	  	Resignation	  	7
	 5.9
	  	Removal	  	7
	 5.10
	  	Vacancies	  	8
	 5.11
	  	Compensation, Reimbursement	  	8
	 5.12
	  	Semi-Annual Plan	  	8
	 5.13
	  	Right to Rely on the Manager	  	9
		
	 ARTICLE 6 RIGHTS AND OBLIGATIONS OF EQUITY OWNERS
	  	10
	 6.1
	  	Limitation of Liability	  	10
	 6.2
	  	Equity Owners Have No Agency Authority	  	10
	 6.3
	  	Priority and Return of Capital	  	10
		
	 ARTICLE 7 ACTIONS OF MEMBERS
	  	10
	 7.1
	  	Member Approval	  	10
	 7.2
	  	Member Meetings	  	10
	 7.3
	  	Quarterly Meetings	  	10
		
	 ARTICLE 8 CONTRIBUTIONS TO THE COMPANY AND CAPITAL ACCOUNTS
	  	11
	 8.1
	  	Members’ Capital Contributions	  	11
	 8.2
	  	Additional Contributions	  	11

  

 i 

					
	 8.3
	  	Remedies for Non-Payment of Capital Contributions	  	11
	 8.4
	  	Capital Accounts	  	11
	 8.5
	  	Withdrawal or Reduction of Equity Owners’ Contributions to Capital	  	13
		
	 ARTICLE 9 ALLOCATIONS, INCOME TAX, DISTRIBUTIONS, ELECTIONS AND REPORTS
	  	13
	 9.1
	  	Allocations of Profits and Losses from Operations	  	13
	 9.2
	  	Special Allocations to Capital Accounts	  	14
	 9.3
	  	Credit or Charge to Capital Accounts	  	15
	 9.4
	  	Distributions	  	15
	 9.5
	  	Withholding	  	15
	 9.6
	  	Limitation Upon Distributions	  	15
	 9.7
	  	Interest on and Return of Capital Contributions	  	16
	 9.8
	  	Loans to Company	  	16
	 9.9
	  	Returns and Other Elections	  	16
	 9.10
	  	Tax Matters Partner	  	16
	 9.11
	  	Certain Allocations for Income Tax (But Not Book Capital Account) Purposes	  	17
		
	 ARTICLE 10 TRANSFERABILITY
	  	17
	 10.1
	  	General	  	17
	 10.2
	  	Conditions to Recognition of Transferee	  	18
	 10.3
	  	Transferee Not Member in Absence of Consent	  	19
		
	 ARTICLE 11 ISSUANCE OF MEMBERSHIP INTERESTS OR ECONOMIC INTERESTS
	  	20
	 11.1
	  	Issuance of Additional Membership Interests	  	20
	 11.2
	  	Part Year Allocations with Respect to New Equity Owners	  	20
		
	ARTICLE 12 DISSOLUTION AND TERMINATION	  	20
	 12.1
	  	Dissolution	  	20
	 12.2
	  	Effect of Dissolution	  	21
	 12.3
	  	Winding Up, Liquidation and Distribution of Assets	  	21
	 12.4
	  	Filing or Recording Statements	  	22
	 12.5
	  	Return of Contribution Nonrecourse to Other Equity Owners	  	23
		
	 ARTICLE 13 BOOKS AND RECORDS
	  	23
	 13.1
	  	Accounting Period	  	23
	 13.2
	  	Accounting Principles	  	23
	 13.3
	  	Books of Account and Records	  	23
	 13.4
	  	List of Equity Owners	  	24
	 13.5
	  	Audits	  	24
		
	 ARTICLE 14 DISPUTES
	  	24
	 14.1
	  	Dispute Resolution	  	24
	 14.2
	  	Executive Mediation	  	25
	 14.3
	  	Arbitration	  	25

  

 ii 

					
	 ARTICLE 15 MISCELLANEOUS PROVISIONS
	  	26
	 15.1
	  	Notices	  	26
	 15.2
	  	Application of Delaware Law	  	26
	 15.3
	  	Waiver of Action for Partition	  	27
	 15.4
	  	Amendments	  	27
	 15.5
	  	Execution of Additional Instruments	  	27
	 15.6
	  	Construction	  	27
	 15.7
	  	Effect of Inconsistencies with the Act	  	27
	 15.8
	  	Waivers	  	27
	 15.9
	  	Rights and Remedies Cumulative	  	27
	 15.10
	  	Attorneys’ Fees	  	27
	 15.11
	  	Severability	  	28
	 15.12
	  	Heirs, Successors, and Assigns	  	28
	 15.13
	  	Creditors	  	28
	 15.14
	  	Counterparts; Facsimile/PDF	  	28
	 15.15
	  	Oral Representations	  	28
	 15.16
	  	Investment Representations	  	28
	 15.17
	  	Representations and Warranties	  	29
		
	 ADDENDUM I
	  	i

  

 iii 

 This Agreement is made and entered into as of the Effective Date, by and among the Company, each of the Members whose
signatures appear on the signature page hereof (the “Initial Members”) and each Person who subsequently becomes an Equity Owner. In consideration of the mutual covenants contained herein and for other good and valuable
consideration, the Company and the Members (and each Person who subsequently becomes an Equity Owner) hereby agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 Unless the context otherwise specifies or requires, capitalized terms used herein that are not otherwise defined in the text of this Agreement shall have the respective meanings assigned thereto in Addendum I,
attached hereto and incorporated herein by reference, for all purposes of this Agreement (such definitions to be equally applicable to both the singular and the plural forms and any other grammatical variation of the terms defined). Unless otherwise
specified, all references herein to Articles or Sections are to Articles or Sections of this Agreement. 
 ARTICLE 2 

FORMATION OF COMPANY 
 2.1
Formation. On June 16, 2009, Kevin Montgomery, the organizer, organized a limited liability company pursuant to the Act by executing and delivering the Certificate of Formation to the Secretary of State in accordance with and pursuant to
the Act. The Company and the Equity Owners hereby forever discharge the organizer, and the organizer shall be indemnified by the Company and the Equity Owners, from and against any expense or liability actually incurred by the organizer by reason of
having been the organizer of the Company. 
 2.2 Name. The name of the Company is RW Gathering, LLC. 
 2.3 Principal Office. The principal office of the Company shall be the address of the Manager as set forth on Exhibit 4.1. The Company
may locate its places of business at any other place or places as the Manager may from time to time deem advisable. 
 2.4 Registered
Agent and Registered Office. The Company’s initial registered office and the name of the registered agent at such address shall be as set forth in the Certificate of Formation. The registered office and registered agent may be changed from
time to time by the Manager by making an appropriate filing regarding such change in the address of the new registered office or the name of the new registered agent with the Secretary of State pursuant to the Act. 
 2.5 Term. The Company shall continue in existence until it dissolves in accordance with the provisions of this Agreement or the Act. 

 2.6 No State-Law Partnership. The Equity Owners intend that the Company not be a partnership
(including a limited partnership) or joint venture, and that no Equity Owner be a partner or joint venturer of any other Equity Owner by virtue of this agreement, for any purposes other than as set forth in the immediately following sentence, and
neither this Agreement nor any document entered into by the Company or any Equity Owner shall be construed to suggest otherwise. The Equity Owners intend that the Company shall be treated as a partnership for federal and, if applicable, state or
local income tax purposes, and the Company and each Equity Owner shall file all tax returns and shall otherwise take all tax and financial reporting positions in a manner consistent with such treatment. Each Equity Owner (in its capacity as Equity
Owner) hereby disclaims, to the maximum extent permitted by applicable law, all partner fiduciary duties or obligations it may owe in its capacity as Equity Owner. 
 ARTICLE 3 
 BUSINESS OF COMPANY 
 The business of the Company shall be: 
 (a) To acquire, improve, manage, operate and dispose of gas gathering lines and associated facilities. 
 (b) To accomplish any lawful business which at any time appears conducive to or expedient for the protection or benefit of the Company and its assets to accomplish the foregoing. 
 (c) To exercise all other powers necessary to or reasonably connected with the Company’s business that may be legally exercised by
limited liability companies under the Act to accomplish the foregoing. 
 (d) To engage in all activities necessary,
customary, convenient, or incident to any of the foregoing. 
 ARTICLE 4 
 NAMES AND ADDRESSES OF EQUITY OWNERS 
 4.1 Members. The names and
addresses of the Members are as set forth on the attached Exhibit 4.1, which may be amended and restated by the Manager at any time if it should receive updated information about the identity or addresses of the Members as permitted
elsewhere in this Agreement. 
 4.2 Economic Interest Owners. The names and addresses of the Economic Interest Owners are as set forth
on the attached Exhibit 4.2, which maybe amended and restated by the Manager at any time if it should receive updated information about the identity or addresses of the Economic Interest Owners as permitted elsewhere in this Agreement.

  

 2 

 ARTICLE 5 
 RIGHTS AND DUTIES OF MANAGER 
 5.1 Management. The business and affairs of the Company shall
be managed by its Manager. Except as otherwise provided herein or under applicable law, as to all matters within the ordinary course of business, the Manager shall have full and complete authority, power, and discretion to manage and control the
business, affairs and Properties of the Company, to make all decisions regarding those matters and to perform any and all other acts and activities customary or incident to the management of the Company’s business. Unless authorized to do so by
this Agreement or by the Manager, no attorney-in-fact, employee, or other agent of the Company shall have any power or authority to bind the Company in any way, to pledge its credit, or to render it liable for any purpose. 
 5.2 Number, Tenure and Qualifications. There shall be one Manager and the initial Manager shall be Rex. Rex shall hold office until 11:59:59 p.m.
on December 31, 2009. At 12:00:00 a.m. on January 1, 2010, Williams shall become the sole Manager. Except as provided in the preceding two sentences, the Manager shall hold office until such Manager resigns pursuant to Section 5.8 or
is removed pursuant to Section 5.9. The Manager need not be a resident of Delaware but must be a Member. 
 5.3 Certain Powers of the
Manager. Without limiting the generality of Section 5.1 but subject to the limitations of Section 5.4 and the limitation that any action be within the scope of the business (as described in Article 3) and the scope of the
Semi-Annual Plan (or within the last sentence of Section 5.12(b) or the thresholds provided in Section 5.4(b) and (c) as to applicable line items or the Semi-Annual Plan as a whole), the Manager shall have power and authority, on
behalf of the Company, to: 
 (a) Acquire property from any Person, in one acquisition or a series of acquisitions, as the
Manager may determine; provided that if such Person is the Manager or an Equity Owner or an Affiliate of either, such acquisition may not be effected without Approval of all the Members; 
 (b) Borrow money for the Company from banks, other lending institutions, the Manager, Equity Owners, or Affiliates of the Manager or the
Equity Owners on such terms, and in such amounts, as have been approved in the Semi-Annual Plan and, in connection therewith, Hypothecate any or all of the Company Property to secure repayment of the borrowed sums; 
 (c) Purchase liability and other insurance to protect the Company’s property and business in such amount and on such terms as
approved in the Semi-Annual Plan; 
 (d) Hold and own any Company real or personal properties in the name of the Company;

