Document:

Form of Transfer Agency and Service Agreement

  
 Exhibit 10.4

 

 

 TRANSFER AGENCY AND SERVICE AGREEMENT 

AGREEMENT made as of the      day of
            , 2010, by and between each Trust (each, individually, a “Trust” and collectively, the “Trusts”) listed on Appendix I hereto (as such Appendix
be amended from time to time), and THE BANK OF NEW YORK MELLON, a New York banking company having its principal office and place of business at One Wall Street, New York, New York 10286 (the “Bank”). 

WHEREAS, each Trust is an exchange traded fund; and 
 WHEREAS, each Trust will issue for purchase and redeem units of beneficial interest of each Trust (the “Shares”) only in aggregations of shares known as “Creation Units” (each a
“Creation Unit”); 
 WHEREAS, The Depository Trust Company, a limited purpose trust company organized under the laws
of the State of New York (“DTC”), or its nominee (Cede & Co.), will be the registered owner (the “Shareholder”) of all Shares; and 
 WHEREAS, each Trust desires to appoint the Bank as transfer agent, distribution disbursing agent, and agent in connection with certain other activities, and the Bank desires to accept such appointment;

 NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows: 

1. Terms of Appointment; Duties of the Bank 
 1.1 Subject to the terms and conditions set forth in this Agreement, each Trust hereby employs and appoints the Bank to act as, and the Bank agrees to act as, its respective transfer agent for the
authorized and issued Shares and as each Trust’s distribution disbursing agent. 
 1.2 The Bank agrees that it will perform
the following services: 
 (a) In accordance with the terms and conditions of the form of Participant Agreement of each Trust, a
copy of which is attached hereto as Exhibit A, the Bank shall: 
 (i) Perform and facilitate the performance of
purchases and redemption of Creation Units for each Trust; 
 (ii) Prepare and transmit by means of DTC’s book-entry
system payments for distributions on or with respect to the Shares declared by the applicable Trust; 
 (iii) Maintain separate
and distinct records for each Trust with respect to the name and address of the Shareholders and the number of Shares issued by each Trust and held by Shareholders; 
 (iv) With respect to each Trust, record, separately and distinctly, the issuance of Shares of each Trust and maintain separate and distinct records of the total number of Shares of each Trust which have
been issued since inception and the number of Shares which are outstanding based upon data provided to it by each Trust. The Bank shall have no obligation, when recording the issuance of Shares, to monitor the issuance of such Shares or to take
cognizance of any laws relating to the issue or sale of such Shares, which functions shall be the sole responsibility of the Trust; 

  
 (v) Prepare and
transmit to each Trust and each Trust’s administrator and to any applicable securities exchange (as specified to the Bank by the Trust or its administrator) information with respect to purchases and redemptions of Shares of each respective
Trust; 
 (vi) On days that a Trust may accept orders for purchases or redemptions, calculate and transmit to the Bank and such
Trust’s administrator the number of outstanding Shares; 
 (vii) On days that a Trust may accept orders for purchases or
redemptions (pursuant to the Participant Agreement), transmit to the Bank, the Trust and DTC the amount of Shares purchased redeemed on such day by such Trust; 
 (viii) Confirm to DTC the number of Shares issued to Shareholders of each respective Trust, as DTC may reasonably request; 
 (ix) Prepare and deliver other reports, information and documents to DTC as DTC may reasonably request; 
 (x) Extend the voting rights to the Shareholder for extension by DTC to DTC participants and the beneficial owners of Shares in accordance with the policies and procedures of DTC for book-entry only
securities; 
 (xi) Maintain separate and distinct books and records of each Trust as specified by each Trust in Schedule
A attached hereto; 
 (xii) With respect to each Trust, prepare a monthly report of all purchases and redemptions of Shares
during such month on a gross transaction basis, and identify on a daily basis the net number of Shares either redeemed or purchased on such Business Day and with respect to each Authorized Participant purchasing or redeeming Shares, the amount
of Shares purchased or redeemed; 
 (xiii) Receive from the Managing Owner purchase orders from Authorized Participants (as
defined in the Participant Agreement) for Creation Unit Aggregations of Shares received in good form and