 (e) Invest any Company funds in accordance with the Semi-Annual Plan (by way of example but not limitation) in time
deposits, short-term governmental obligations, commercial paper, or other investments, irrespective of whether they qualify as appropriate fiduciary types of investments; 
  

 3 

 (f) Execute all instruments and documents, including checks, drafts, notes and other
negotiable instruments; mortgages or deeds of trust; security agreements; financing statements; documents providing for the acquisition, mortgage, or disposition of Company Property; assignments; bills of sale; leases; partnership agreements;
operating (or limited liability company) agreements of other limited liability companies; and any other instruments or documents necessary, in the opinion of the Manager, to the conduct of the business of the Company, including modifications and
amendments thereto; 
 (g) Employ accountants, legal counsel, managing agents, other experts, employees and independent
contractors to perform services for the Company and compensate them from Company funds; 
 (h) Execute any other agreement on
behalf of the Company with any other Person, in the ordinary course of business, for any purpose and in such form as the Manager may approve; 
 (i) Execute and file such other instruments, documents, and certificates which may from time to time be required by the laws of Delaware or any other jurisdiction in which the Company shall determine to do business,
or any political subdivision or agency thereof, to effectuate, implement, continue, and defend the valid existence of the Company; 
 (j) Open bank accounts in the name of the Company and be the sole signatory thereon unless the Manager determines otherwise; and 
 (k) Do and perform all other acts as may be necessary or appropriate to the conduct of the Company’s business in the ordinary course. 
 5.4 Limitations on Authority. Notwithstanding any other provision of this Agreement, the Manager shall not cause or commit the Company to take any action outside the ordinary course of business (except as
provided in the last sentence of Section 5.12(b)) without the Approval of all of the Members, such actions include: 
 (a) Selling or otherwise disposing of all or substantially all of the Company Property or any Company Property other than in the ordinary course of business; 
 (b) Incurring or refinancing any indebtedness for money borrowed or any liability, whether secured or unsecured (including any
indebtedness for money borrowed from an Equity Owner, the Manager or an Affiliate of either), if, after such financing, the indebtedness exceeds the applicable line item in the then effective Semi-Annual Plan by 10% or the aggregate indebtedness of
the Company would exceed the aggregate indebtedness provided for in the then-effective Semi-Annual Plan by 10%; 
  

 4 

 (c) Incurring any single expenditure in excess of $100,000 (the Approval of a Semi-Annual
Plan including such an expenditure shall constitute Approval of the expenditure); 
 (d) Requiring the Company to maintain
Reserves in excess of the aggregate anticipated capital expenditures for the next six month period as set forth in the current Semi-Annual Capital Budget without the unanimous written Approval of the Members (the Approval of a Semi-Annual Plan
including a Reserve that exceeds such aggregate anticipated capital expenditures shall constitute Approval of such Reserve); 
 (e) Entering into any material contract, including marketing agreements, volume commitments, firm capacity commitments, or hedging contracts; 
 (f) Hiring any employees of the Company or providing for any compensation to the Manager; 
 (g) Making any single expenditure or series of related expenditures (whether in the nature of a capital improvement, repair, alteration or change or in the nature of an operating expenditure) if such expenditure or series of related
expenditures exceeds the applicable line item in the then effective Semi-Annual Plan by 10% or the aggregate indebtedness of the Company would exceed the aggregate indebtedness provided for in the then-effective Semi-Annual Plan by 10%; 

(h) Lending money to or guarantying or becoming surety for the obligations of any Person (other than accounts receivables arising in
the ordinary course of the Company’s operations); 
 (i) Instituting any lawsuit or arbitration proceeding; 

(j) Compromising or settling any claim against or inuring to the benefit of the Company; 
 (k) Causing the Company to be a party to a Reorganization; 
 (l) Causing the Company to commence a voluntary case as debtor under the United States Bankruptcy Code; 
 (m) Except as provided in Section 8.3, incurring any indebtedness for money borrowed from the Manager, any Equity Owner, or an
Affiliate of either; 
 (n) Entering into or amending any contract to gather, transport or treat gas or any other substance
with the Manager, any Equity Owner or an Affiliate of either; 
 (o) Admit any Person as a Member; 
  

 5 

 (p) Issue any Membership Interests or create any new Membership Interests in the Company;

 (q) Consolidate, sub-divide or convert any of the Company’s Membership Interests; 
 (r) Merge, consolidate or enter into any business combination with any other Person; 
 (s) Engage in any business activity that is not within the purpose and nature of the business to be conducted by the Company as set forth
in Article 3; 
 (t) Make (or permit to be made) any amendment, modification or supplement to the Semi-Annual Plan;

 (u) Hire, appoint, or make any material increase in the compensation of (or any increase in the cash compensation of) the
Manager or any employee of the Company other than as set forth in the Semi-Annual Plan; or 
 (v) Enter into any contract with
the Manager or its Affiliates. 
 The Company, the Manager, and the Equity Owners shall comply at all times with all U.S. Government Controls. 
 5.5 Liability for Certain Acts. 
 (a) The Manager does not, in any way, guarantee the return of the Equity Owners’ Capital Contributions or a profit for the Equity Owners from the operations of the Company or otherwise. 
 (b) No Manager and no Affiliate of a Manager shall be liable to the Company or to any Equity Owner for any loss or damage sustained by the
Company or any Equity Owner (or successor thereto), except to the extent, if any, that the loss or damage shall have been the result of gross negligence, fraud, deceit or willful misconduct by such Manager or by such Affiliate of a Manager.

 5.6 Manager and Members Have No Exclusive Duty to Company. The Manager, the Members, and their Affiliates shall have no exclusive
duty to act on behalf of the Company. The Manager, each Member, and each of their Affiliates may have other business interests and may engage in other activities in addition to those relating to the Company. Neither the Company nor any Member shall
have any right, by virtue of this Agreement, to share or participate in any other investments or activities of any other Member, the Manager, or any of their Affiliates. Neither any Manager, Member, nor any of their Affiliates shall incur any
liability to the Company or to any of the Equity Owners as a result of engaging in any other business or venture. Notwithstanding the foregoing provisions of this Section 5.6, the construction of gas gathering lines and associated facilities to
facilitate the development of the Commitment Wells (as defined in the PEA) and any further wells jointly drilled under 

  

 6 

 
the terms of the PEA shall initially be proposed by any Member to be included in the Semi-Annual Capital Budget in accordance with section 7.01 of the PEA
and, only if the Members are unable to agree to such project being included in the Semi-Annual Capital Budget and in accordance with section 7.01 of the PEA, may a Member construct such project outside the Company. 
 5.7 Indemnity of the Manager, Employees and Other Agents. 
 (a) The Company shall indemnify the Manager and its Affiliates for any loss in connection with its activities (other than solely in its
capacity as an Equity Owner, if applicable) in connection with the establishment, management or operations of the Company and make advances for expenses to the maximum extent permitted under the Act, except to the extent the claim for which
indemnification is sought results from an act or omission for which the Manager or the Affiliates of such Manager is held liable to the Company or to a Member under Section 5.5(b). The Company may indemnify its employees and other agents (other
than the Manager) to the fullest extent permitted by law; provided that such indemnification in any given situation is Approved by all of the Members. 
 (b) Expenses (including legal fees and expenses) incurred by the Manager or by one of its Affiliates in defending any claim, demand, action, suit or proceeding subject to subsection (a) above shall be paid
periodically by the Company, as they accrue and are payable to third parties, in advance of the final disposition of such claim, demand, action, suit, or proceeding upon receipt of an undertaking (which need not be secured) by or on behalf of the
Manager to repay such amount if it shall ultimately be finally determined by a court of competent jurisdiction and not subject to appeal, that the Manager or such Affiliate is not entitled to be indemnified by the Company as authorized hereunder.

 5.8 Resignation. The Manager may resign at any time by giving written notice to the Members; provided that Williams (if it is the
Manager at such time) shall be deemed to resign as of the termination of the PEA in accordance with section 9.01(a) or (b) of the PEA. The resignation of the Manager shall take effect upon receipt of notice thereof or at such later time as
shall be specified in such notice; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. The resignation of the Manager shall not affect the Manager’s rights as a Member and
shall not constitute a withdrawal of a Member. 
 5.9 Removal. At a meeting called expressly for that purpose, the Manager may be
removed at any time by Approval of all of the Members (including the Manager) for any reason or for no reason. The Manager shall automatically be removed upon the Manager’s dissolution or Bankruptcy or if the Manager ceases to be a Member. The
removal of the Manager shall not affect the Manager’s rights as a Member and shall not constitute a withdrawal of a Member. 
  

 7 

 5.10 Vacancies. If the Manager resigns or is removed, a new Manager shall be appointed by the
Approval of all of the Members; provided that if Williams is deemed to resign pursuant to the proviso of the first sentence of Section 5.8, Rex shall be automatically appointed Manager as of the time of such resignation. 
 5.11 Compensation, Reimbursement. The compensation of the Manager, if any, shall be as set forth in the Semi-Annual Plan, and the Manager shall
not be prevented from receiving such compensation by reason of the fact that it is also a Member. No Equity Owner shall be entitled to compensation from the Company for services rendered to the Company as such. Upon the submission of
appropriate documentation, the Manager shall be reimbursed by the Company for reasonable out-of-pocket expenses incurred on behalf, or at the request, of the Company. 
 5.12 Semi-Annual Plan. 
 (a) No later than March 1 and September 1 of each
year, the Manager shall prepare for the Approval of all of the Members for a six-month period of the Fiscal Year a business plan (the “Semi-Annual Plan”) for the next six months of the Fiscal Year, setting forth as separate budget
components: (I) the Semi-Annual O&M Budget, and (II) the Semi-Annual Capital Budget. At a minimum, each component of the Semi-Annual Plan shall set out the estimated receipts (including any additional capital contributions),
expenditures (capital, operating and other) and Reserves of the Company in sufficient detail to provide an estimate of cash flow, capital proceeds, and other financial requirements of the Company for the next six months of the Fiscal Year. Any such
Semi-Annual Plan shall also include such other information or other matters necessary in order to inform the Members of the Company’s business and to enable the Members to make an informed decision with respect to their Approval of such
Semi-Annual Plan. The Members shall review the proposed Semi-Annual Plan and shall offer any revisions thereto within thirty (30) days. Each separate budget component of the Semi-Annual Plan may be approved independently of any other budget
component and each separate capital project in the Semi-Annual Capital Budget may be approved independently of any other capital project. The Members shall endeavor to Approve the Semi-Annual Plan within seventy-five (75) days. If the Members
are not able to Approve the Semi-Annual O&M Budget for any six month period within such seventy-five (75) day period, each line item in the Semi-Annual O&M Budget for the next six month period shall be increased by the percentage
increase in the CPI Index from the first day for which the previous Semi-Annual O&M Budget was in effect to the most recently available CPI Index, and the resulting plan shall be the Semi-Annual O&M Budget for the next six month period. If
the CPI Index is discontinued or revised during the term of this Agreement, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the CPI Index had
not been discontinued or revised. If the CPI Index is not replaced with any other government index or computation, then the Members shall, in good faith, agree on a suitable substitute. If the Members are not able to Approve any capital project
within the Semi-Annual Capital 

  

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Budget within such seventy-five (75) day period, the Semi-Annual Capital Budget for the next six months of the Fiscal Year with respect to such capital
project shall be $0, and the Manager will not be permitted to make any capital expenditure without the unanimous written Approval of the Members unless such capital expenditure is necessary to remedy an Emergency as determined by the Manager in its
reasonable discretion. 
 (b) After the Semi-Annual Plan for a particular period has been Approved by the Members and subject
to Section 5.4, the Manager shall implement the Semi-Annual Plan and shall be authorized to make only the expenditures and incur only the obligations provided for therein; provided that the Manager shall be authorized to make expenditures not
contemplated in the Semi-Annual Plan if such expenditures are deemed necessary or appropriate by the Manager and are within the scope of a Reserve provided in the Semi-Annual Plan or within the overages allowed in Section 5.4(b) and 5.4(g).
Notwithstanding the foregoing, the Manager may make any expenditure or incur any obligation, whether or not such expenditure or obligation is provided for in an Semi-Annual Plan, that is the legal obligation of the Company and not within the
reasonable control of the Manager (e.g., real or personal property taxes) or that the Manager determines is necessary to address any Emergency. 
 (c) Notwithstanding anything to the contrary in Section 5.12(a), the Members shall Approve the Company’s Semi-Annual Plan for the period from the Effective Date through December 31, 2009 within thirty
(30) days of the Effective Date and the requirements of Section 5.12(a) shall begin to operate for the Fiscal Year beginning January 1, 2010 (i.e., the Semi-Annual Plan for the first six months of 2010 shall be prepared for the
Approval of the Members pursuant to Section 5.12(a) no later than September 1, 2009). Any Semi-Annual Plan and any component or project within the Semi-Annual Plan may be amended, revised, restated or replaced at any time by the Approval
of all of the Members. 
 5.13 Right to Rely on the Manager. Any Person dealing with the Company may rely (without duty of further
inquiry) upon a certificate signed by the Manager as to: 
 (a) The identity of any Manager (past or present) or Equity Owner;

 (b) The existence or nonexistence of any fact or facts which constitute a condition precedent to acts on behalf of the
Company by the Manager or which are in any other manner germane to the affairs of the Company; 
 (c) The Persons who are
authorized to execute and deliver any instrument or document of the Company; or 
 (d) Any act or failure to act by the
Company or any other matter whatsoever involving the Company or any Equity Owner. 
  

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 ARTICLE 6 
 RIGHTS AND OBLIGATIONS OF EQUITY OWNERS 
 6.1 Limitation of Liability. Except as otherwise
provided by this Agreement and the non-waivable provisions of the Act, no Equity Owner shall be liable for an obligation of the Company solely by reason of being or acting as an Equity Owner. 
 6.2 Equity Owners Have No Agency Authority. Except as expressly provided in this Agreement, the Equity Owners (in their capacity as Equity Owners)
shall have no agency authority on behalf of the Company and may not bind the Company. 
 6.3 Priority and Return of Capital. Except as
may be expressly provided in Article 9, no Equity Owner shall have priority over any other Equity Owner, either as to the return of Capital Contributions or as to Profits, Losses or Distributions; provided, however, that this Section 6.3
shall not apply to loans (as distinguished from Capital Contributions) that an Equity Owner has made to the Company. 
 ARTICLE 7 

 ACTIONS OF MEMBERS 
 7.1
Member Approval. Unless otherwise required in this Agreement, Approvals of the Members may be communicated or reflected orally, electronically, or in writing, and no action need be taken at a formal meeting. If, however, any Approval is
required to be in writing, such Approval shall be evidenced (i) by a written consent, which may be executed in separate written counterparts or (ii) by the Approval of the Members at a meeting. If not done in writing, then (unless such
Approval is required to be in writing) any Approval of the Members shall be effective when all of the Members communicate their Approval to the Manager. If, for any reason, a Member must determine its percentage of the voting rights hereunder, such
percentage shall be equal to its Sharing Ratio. 
 7.2 Member Meetings. Members may, but are not required to, meet from time to time
on at least five days’ written notice which may be given by the Manager or by any Member; provided that such notice may be waived by a Member in writing. All Members must be represented in person or by proxy for a quorum to exist at any meeting
of the Members. Any Member may participate in a meeting by means of conference telephone (or similar communications equipment provided that all such persons so participating in such meeting can hear each other at the same time) and such
participation shall constitute presence in person at the meeting. The foregoing shall constitute the procedure for all meetings of the Members. 
 7.3 Quarterly Meetings. Unless waived by all the Members, the Members shall meet at least quarterly to review past operations since the last such meeting and to plan for future operations for the forthcoming twelve (12) months.
The Members may participate in any meeting by conference telephone or other communications equipment by which all Persons participating in the meeting can hear each other. 
  

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 ARTICLE 8 
 CONTRIBUTIONS TO THE COMPANY AND CAPITAL ACCOUNTS 
 8.1 Members’ Capital Contributions.
Each Member shall contribute such amount as is set forth in Exhibit 4.1 hereto as its share of the Initial Capital Contribution. Rex shall contribute its Initial Capital Contribution in accordance with the PEA and an assignment agreement
in the form provided for in the PEA, to be effective as of the Effective Date. The Company shall distribute an amount equal to fifty percent (50%) of Rex’s cost of acquiring the assets making up its Initial Capital Contribution (to be
documented to Williams satisfaction), which distribution shall be fully funded solely from the Initial Capital Contribution made by Williams. 
 8.2 Additional Contributions. Each Equity Owner shall be required to make such additional Capital Contributions as shall be set forth in the then effective Semi-Annual Plan. At any time during a Fiscal Year where the Semi-Annual Plan
specifies that additional Capital Contributions will be made, the Manager may give written notice to each Equity Owner of the amount of required additional contribution and the timing required therefor, and each Equity Owner shall deliver to the
Company its pro rata share thereof (in proportion to the Sharing Ratios of the Members on the date such notice is given) in accordance with the timing specified in such notice. None of the terms, covenants, obligations or rights
contained in this Section 8.2 is or shall be deemed to be for the benefit of any Person other than the Equity Owners and the Company, and no such third person shall under any circumstances have any right to compel any actions or payments by the
Manager or the Equity Owners. 
 8.3 Remedies for Non-Payment of Capital Contributions. If any Equity Owner fails to make full and
timely payment to the Company of any additional Capital Contribution properly assessed hereunder, the amount funded by any Equity Owner who timely satisfies its obligations under Section 8.2 shall not be treated as a Capital Contribution but,
instead, shall be treated as a loan to the Company. Such loan shall bear interest at a floating rate equal to five (5) percentage points higher than the Prime Rate and shall be paid in full prior to any distributions being made to the Equity
Owners. Payments on such loan shall be credited first to accrued interest. The Manager and any lending Equity Owner shall execute a promissory note or other loan documentation containing such other terms and conditions as mutually agreed by the
Manager and such lending Equity Owner. 
 8.4 Capital Accounts. 
 (a) A separate Capital Account shall be maintained for each Equity Owner. Each Equity Owner’s Capital Account shall be increased by
(i) the amount of money contributed by such Equity Owner to the Company; (ii) the Gross Asset Value of property contributed by such Equity Owner to the Company (net of liabilities secured by such contributed property that the Company is
considered to assume or take subject to under Section 752 of the Code); (iii) allocations to such Equity Owner of Profits; and (iv) any items in the nature of income and gain which are specially allocated to the Equity Owner 

  

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pursuant to Sections 9.2 and 9.3. Each Equity Owner’s Capital Account shall be decreased by (1) the amount of money Distributed to such Equity
Owner by the Company; (2) the Gross Asset Value of property Distributed to such Equity Owner by the Company (net of liabilities secured by such Distributed property that such Equity Owner is considered to assume or take subject to under
Section 752 of the Code); (3) any items in the nature of deduction and loss that are specially allocated to the Equity Owner pursuant to Sections 9.2 and 9.3; and (4) allocations to such Equity Owner of Losses. 
 (b) Without limiting the other rights and duties of a transferee of an Ownership Interest pursuant to this Agreement, in the event of a
permitted sale or exchange of an Ownership Interest in the Company, (i) the Capital Account of the transferor shall become the Capital Account of the transferee to the extent it relates to the transferred Ownership Interest in accordance with
Section 1.704-1(b)(2)(iv) of the Regulations, and (ii) the transferee shall be treated as the transferor for purposes of allocations and distributions pursuant to Article 9 to the extent that such allocations and distributions
relate to the transferred Ownership Interest. 
 (c) The manner in which Capital Accounts are to be maintained pursuant to
this Section 8.4 is intended to comply with the requirements of Section 704(b) of the Code and the Regulations thereunder. If in the opinion of the Company’s accountants or tax counsel the manner in which Capital Accounts are to
be maintained pursuant to the preceding provisions of this Section 8.4 should be modified in order to comply with Section 704(b) of the Code and the Regulations thereunder, then, notwithstanding anything to the contrary contained in
the preceding provisions of this Section 8.4, the method in which Capital Accounts are maintained shall be so modified; provided, however, that any change in the manner of maintaining Capital Accounts shall not materially alter the economic
agreement between or among the Equity Owners. 
 (d) Upon liquidation of the Company, liquidating Distributions shall be made
in accordance with the positive Capital Account balances of the Equity Owners, as determined after taking into account all Capital Account adjustments for the Company’s taxable year during which the liquidation occurs. Liquidation proceeds
shall be paid in accordance with Section 12.3. The Company may offset damages for breach of this Agreement by any Equity Owner whose interest is liquidated (either upon the withdrawal of the Equity Owner or the liquidation of the Company)
against the amount otherwise Distributable to such Equity Owner. No Equity Owner shall have any obligation to restore all or any portion of a deficit balance in such Equity Owner’s Capital Account. 
 (e) The Manager shall also: (i) make any adjustments that are necessary or appropriate to maintain equality between the Capital
Accounts of the Equity Owners and the amount of capital reflected on the Company’s balance sheet, as computed for book purposes, in accordance with Section 1.704-1(b)(2)(iv)(q) of the Regulations, and (ii) make any appropriate
modifications in 

  

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the event unanticipated events might otherwise cause this Agreement not to comply with Section 1.704-1(b) of the Regulations; provided that, to the
extent that any such adjustment is inconsistent with other provisions of this Agreement and would have a material adverse effect on any Equity Owner, such adjustment shall require the consent of such Equity Owner. 
 8.5 Withdrawal or Reduction of Equity Owners’ Contributions to Capital. 
 (a) Members shall not be permitted to withdraw as a Member. A Member that attempts a withdrawal in violation of the preceding sentence
shall indemnify and hold harmless the Company and the other Equity Owners for any loss in connection with such attempted withdrawal. 
 (b) An Equity Owner shall not receive a Distribution of any part of its Capital Contribution to the extent such Distribution would violate Section 9.5. 
 (c) An Equity Owner, irrespective of the nature of its Capital Contribution, does not have the right to demand and receive property in
return for its Capital Contribution. 
 ARTICLE 9 
 ALLOCATIONS, INCOME TAX, 
 DISTRIBUTIONS, ELECTIONS AND REPORTS 
 9.1 Allocations of Profits and Losses from Operations. Except as provided in Sections 9.2 and 9.3, the Profits and Losses for each Fiscal
Year shall be allocated as follows: 
 (a) Losses shall be allocated among the Equity Owners in accordance with their relative
Sharing Ratios. 
 (b) Profits shall be allocated as follows: 
 (i) First, to each Equity Owner which previously has been allocated Losses pursuant to Section 9.1(a) which have not been fully
offset by allocations of Profits pursuant to this Section 9.1(b)(i) (“Unrecovered Losses”) until the total amount of Profits allocated to each such Equity Owner pursuant to this Section 9.1(b)(i) is equal to the total
amount of Losses which have been allocated to such Equity Owner pursuant to Section 9.1(a). Profits allocated pursuant to this Section 9.1(b)(i) shall be allocated to the Equity Owners in proportion to their respective Unrecovered Losses;
and 
 (ii) Second, among the Equity Owners in accordance with their relative Sharing Ratios. 
  

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 9.2 Special Allocations to Capital Accounts. Notwithstanding Section 9.1 hereof: 

(a) This Agreement incorporates the “minimum gain chargeback” set forth in Sections 1.704-2(f) and (g) of the
Regulations, the “partner minimum gain chargeback” described in Section 1.704-2(i)(4) of the Regulations and the “qualified income offset” set forth in Section 1.704-1(d) of the Regulations as if those provisions were
fully set forth in this Agreement and shall apply as provided in those Regulations. 
 (b) The Losses allocated pursuant to
Section 9.1 hereof shall not exceed the maximum amount of Losses that can be so allocated without causing any Equity Owner to have a Deficit Capital Account at the end of any Fiscal Year. In the event that some, but not all, of the Equity
Owners would have Deficit Capital Accounts as a consequence of an allocation of Losses pursuant to Section 9.1 hereof, the limitation set forth in the preceding sentence shall be applied on an Equity Owner by Equity Owner basis so as to
allocate the maximum permissible Losses to each Equity Owner under Section 1.704-1(b)(2)(ii)(d) of the Regulations. All Losses in excess of the limitation set forth in this Section 9.2(b) shall be allocated to the Equity Owners
in proportion to their respective positive Capital Account balances, if any, and thereafter to the Equity Owners in accordance with their interests in the Company as determined by the Manager in its reasonable discretion. In the event that any
Equity Owner would have a Deficit Capital Account at the end of any Fiscal Year, the Capital Account of such Equity Owner shall be specially credited with items of Company income (including gross income) and gain in the amount of such excess as
quickly as possible. 
 (c) Items of Company loss, deduction and expenditures described in Section 705(a)(2)(B) of
the Code which are attributable to any nonrecourse debt of the Company and are characterized as partner nonrecourse deductions under Section 1.704-2(i) of the Regulations shall be allocated to the Equity Owners’ Capital Accounts in
accordance with said Section 1.704-2(i) of the Regulations. 
 (d) Beginning in the first taxable year in which
there are allocations of “nonrecourse deductions” (as described in Section 1.704-2(b) of the Regulations), such deductions shall be allocated to the Equity Owners in the same manner as Loss is allocated for such period.

 (e) To the extent that an adjustment to the adjusted tax basis of any Company asset pursuant to Section 734(b) or
743(b) of the Code is required pursuant to Section 1.704-1(b)(2)(iv)(m)(2) or 1.704-1(b)(2)(iv)(m)(4) of the Regulations, to be taken into account in determining Capital Accounts as the result of a Distribution to an Equity Owner
in complete liquidation of its Ownership Interest, the amount of such adjustment to Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis), and such
gain or loss shall be 

  

 14 

 
specially allocated to the Equity Owners in accordance with their interests in the Company in the event Section 1.704-1(b)(2)(iv)(m)(2) of the
Regulations applies, or to the Equity Owner to whom such Distribution was made in the event Section 1.704-1(b)(2)(iv)(m)(4) of the Regulations applies. 
 (f) The Issuance Items shall be allocated among the Equity Owners so that, to the extent possible, the net amount of such Issuance Items,
together with all other allocations under this Agreement to each Equity Owner, shall be equal to the net amount that would have been allocated to each such Equity Owner if the Issuance Items had not been realized. 
 9.3 Credit or Charge to Capital Accounts. Any credit or charge to the Capital Accounts of the Equity Owners pursuant to the Regulatory Allocations
shall be taken into account in computing subsequent allocations of Profits and Losses pursuant to Section 9.1, so that the net amount of any items charged or credited to Capital Accounts pursuant to Section 9.1 and the Regulatory
Allocations hereof and this Section 9.3 shall to the extent possible, be equal to the net amount that would have been allocated to the Capital Account of each Equity Owner pursuant to the provisions of this Article 9 if the special
allocations required by the Regulatory Allocations hereof had not occurred; provided, however, that no such allocation will be made pursuant to this Section 9.3 if (i) the Regulatory Allocation had the effect of offsetting a prior
Regulatory Allocation or (ii) the Regulatory Allocation likely will be offset by another Regulatory Allocation in the future (e.g., Regulatory Allocation of “nonrecourse deductions” under Section 9.2(c) that likely
will be subject to a subsequent “minimum gain chargeback” under Section 9.2(a)). 
 9.4 Distributions. Except as
provided in Sections 8.4(d) (with respect to liquidating Distributions) and 9.6 (with respect to limitations on Distributions), the Company shall Distribute Distributable Cash not less frequently than once per year to the Equity Owners in
accordance with their Sharing Ratios. 
 9.5 Withholding. To the extent the Company is required by applicable law or any tax treaty to
withhold or to make tax payments on behalf of or with respect to any Equity Owner (including, by way of example and not limitation, any withholding required by the State of Pennsylvania with respect to Equity Owners that are not residents of
Pennsylvania), the Company shall withhold amounts from distributions to Equity Owners and make such tax payments as so required. The amount of such payments shall constitute an advance by the Company to such Equity Owner and shall be repaid to the
Company by reducing the amount of the current or next succeeding distributions that would otherwise have been made to such Equity Owner or, if such distributions are not sufficient for that purpose, such Equity Owner shall pay to the Company the
amount of such insufficiency. 
 9.6 Limitation Upon Distributions. No Distribution shall be made if such Distribution would violate
the Act. 
  

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 9.7 Interest on and Return of Capital Contributions. No Member shall be entitled to interest on
its Capital Contribution or return of its Capital Contribution, except as otherwise specifically provided for herein. 
 9.8 Loans to
Company. Nothing in this Agreement shall prevent any Equity Owner from making secured or unsecured loans to the Company (i) pursuant to Section 8.3 or (ii) if such loans are approved by all the Members, by agreement with the
Company. 
 9.9 Returns and Other Elections. The Manager shall exercise diligent reasonable efforts to cause the preparation and
timely filing of all tax returns required to be filed by the Company pursuant to the Code and all other tax returns deemed necessary and required in each jurisdiction in which the Company does business. Copies of such returns, or pertinent
information therefrom, shall be furnished to the Equity Owners within a reasonable amount of time after the end of the Fiscal Year. All elections permitted to be made by the Company under federal or state laws shall be made by the Manager in its
sole discretion; provided, however, that the Manager shall make any tax election requested by all of the Members, and provided further that the Manager shall cause the Company to make an appropriate election to treat the expenses incurred by the
Company in connection with the formation and organization of the Company to be amortized over the period allowed by Code Section 709 to the extent that such expenses constitute “organizational expenses” of the Company within the
meaning of Code Section 709(b)(3). Each Equity Owner shall report partnership items on the Equity Owner’s tax returns in a manner that is consistent with the treatment of such items on the Company’s tax returns, except as otherwise
agreed to by all of the Members. Each Equity Owner will provide, and will cause its Affiliates to provide, such information as the Company may request such that the Company may adequately and accurately complete tax returns required to be filed by
the Company and respond to enforceable administrative information requests (or discovery in litigation). 
 9.10 Tax Matters Partner.

 (a) Williams is hereby designated the Tax Matters Partner (“TMP”) as defined in
Section 6231(a)(7) of the Code. The TMP and the other Equity Owners shall use their reasonable efforts to comply with the responsibilities outlined in Sections 6221 through 6233 of the Code (including any Regulations promulgated
thereunder), and in doing so shall incur no liability to any other Equity Owner. 
 (b) In the event of an audit,
investigation, settlement or review, the TMP shall, at the expense of the Company, participate in, and retain accountants and other professionals to participate in, the audit, investigation, settlement or review, and, if deemed appropriate by the
TMP in its sole discretion, contest assertions by the auditing agent or otherwise that may be adverse to the Equity Owners, the Company and the Company’s filing position. Each Equity Owner shall cooperate (which, in the case of an Equity Owner
that is a partnership or disregarded entity for United States federal income tax purposes, shall include 

  

 16 

 
obtaining the cooperation of each of its partners or members) with the TMP and do or refrain from doing (and cause any such member to do or refrain from
doing) any and all things reasonably required by the TMP in connection with such audit or contest, administrative settlement, judicial review, or other resulting administrative or judicial proceedings. 
 (c) Each Equity Owner who elects to participate in any administrative proceedings relating to the determination of partnership items at
the Company level shall be responsible for any expenses incurred by such Equity Owner in connection with such participation. The cost of any resulting audits or adjustments of an Equity Owner’s tax return shall be borne solely by the affected
Equity Owner. 
 9.11 Certain Allocations for Income Tax (But Not Book Capital Account) Purposes. 
 (a) In accordance with Section 704(c)(1)(A) of the Code and Section 1.704-1(b)(2)(iv)(d) of the Regulations, if an
Equity Owner contributes property with an initial Gross Asset Value that differs from its adjusted basis at the time of contribution, income, gain, loss and deductions with respect to the property shall, solely for income tax purposes (and
not for Capital Account purposes), be allocated among the Equity Owners so as to take account of any variation between the adjusted basis of such property to the Company and its Gross Asset Value at the time of contribution pursuant to the remedial
method under Section 1.704-3(d) of the Regulations. In the event the Gross Asset Value of any Company asset is adjusted pursuant to clause (a) of the definition of Gross Asset Value, subsequent allocations of income, gain,
loss, and deduction with respect to such asset shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its Gross Asset Value in the same manner as under Code Section 704(c) and the
Regulations thereunder. 
 (b) All recapture of income tax deductions resulting from sale or disposition of Company Property
shall be allocated to the Equity Owners to whom the deduction that gave rise to such recapture was allocated hereunder to the extent that such Equity Owner is allocated any gain from the sale or other disposition of such property. 
 ARTICLE 10 
 TRANSFERABILITY

 10.1 General. 
 (a) An Equity Owner shall only have the right to Transfer all or any portion of the Equity Owner’s Ownership Interests if such Transfer is in full compliance with the provisions herein. 
  

 17 

 (b) Each Equity Owner hereby acknowledges the reasonableness of the restrictions on
Transfer of Ownership Interests imposed by this Agreement in view of the Company’s purposes and the relationship of the Equity Owners. Accordingly, the restrictions on Transfer contained herein shall be specifically enforceable. 
 (c) In the event that any Equity Owner Hypothecates any of its Ownership Interest, any such Hypothecation shall be made pursuant to a
pledge or hypothecation agreement that requires the pledgee or secured party to be bound by all the terms and conditions of this Article 10, and the pledging Equity Owner shall provide notice of such Hypothecation to the Manager at such time
that the Equity Owner first contemplates such Hypothecation. 
 10.2 Conditions to Recognition of Transferee. 
 (a) If a Transferring Equity Owner Transfers an Ownership Interest to a Person who is not already a Member, as a condition to recognizing
the effectiveness and binding nature of such Transfer (subject to Section 10.3), the Manager may require the Transferring Equity Owner and the proposed successor-in-interest to execute, acknowledge and deliver to the Manager such instruments of
transfer, assignment and assumption and such other certificates, representations and documents, and to perform all such other acts which the Manager may deem necessary or desirable to accomplish any one or more of the following: 
 (i) Constitute such successor-in-interest as an Equity Owner; 
 (ii) Confirm that the proposed successor-in-interest as an Economic Interest Owner, or to be admitted as a Member, has accepted, assumed
and agreed to be subject to and bound by all of the terms, obligations and conditions of this Agreement, as the same may have been further amended (whether such Person is to be admitted as a new Member or will merely be an Economic Interest Owner);

 (iii) Preserve the Company after the completion of such Transfer under the laws of each jurisdiction in which the Company
is qualified, organized or does business; 
 (iv) Maintain the status of the Company as a partnership for federal tax
purposes; and 
 (v) Assure compliance with any applicable state and federal laws and regulations, including Securities Laws.

 (b) The Transferring Equity Owner hereby indemnifies the Company and the remaining Members against any and all loss,
damage, or expense arising directly or indirectly as a result of any Transfer or purported Transfer in violation of this Article 10. All costs and expenses incurred by the Company in 

  

 18 

 
connection with any Transfer pursuant to this Article 10 and another Person becoming a Member or an Economic Interest Owner, in respect of such interest
or such part thereof, including the fees and disbursements of counsel, shall be paid by the Transferring Equity Owner, including any expenses associated with any part year allocation made pursuant to Section 11.2. Any indemnification or payment
due pursuant to this Section 10.2(b) shall be paid at or before the time of the Transfer. 
 (c) Any Transferring Equity
Owner shall notify the Company and the non-Transferring Members of the proposed Transfer in writing at least thirty (30) days prior to the proposed Transfer, which notice must include the names and addresses of the transferor and transferee,
the taxpayer identification numbers of the transferor and transferee, if known, and the proposed date of the Transfer. Within thirty (30) days of the Transfer or, if earlier, by March 31 following the Transfer, the Transferring Equity
Owner shall confirm that the Transfer occurred in accordance with such notice. 
 10.3 Transferee Not Member in Absence of Consent.

 (a) In addition to the requirements of Section 10.2, if all of the non-Transferring Members do not Approve the
proposed Transfer of the Transferring Equity Owner’s Ownership Interest to a transferee which is not a Member immediately prior to the Transfer (which Approval shall not be unreasonably withheld), then the proposed Transfer shall be null and
void. Notwithstanding the preceding sentence of this Section 10.3(a), the Approval of the non-Transferring Members shall not be required for a Member to make a Transfer (and the successor-in-interest shall be automatically admitted as a Member)
if (x) such successor-in-interest is an Affiliate of the Transferring Member or (y) such Member is required to make such Transfer by applicable law or a court of competent jurisdiction. If, notwithstanding the first sentence of this
Section 10.3(a), a court of competent jurisdiction permits such Transfer or if a Transfer is made pursuant to the preceding sentence, the transferee shall have no right to participate in the management of the business and affairs of the Company
or to become a Member and shall be merely an Economic Interest Owner, unless admitted as a Member by all of the non-Transferring Members. No Transfer of a Member’s Membership Interest (other than a Transfer of all or a portion of an Equity
Owner’s Ownership Interest to the Company, but including any other Transfer of the Economic Interest or any other Transfer which has not been approved as provided herein) shall be effective (x) unless the written notice has been provided
to the Company and the non-transferring Members in accordance with Section 10.2(c) and (y) until the last day of the calendar month in which all requirements of Section 10.2 have been satisfied. 
 (b) Upon and contemporaneously with any Transfer of an Equity Owner’s Ownership Interest, the Transferring Equity Owner shall cease
to have any residual rights associated with the Ownership Interest Transferred to the transferee. If a Member Transfers all of its Membership Interest, upon the effective date of the Transfer, such Member shall cease to be a Member. 
  

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 (c) If a Transfer is Approved in writing by all of the Members, the Company shall admit
the transferee as a Member, so long as the transferee executes and delivers to the Manager a copy of this Agreement or a counterpart hereof in form and substance satisfactory to the Manager whereby such Person agrees expressly to be bound by the
provisions of this Agreement. 
 ARTICLE 11 
 ISSUANCE OF MEMBERSHIP INTERESTS OR ECONOMIC INTERESTS 
 11.1 Issuance of Additional Membership
Interests. From the date of the formation of the Company, any Person acceptable to all of the Members (but not otherwise) may become a Member in the Company by the issuance by the Company of Membership Interests for such consideration as the
Members by their unanimous written Approval shall determine, subject to the terms and conditions of this Agreement. If an issuance of additional Membership Interests is Approved in writing by all of the Members, the Company shall admit the Person
receiving such issuance as a Member, so long as such Person executes and delivers to the Manager a copy of this Agreement or a counterpart hereof or agreement ratifying and adopting this Agreement in form and substance satisfactory to the Manager
whereby such Person agrees expressly to be bound by the provisions of this Agreement. 
 11.2 Part Year Allocations With Respect to New
Equity Owners. No new Equity Owner shall be entitled to any retroactive allocation of losses, income, or expense deductions incurred by the Company. At the time a new Member is admitted or a new Economic Interest Owner acquires an Economic
Interest (or a transfer to an Economic Interest Owner is effective) and in accordance with the provisions of Section 706(d) of the Code and the Regulations thereunder, the Manager may, at its option, close the Company books (as though the
Company’s Fiscal Year had ended) or make pro rata allocations of loss, income, and expense deductions to a new Equity Owner for that portion of the Company’s Fiscal Year in which a Person became an Equity Owner. 
 ARTICLE 12 
 DISSOLUTION AND
TERMINATION 
 12.1 Dissolution. 
 (a) The Company shall be dissolved only upon the occurrence of any of the following events: 
 (i) by the unanimous Approval of the Members; 
  

 20 

 (ii) the sale or other disposition by the Company of all or substantially all of the
Company’s assets and the collection of all amounts derived from any such sale or other disposition, including all amounts payable to the Company under any promissory notes or other evidences of indebtedness taken by the Company (unless the
Members shall elect to distribute such indebtedness to the Members in liquidation), and the satisfaction of the liabilities and contingent liabilities of the Company in connection with such sale or other disposition; or 
 (iii) the occurrence of any other event that, under the Act, would cause the dissolution of the Company or that would make it unlawful for
the business of the Company to be continued. 
 Notwithstanding anything to the contrary in the Act, the Company shall not be dissolved upon
the death, retirement, resignation, expulsion, Bankruptcy or dissolution of an Equity Owner. 
 (b) As soon as possible
following the occurrence of any of the events specified in Section 12.1(a), an appropriate representative of the Company shall execute all documents required by the Act at the time of dissolution and file or record such statements with the
appropriate officials. 
 12.2 Effect of Dissolution. Upon dissolution, the Company shall cease to carry on its business, except
insofar as may be necessary for the winding up of its business, but its separate existence shall continue until winding up and Distribution is completed. 
 12.3 Winding Up, Liquidation and Distribution of Assets. 
 (a) Upon dissolution, an
accounting shall be made by the Manager of the accounts of the Company and of the Company’s assets, liabilities, and results of operations from the date of the last previous accounting until the date of dissolution. The Manager shall
immediately proceed to wind up the affairs of the Company. 
 (b) If the Company is dissolved and its affairs are to be wound
up, the Manager shall: 
 (i) Sell or otherwise liquidate all of the Company Property as promptly as practicable (except to
the extent that the Manager may determine to Distribute in kind any assets to the Equity Owners); 
 (ii) Allocate any Profit
or Loss resulting from such sales to the Equity Owners’ Capital Accounts in accordance with Article 9 hereof; 
 (iii) Discharge all liabilities of the Company, including liabilities to Equity Owners who are also creditors, to the extent otherwise permitted by law, other than liabilities to Equity Owners for Distributions and the return of capital,
and establish such Reserves as may be reasonably 

  

 21 

 
necessary to provide for contingent liabilities of the Company (for purposes of determining the Capital Accounts of the Equity Owners, the amounts of such
Reserves shall be deemed to be an expense of the Company); and 
 (iv) Distribute the remaining assets to the Equity Owners in
accordance with their positive Capital Account balances, as follows: 
 (1) The positive balance (if any) of each Equity
Owner’s Capital Account (as determined after taking into account all Capital Account adjustments for the Company’s Fiscal Year during which the liquidation occurs) shall be Distributed to the Equity Owners, either in cash or in kind, as
determined by the Manager, with any Company Property Distributed in kind being valued for this purpose at their fair market value. Any such Distributions to the Equity Owners in respect of their Capital Accounts shall be made in accordance with the
time requirements set forth in Section 1.704-1(b)(2)(ii)(b)(2) of the Regulations; and 
 (2) If any Company
Property is to be Distributed in kind, the net fair market value of such Company Property as of the date of dissolution shall be determined by agreement of the Members, or, if the Members do not agree, by an appraiser selected by the Manager. Such
Company Property shall be deemed to have been sold as of the date of dissolution for its fair market value, and the Capital Accounts of the Equity Owners shall be adjusted pursuant to the provisions of Article 9 and Section 8.4 of this
Agreement to reflect such deemed sale. 
 (c) Notwithstanding anything to the contrary in this Agreement, upon a liquidation
within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Regulations, if any Equity Owner has a Deficit Capital Account (after giving effect to all contributions, Distributions, allocations and other Capital Account adjustments for all
Fiscal Years, including the year during which such liquidation occurs), such Equity Owner shall have no obligation to make any Capital Contribution so as to restore its Capital Account to zero, and the negative balance of such Equity Owner’s
Capital Account shall not be considered a debt owed by such Equity Owner to the Company, to the other Equity Owners, or to any other Person for any purpose whatsoever. 
 (d) The Manager shall comply with any requirements of applicable law pertaining to the winding up of the affairs of the Company and the
final Distribution of its assets. 
 12.4 Filing or Recording Statements. Upon the conclusion of winding up, the appropriate
representative of the Company shall execute all documents required by the Act at the time of completion of winding up and file or record such documents with the appropriate officials. 
  

 22 

 12.5 Return of Contribution Nonrecourse to Other Equity Owners. Except as provided by law or as
expressly provided in this Agreement, upon dissolution, each Equity Owner shall look solely to the assets of the Company for the return of its Capital Contribution or any other Distributions. If the Company Property remaining after the payment or
discharge of the debts and liabilities of the Company is insufficient to return the cash contribution of one or more Equity Owners, such Equity Owners shall have no recourse against any other Equity Owner. 
 ARTICLE 13 
 BOOKS AND RECORDS

 13.1 Accounting Period. The Company’s accounting period shall be the Fiscal Year. 
 13.2 Accounting Principles. For financial reporting purposes, the Company shall use accounting principles applied on a consistent basis using the
accrual method of accounting determined by the Manager, unless the Company is required to use a different method of accounting for federal income tax purposes, in which case that method of accounting shall be the Company’s method of accounting.

 13.3 Books of Account and Records. At the expense of the Company, proper and complete records, books of account and other relevant
Company documents shall be maintained and preserved, during the term of the Company, and for five years after dissolution, by the Manager, in which shall be entered fully and accurately all transactions and other matters relating to the
Company’s business in such detail and completeness as is customary and usual for businesses of the type engaged in by the Company. The books and records shall be open to the reasonable inspection and examination of the Members or their duly
authorized representatives, upon reasonable request, during ordinary business hours at the requesting Member’s expense. At a minimum the Company shall keep at its principal place of business the following records: 
 (a) A current list of the full name and last known business, residence, or mailing address of each Equity Owner and Manager, both past and
present; 
 (b) A copy of the Certificate of Formation and all amendments thereto, together with executed copies of any powers
of attorney pursuant to which any amendment has been executed; 
 (c) Copies of the Company’s federal, state, and local
income tax returns and reports, if any, for the four most recent Fiscal Years; 
  

 23 

 (d) Copies of the Company’s currently effective written Agreement, copies of any
writings permitted or required with respect to an Equity Owner’s obligation to contribute cash, property or services, and copies of any financial statements of the Company for the three most recent Fiscal Years; 
 (e) Records of any Manager decisions; 
 (f) Minutes of every annual, special, and court-ordered meeting of the Members, if any; and 
 (g) Any written Approvals obtained from Members for actions taken by Members without a meeting. 
 13.4 List of Equity
Owners. Upon written request of any Member, a Manager shall provide a list showing the names, addresses and Ownership Interests of all Equity Owners. Economic Interest Owners shall have no rights to information under this Article 13.

 13.5 Audits. If required by applicable law, the rules of any exchange on which the Member’s (or an Affiliate’s of the
Member) securities are traded or of the Securities Exchange Commission or a third-party lender to the Member or an Affiliate of the Member, the Manager shall cause an independent certified public accounting firm to audit the Books and Records of the
Company once each calendar year and to prepare statements and reports of such audit to be delivered to the Members by February 15 following each such calendar year. 
 ARTICLE 14 
 DISPUTES 
 14.1 Dispute Resolution. Any controversy, claim, deadlock or dispute between or among two or more of the Equity Owners, the Manager, the Company,
and any of their respective Affiliates (each, a “Dispute Party”) arising out of, relating to or in connection with the Company or its assets (a “Dispute”), and that is not otherwise settled by agreement between or
among the Dispute Parties, shall be exclusively and finally resolved pursuant to the provisions and procedures set forth in this Article 14. Notwithstanding the preceding sentence, a deadlock or dispute regarding whether a capital project
within the Semi-Annual Capital Budget is to be Approved shall not be a Dispute subject to Section 14.2 or 14.3 and the Members hereby waive its right to litigate in regards to such a deadlock or dispute; provided that whether an expenditure would be
within the Semi-Annual Capital Budget or the Semi-Annual O&M Budget shall be a Dispute subject to Section 14.2 and 14.3. Without limiting the generality of the first sentence of this Section, the following shall be considered Disputes for this
purpose: (a) all questions relating to the interpretation or breach of this Agreement, (b) all questions relating to any representations, negotiations and other proceedings leading to the execution of this Agreement or such contribution
agreement and (c) all questions regarding the application of this Article 14 and the arbitration provisions contained 

  

 24 

 
herein. Notwithstanding the foregoing provisions of this Section 14.1 (other than the second sentence of this Section), any legal action for a
preliminary injunction or other prejudgment relief will be resolved by the arbitrator appointed in accordance with Section 14.3; provided, that, at any time before the arbitrator has been appointed, any Dispute Party may seek a preliminary
injunctive or other prejudgment relief from the Delaware Court of Chancery or other court of competent jurisdiction to the extent necessary to preserve the status quo or to preserve a Dispute Party’s ability to obtain meaningful relief
pending the outcome of the arbitration proceeding under this Article 14. Any Dispute Party may bring an action in the Delaware Court of Chancery or another court of competent jurisdiction to compel arbitration of any Dispute after the procedure
under Section 14.2 is exhausted; provided, that to the fullest extent permitted by Law, each Dispute Party hereby waives and relinquishes any right under the Act or otherwise to compel the resolution of any substantive issues regarding a
Dispute in the Delaware Court of Chancery or any other court, or to request any other relief from the Delaware Court of Chancery or any other court except as specifically set forth in this Article 14. 
 14.2 Executive Mediation. In the event of any Dispute, upon written request of any Dispute Party, such Dispute shall immediately be referred to
one representative of the executive management designated by each Dispute Party in respect of such Dispute who is authorized to settle such Dispute. Such representatives shall promptly meet in a good faith effort to resolve such Dispute. If the
representatives designated by the relevant Dispute Parties pursuant to this Section 14.2 do not resolve such Dispute within ten (10) days after such written request, such Dispute shall be exclusively and finally resolved by binding
arbitration in accordance with the provisions and procedures set forth in Section 14.3. 
 14.3 Arbitration. The arbitration shall
be administered by the American Arbitration Association, or a successor organization (the “AAA”), under its Commercial Arbitration Rules. The arbitration shall be conducted by a single arbitrator chosen under the AAA’s
Commercial Arbitration Rule and such arbitrator shall have at least ten (10) years experience practicing in the oil and gas industry. 
 (a) The site of arbitration shall be Pittsburgh, Pennsylvania, unless otherwise agreed by the Dispute Parties. 
 (b) The Dispute Parties shall diligently and expeditiously proceed with arbitration. The arbitrator shall be instructed to render a written decision within forty-five (45) days after the conclusion of the hearing
or the filing of such briefs as may be authorized by the arbitrator, subject to any reasonable delay due to unforeseen circumstances. Except to the extent the Dispute Parties’ remedies may be limited by the terms of this Agreement, the
arbitrator shall be empowered to award any remedy available under the laws of the State of Pennsylvania including monetary damages and specific performance. The arbitrator shall not have the power to amend or add to this Agreement. The award of the
arbitrator shall be in writing with reasons for such award and signed by the arbitrator. Any award rendered shall be final and binding. Judgment rendered by the arbitrator may be entered in any court having jurisdiction thereof. 
  

 25 

 (c) The Dispute Parties hereto hereby waive any rights to appeal or to review of such
award by any court or tribunal. The Dispute Parties further undertake to carry out without delay the provisions of any arbitral award or decision, and each agrees that any such award or decision may be enforced by any competent tribunal 

(d) The costs of such arbitration shall be determined by and allocated between the Dispute Parties by the arbitrator in its award. This
Section 14.3 constitutes an independent contract to arbitrate all disputes between the potential Dispute Parties, including disputes regarding contract formation and whether a Dispute Party is entitled to quasi-contractual or quantum
meruit recovery from another Dispute Party. Unless otherwise agreed in writing, the Dispute Parties and the Company, the Manager and any Members that are not Dispute Parties shall continue to perform their respective obligations hereunder during
any arbitration proceeding by the Dispute Parties in accordance with this Section 14.3. 
 ARTICLE 15 
 MISCELLANEOUS PROVISIONS 
 15.1
Notices. Any notice, demand, or communication required or permitted to be given by any provision of this Agreement shall be deemed to have been sufficiently given or served if sent by facsimile, delivered by messenger, overnight courier, or
mailed, certified first class mail, postage prepaid, return receipt requested, and addressed or sent to the Equity Owner’s address, as set forth on Exhibit 4.1 and, if applicable, Exhibit 4.2, or the Company’s
address as set forth in Section 2.3. Such notice shall be effective, (a) if delivered by messenger or by overnight courier, upon actual receipt (or if the date of actual receipt is not a business day, upon the next business day);
(b) if sent by facsimile mail transmission, upon confirmation of receipt; or (c) if mailed, upon the earlier of (i) three (3) business days after deposit in the mail and (ii) the delivery as shown by return receipt therefor.
Any Equity Owner or the Company may change its address by giving notice in writing to the Company and the other Equity Owners of its new address. 
 15.2 Application of Delaware Law. This agreement shall be construed and enforced in accordance with and governed by the laws of the state of Delaware applicable to agreements made and to be performed entirely within such state other
than such laws, rules, regulations and case law that would result in the application of the laws of a jurisdiction other than the state of Delaware. 
 15.3 Waiver of Action for Partition. During the term of the Company, each Equity Owner irrevocably waives any right that it may have to maintain any action for partition with respect to the Company Property.

  

 26 

 15.4 Amendments. Except as specifically provided in Sections 4.1 and 4.2, this Agreement may
not be amended except by the unanimous Approval of all of the Members. 
 15.5 Execution of Additional Instruments. Each Equity Owner
shall execute such other and further statements of interest and holdings, designations, powers of attorney, and other instruments necessary to comply with any laws, rules, or regulations. 
 15.6 Construction. Whenever the singular number is used in this Agreement and when required by the context, the same shall include the plural and
vice versa, and the masculine gender shall include the feminine and neuter genders and vice versa. The word “including” means “including without limitation” and “or” means “and/or”, unless (in
either case) the context clearly requires otherwise. 
 15.7 Effect of Inconsistencies with the Act. It is the express intention of
the Equity Owners and the Company that this Agreement shall be the sole source of agreement among them, and, except to the extent that a provision of this Agreement expressly incorporates federal income tax rules by reference to sections of the Code
or Regulations or is expressly prohibited or ineffective under the Act, this Agreement shall govern, even when inconsistent with, or different than, the provisions of the Act or any other law or rule. In the event that the Act is subsequently
amended or interpreted in such a way to make valid any provision of this Agreement that was formerly invalid, such provision shall be considered to be valid from the effective date of such interpretation or amendment. The duties and obligations
imposed on the Members as such shall be those set forth in this Agreement, which is intended to govern the relationship among the Company and the Equity Owners, notwithstanding any provision of the Act or common law to the contrary. 
 15.8 Waivers. The failure of any Equity Owner or the Company to seek redress for violation of or to insist upon the strict performance of any
covenant or condition of this Agreement shall not prevent a subsequent act, which would have originally constituted a violation, from having the effect of an original violation. 
 15.9 Rights and Remedies Cumulative. The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by
any Equity Owner or the Company shall not preclude or waive the right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance, or otherwise. 
 15.10 Attorneys’ Fees. Should the Company or any Equity Owner reasonably retain counsel for the purpose of enforcing or preventing breach of
any provision of this Agreement, including instituting any action or proceeding to enforce any provision of this Agreement, for damages by reason of any alleged breach of any provision of this Agreement, for a declaration of such Person’s
rights or obligations under this Agreement, or for any other judicial remedy, then, if the matter is settled by judicial determination or arbitration, the prevailing party (whether at trial, on appeal, or 

  

 27 

 
arbitration) shall be entitled, in addition to such other relief as may be granted, to be reimbursed by the losing party for all costs and expenses incurred,
including reasonable attorneys’ fees and costs for services rendered to the prevailing party or parties. If both parties are entitled to judgments or arbitration awards, the party with the larger judgment or arbitration award shall be deemed
the prevailing party for purposes of the immediately preceding sentence. 
 15.11 Severability. If any provision of this Agreement or
the application thereof to any person or circumstance shall be invalid, illegal, or unenforceable to any extent, the remainder of this Agreement and the application thereof shall not be affected and shall be enforceable to the fullest extent
permitted by law. Without limiting the generality of the foregoing sentence, to the extent that any provision of this Agreement is prohibited or ineffective under the Act or common law, this Agreement shall be considered amended to the smallest
degree possible in order to make the Agreement effective under the Act or common law. 
 15.12 Heirs, Successors, and Assigns. Each
and all of the covenants, terms, provisions, and agreements herein contained shall be binding upon and inure to the benefit of the parties hereto and, to the extent permitted by this Agreement, their respective heirs, legal representatives,
successors, and assigns. 
 15.13 Creditors. None of the provisions of this Agreement shall be for the benefit of or enforceable by
any creditors of the Company. 
 15.14 Counterparts; Facsimile/PDF. This Agreement may be delivered by facsimile or PDF and executed
in counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. 
 15.15 Oral
Representations. Any oral representations or modifications concerning this Agreement shall be of no force or effect unless contained in a subsequent written modification signed by the Equity Owner to be charged. 
 15.16 Investment Representations. 
 (a) The undersigned Equity Owners understand (i) that the Ownership Interests evidenced by this Agreement have not been registered under the Securities Laws because the Company is issuing these Ownership
Interests in reliance upon the exemptions from the registration requirements of the Securities Laws providing for issuance of securities not involving a public offering, (ii) that the Company has relied upon the fact that the Ownership
Interests are to be held by each Equity Owner for investment, and (iii) that exemption from registrations under the Securities Laws would not be available if the Ownership Interests were acquired by an Equity Owner with a view to distribution.

 (b) Accordingly, each Equity Owner hereby confirms to the Company that such Equity Owner is acquiring the Ownership
Interests for such Equity Owner’s own account, for investment, and not with a view to the resale or distribution thereof. Each Equity Owner agrees not to transfer, sell, or offer for 

  

 28 

 
sale any portion of the Ownership Interests unless there is an effective registration relating thereto under the Securities Laws or unless the holder of
Ownership Interests delivers to the Company an opinion of counsel, satisfactory to the Company, that such registration or other qualification under applicable Securities Laws is not required in connection with such transfer, offer, or sale. Each
Equity Owner understands that the Company is under no obligation to register the Ownership Interests or to assist such Equity Owner in complying with any exemption from registration under the Securities Laws if such Equity Owner should, at a later
date, wish to dispose of the Ownership Interest. Furthermore, each Equity Owner realizes that the Ownership Interests are unlikely to qualify for disposition under Rule 144 of the Securities and Exchange Commission unless such Equity Owner is
not an “affiliate” of the Company, the Ownership Interest has been beneficially owned and fully paid for by such Equity Owner for at least six months and the Company is complying with certain public information requirements. 
 (c) Each Equity Owner, prior to acquiring an Ownership Interest, has made an investigation of the Company and its business, and the
Company has made available to each Equity Owner all information with respect to the Company which such Equity Owner needs in order to make an informed decision to acquire the Ownership Interest. Each Equity Owner has relied on its own tax and legal
advisors in connection with such Equity Owner’s decision to acquire an Ownership Interest. Each Equity Owner considers itself to be a Person possessing experience and sophistication as an investor which are adequate for the evaluation of the
merits and risks of such Equity Owner’s investment in the Ownership Interest. 
 15.17 Representations and Warranties. As of the
date hereof, each of the Equity Owners hereby makes each of the representations and warranties applicable to such Equity Owner as set forth in Section 15.16 hereof, and such warranties and representations shall survive the execution of this
Agreement. 
  

 29 

 CERTIFICATE 
 The undersigned hereby agree, acknowledge, and certify that the foregoing Agreement constitutes the Agreement of RW Gathering, LLC adopted by the Equity Owners as of the Effective Date. 
  

			
	 COMPANY:

	
	RW GATHERING, LLC
		
	By:	 	R.E. Gas Development, LLC
	Its:	 	Manager
		
	By:	 	 /s/ Benjamin W. Hulburt

	Name:	 	Benjamin W. Hulburt
	Title:	 	President and Chief Executive Officer
	
	 MEMBERS:

	
	 WILLIAMS PRODUCTION COMPANY, LLC

		
	By:	 	 /s/ Jeff Schmuhl

	Name:	 	Jeff Schmuhl
	Title:	 	Director
	
	 R.E. GAS DEVELOPMENT, LLC

		
	By:	 	 /s/ Benjamin W. Hulburt

	Name:	 	Benjamin W. Hulburt
	Title:	 	President and Chief Executive Officer

  

 EXHIBIT 4.1 
 TO 
 LIMITED LIABILITY
COMPANY AGREEMENT OF RW GATHERING, LLC 
 DATED
EFFECTIVE AS OF JUNE 18, 2009 
 MEMBERS

  

			
	 Names, Addresses, Facsimile Numbers, and
 Email Addresses of Members
	  	 Initial Capital Contributions

		
	 Williams Production Company, LLC
 Attn: Director Gas
Management
 One Williams Center, Mail Drop 36-6
 Tulsa, OK 74172

 Fax: ( 918 ) 573-1324
 Email:                                      
                                         
                           
	  	Cash $506,288
		
	 R.E. Gas Development, LLC
 476 Rolling Ridge Drive, Suite
300
 State College, PA 16801
 Fax: ( 814 ) 278-7286
 Email:                                      
                                         
                           
	  	 W. Clearfield County right-of-way;
 Berkley Tap Site
 Eckerd Pipeline & Tap Site
 (Westmoreland County)
 Rights-of-Way & Surface Rights to Equitrans & Texas
Eastern Pipelines
 (Westmoreland County)
 Pannizzi/Eaglehouse Pipeline Extension & right-of way $1,012,576

 EXHIBIT 4.2 
 TO 
 LIMITED LIABILITY
COMPANY AGREEMENT OF RW GATHERING, LLC 
 DATED
EFFECTIVE AS OF JUNE 18, 2009 
 ECONOMIC
INTEREST OWNERS 
  

					
	 Name/Address
	 	 Facsimile Number
	 	 Email Address

	NONE	 	AS OF	 	EFFECTIVE DATE

 ADDENDUM I 
 DEFINITIONS 
 AAA. As defined in Section 14.3. 
 Act. The Delaware Limited Liability Company Act, as amended from time to time. 
 Affiliate. (a) any Person directly or indirectly controlling, controlled by, or under common control with such Person, (b) any
Person owning or controlling fifty percent (50%) or more of the outstanding voting interests of such Person, (c) any officer, director, manager, or general partner of such Person, or (d) any Person who is an officer, director,
manager, general partner, trustee, or holder of fifty percent (50%) or more of the voting interests of any Person described in clauses (a) through (c) of this sentence. For purposes of this definition, the term
“control,” “controls,” “controlling,” “controlled by,” or “under common control with” means the possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities, by contract or otherwise. No Member or Manager shall be deemed to be an Affiliate of another Member or Manager due solely to such Person’s status as a Member or Manager
of the Company. 
 Agreement. This Limited Liability Company Agreement as originally executed and as amended from time to time.

 Approve or Approval. With respect to Members, the Members’ approval expressed at a meeting of the Members or expressed
by written consent as provided for in Article 7 of this Agreement. 
 Bankruptcy. With respect to a Person, the occurrence
of any of the following events: (a) such Person makes an assignment for the benefit of creditors; (b) such Person files a voluntary petition in bankruptcy; (c) such Person is adjudged a bankrupt or insolvent, or has entered against it
an order for relief, in any bankruptcy or insolvency proceeding; (d) such Person files a petition or answer seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any
statute, law or regulation; (e) such Person files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against it in any proceeding of this nature; (f) such Person seeks, consents to, or
acquiesces in the appointment of a trustee, receiver, or liquidator of such Person or of all or any substantial part of its properties; or (g) one hundred twenty (120) days after the commencement of any proceeding against such Person
seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation, if the proceeding has not been dismissed, or if within ninety (90) days after the appointment
without its consent or acquiescence of a trustee, receiver, or liquidator of such Person or of all or any substantial part of its properties, the appointment is not vacated or stayed, or within ninety (90) days after the expiration of any such
stay, the appointment is not vacated. 
  

 i 

 Capital Account. As of any given date, the capital account of each Equity Owner as
described in Section 8.4 and maintained to such date in accordance with this Agreement. 
 Capital Contribution. Any
contribution to the capital of the Company in cash or property by an Equity Owner whenever made. 
 Certificate of
Formation. The certificate of formation of the Company as filed with the Secretary of State as the same may be amended from time to time. 
 Code. The Internal Revenue Code of 1986, as amended from time to time. 
 Company. RW Gathering, LLC. 
 Company Property. All assets (real or personal, tangible or
intangible, including cash) of the Company. 
 CPI Index. The Consumer Price Index for All Items All Urban Consumers (DPI-U)
(1982-84 = 100) for the United States, as published by the United States Department of Labor’s Bureau of Labor Statistics. 
 Deficit Capital Account. With respect to any Equity Owner, the deficit balance, if any, in such Equity Owner’s Capital Account as of the end of the Fiscal Year, after giving effect to the following adjustments:

 (a) Credit to such Capital Account the amount, if any, which such Equity Owner is obligated to restore under
Section 1.704-1(b)(2)(ii)(c) of the Regulations, as well as any addition thereto pursuant to the next to last sentence of Sections 1.704-2(g)(1) and (i)(5) of the Regulations, after taking into account thereunder any changes during such
year in partnership minimum gain as determined in accordance with Section 1.704-2(d) of the Regulations and in any partner nonrecourse debt minimum gain as determined under Section 1.704-2(i)(3) of the Regulations; and 
 (b) Debit to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6) of the Regulations. 
 This definition of Deficit Capital Account is intended to comply with the provisions of Sections 1.704-1(b)(2)(ii)(d) and 1.704-2 of the Regulations, and shall be
interpreted consistently with those provisions. 
 Depreciation. For each Fiscal Year, an amount equal to the depreciation,
amortization, or other cost recovery deduction allowable with respect to an asset for such Fiscal Year, except that if the Gross Asset Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such Fiscal
Year, Depreciation shall be an amount which bears the same ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year bears to such beginning adjusted tax
basis; provided, 

  

 ii 

 
however, that if the adjusted basis for federal income tax purposes of an asset at the beginning of such Fiscal Year is zero, Depreciation shall be
determined with reference to such beginning Gross Asset Value using any reasonable method selected by the Manager. Notwithstanding the foregoing, if the Company uses the remedial method pursuant to Section 1.704-3(d) of the Regulations with
respect to one or more of the Company’s assets, Depreciation with respect to such assets shall not be determined in accordance with the preceding sentence of this definition, but shall instead be determined in a manner consistent with tax
capital accounting principles and consistent with the treatment of such assets under the remedial method. 
 Dispute. As
defined in Section 14.1. 
 Dispute Party. As defined in Section 14.1. 
 Distributable Cash. All cash, whether revenues or other funds received by the Company, less the sum of the following to the extent paid or
set aside by the Company: (a) all principal and interest payments on indebtedness of the Company and all other sums paid to lenders (including any Equity Owner that has made a loan to the Company); (b) all cash expenditures incurred
incident to the normal operation of the Company’s business; and (c) Reserves. Any funds released from a Reserve shall be considered a cash receipt by the Company for purposes of this definition. 
 Distribution. Any Transfer of Company Property from the Company to or for the benefit of an Equity Owner by reason of such Equity
Owner’s ownership of an Economic Interest. 
 Economic Interest. An Equity Owner’s share of one or more of the
Profits, Losses, and Distributions pursuant to this Agreement and the Act, but not including any right to participate in the management or affairs of the Company, such as the right to Approve or otherwise participate in any decision of the Members
or Manager. 
 Economic Interest Owner. The owner of an Economic Interest who is not a Member. 
 Effective Date. June 18, 2009. 
 Emergency. A sudden occurrence of event determined by the Manager to require immediate response or action to avoid or minimize loss of life, limb or property. 
 Entity. Any general partnership (including a limited liability partnership), limited partnership (including a limited liability limited
partnership), limited liability company, corporation, joint venture, trust, business trust, cooperative, association, foreign trust, or foreign business organization. 
 Equity Owner. An Economic Interest Owner or a Member. 
 Fiscal Year. The taxable
year of the Company as determined under the Code. 
  

 iii 

 Gift. A gift, devise, bequest, or other transfer for no consideration, whether or not by
operation of law, except in the case of Bankruptcy. 
 Gifting Equity Owner. Any Equity Owner who Gifts all or any part of its
Ownership Interest. 
 Gross Asset Value. With respect to any asset, the asset’s adjusted basis for federal income tax
purposes, except as follows: 
 (a) The initial Gross Asset Value of any asset contributed by an Equity Owner to the Company shall be the
gross fair market value of such asset on the date of contribution, as determined by all of the Members, provided that the initial Gross Asset Values of the assets contributed to the Company pursuant to Section 8.1 hereof shall be as set forth
in Exhibit 4.1; 
 (b) The Gross Asset Values of all Company assets shall be adjusted to equal their respective gross fair market
values (taking into account Section 7701(g) of the Code), as determined by the Manager as of the following times: (i) the acquisition of an interest by any new Equity Owner or an additional interest by an existing Equity Owner in exchange
for more than a de minimis contribution of property (including money); (ii) the Distribution by the Company to an Equity Owner of more than a de minimis amount of property as consideration for an Ownership Interest;
(iii) the liquidation of the Company within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Regulations; and (iv) the grant of an Ownership Interest in the Company (other than a de minimis interest) as consideration for
the provision of services to or for the benefit of the Company by an existing Equity Owner acting in the capacity of an Equity Owner or by a new Equity Owner acting in the capacity of an Equity Owner or in anticipation of being an Equity Owner;
provided, however, that adjustments pursuant to clauses (i) and (ii) above shall be made only if the Manager determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Equity Owners
in the Company; 
 (c) The Gross Asset Value of any Company asset Distributed to any Equity Owner shall be adjusted to equal the gross fair
market value of such asset on the date of Distribution as determined by the all of the Members; and 
 (d) The Gross Asset Values of Company
assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Section 734(b) or Section 743(b) of the Code, but only to the extent that such adjustments are taken into account in
determining Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations and Section 9.2(e) and subparagraph (g) under the definition of Profits and Losses; provided, however, that Gross Asset Values shall not be
adjusted pursuant to this subparagraph (d) of this definition to the extent that the Manager determines that an adjustment pursuant to subparagraph (b) of this definition is necessary or appropriate in connection with a transaction that
would otherwise result in an adjustment pursuant to this subparagraph (d). 
  

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 If the Gross Asset Value of an asset has been determined or adjusted pursuant to subparagraph (a), (b), or
(d) of this definition, then such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits and Losses. 
 Hypothecation. A lien, pledge, hypothecation, mortgage, grant of a security interest, or effecting an encumbrance either as security for
repayment of a liability or for any other purpose. 
 Initial Capital Contribution. The initial contribution to the capital of
the Company pursuant to this Agreement. 
 Issuance Items. Any income, gain, loss or deduction realized by the Company as a
direct or indirect result of the issuance of an interest in the Company by the Company to an Equity Owner, which (for the avoidance of doubt) shall not include any gain or loss described in clause (d) of the definition of “Profits”
and “Losses.” 
 Manager. As defined in Section 5.2. 
 Member. Each of the parties who executes a counterpart of this Agreement as a Member (an “Initial Member”) and each Person
who may hereafter become a Member. If a Person is a Member immediately prior to the purchase or other acquisition by such Person of an Economic Interest, such Person shall have all of the rights of a Member with respect to such purchased or
otherwise acquired Economic Interest, as the case may be. 
 Membership Interest. A Member’s entire interest in the
Company, including such Member’s Economic Interest and such other rights and privileges that the Member may enjoy by being a Member. 
 Ownership Interest. In the case of a Member, the Member’s Membership Interest; and in the case of an Economic Interest Owner, the Economic Interest Owner’s Economic Interest. 
 PEA. That certain Participation and Exploration Agreement made and entered into effective as of May 5, 2009 by and between Williams,
Williams Production Appalachia, LLC, Rex, Rex Energy I, LLC, Rex Energy Corporation, and Rex Energy Operating Corp. 
 Person.
Any individual or Entity, and the heirs, executors, administrators, legal representatives, successors, and assigns of such “Person” where the context so permits. 
 Prime Rate. The prime commercial lending rate in effect from time to time at the principal bank used by the Company for banking and
borrowing purposes. 
  

 v 

 Profits and Losses. For each Fiscal Year of the Company an amount equal to the
Company’s net taxable income or loss for such year as determined for federal income tax purposes (including separately stated items) in accordance with the accounting method and rules used by the Company and in accordance with Section 703
of the Code with the following adjustments: 
 (a) Any items of income, gain, loss and deduction allocated to Equity Owners pursuant to
Sections 9.2, 9.3, or 9.11 shall not be taken into account in computing Profits or Losses; 
 (b) Any income of the Company that is
exempt from federal income tax and not otherwise taken into account in computing Profits and Losses (pursuant to this definition) shall be added to such taxable income or loss; 
 (c) Any expenditure of the Company described in Section 705(a)(2)(B) of the Code or treated as such in Section 1.704-1(b)(2)(iv)(i) of
the Regulations and not otherwise taken into account in computing Profits and Losses (pursuant to this definition) shall be subtracted from such taxable income or loss; 
 (d) In the event the Gross Asset Value of any Company asset is adjusted pursuant to subparagraphs (b) or (c) of the definition of Gross Asset Value, the amount of such adjustment shall be taken into account
as gain or loss from the disposition of such asset for purposes of computing Profits and Losses; 
 (e) Gain or loss resulting from any
disposition of any Company asset with respect to which gain or loss is recognized for federal income tax purposes shall be computed with reference to the Gross Asset Value of the asset disposed of, notwithstanding that the adjusted tax basis of such
asset differs from its Gross Asset Value; 
 (f) In lieu of the depreciation, amortization, and other cost recovery deductions taken into
account in computing such taxable income or loss, there shall be taken into account Depreciation for such Fiscal Year; and 
 (g) To the
extent an adjustment to the adjusted tax basis of any asset pursuant to Section 734(b) or Section 743(b) of the Code is required pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations in determining Capital Accounts, the
amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of the asset and shall be taken into account for
purposes of computing Profits or Losses. 
 Regulations. The proposed, temporary, and final regulations promulgated under the
Code in effect as of the date of filing the Certificate of Formation and the corresponding sections of any regulations subsequently issued that amend or supersede such regulations. 
  

 vi 

 Regulatory Allocations. The allocations made pursuant to Sections 9.2(a), 9.2(b),
9.2(c), 9.2(d) and 9.2(e). 
 Reorganization. The merger or conversion of the Company, the sale or other disposition of all or
substantially all of the assets of the Company, the sale or other disposition of all or substantially all of the Ownership Interests, or any other transaction pursuant to which one or more Persons acquire all or substantially all of the assets of,
or Ownership Interests in, the Company in a single or series of related transactions, including a merger or conversion of the Company into a corporation or other Entity, whether or not such corporation or other Entity has the same owners as the
Company and whether or not additional capital is contributed to such corporation or other Entity; provided, however, that a Reorganization in no event shall include the merger or conversion of the Company into a general partnership which is not a
limited liability partnership. 
 Reserves. With respect to any fiscal period, funds set aside or amounts allocated during such
period to reserves which shall be maintained in amounts deemed sufficient by the Manager for working capital and for payment of taxes, insurance, debt service, or other costs or expenses incident to the ownership or operation of the Company’s
business. 
 Rex. R.E. Gas Development, LLC, a Delaware limited liability company. 
 Sale or Sell. A sale, assignment, exchange, Hypothecation, assignment by reason of Bankruptcy, or other transfer for consideration.

 Secretary of State. The Secretary of State of Delaware. 
 Securities Laws. Any Federal securities acts and laws as well as the securities acts and laws of any state, including the Securities Act of
1933, as amended. 
 Selling Equity Owner. Any Equity Owner that Sells all or any portion of its Ownership Interest.

 Semi-Annual Capital Budget. The capital budget for the Company for each six month period in a Fiscal Year to acquire, add
to, improve, replace or construct any capital asset of the Company if such acquisition, addition, improvement, replacement or construction is made to increase the long-term operating capacity, asset base, revenues or cash flow from operations of the
Company existing immediately prior to such acquisition, addition, improvement, replacement or construction (and shall not include costs that are includible in the Semi-Annual O&M Budget). 
 Semi-Annual O&M Budget. The operating and maintenance budget for the Company for each six month period in a Fiscal Year, which shall
include the expenses (whether capital in nature or not) of operating the Company (including all fees and assessments properly levied or imposed by any governmental authority, cost of insurance, and accounting and legal expenses) and of operating and
maintaining the assets of the Company (including any needed materials, equipment and supplies, sales, 

  

 vii 

 
use, and like taxes, contracted or subcontracted services, environmental assessments, costs of maintaining the Company’s permits, license and bonds and
costs of new assets that the Company is required by law to acquire or construct). 
 Semi-Annual Plan. As defined in
Section 5.12. 
 Sharing Ratio. The percentages in which the Equity Owners share those items making specific references to
“Sharing Ratios” in this Agreement. The initial Sharing Ratio shall be: 
  

				
	 Equity Owners
	  	Sharing
Ratio	 
	 Rex
	  	50	% 
	 Williams
	  	50	% 

 TMP. As defined in Section 9.10. 
 Transfer. Any Sale or Gift. 
 Transferring Equity Owner. Selling Equity Owner or a Gifting Equity Owner. 
 Unrecovered Losses. As
defined in Section 9.1(b)(i). 
 U.S. Government Controls. The International Emergency Economic Powers Act, the United and
Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), and the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001, all as amended, and all
applicable orders, rules and regulations. 
 Williams. Williams Production Company, LLC, a Delaware limited liability company.

  

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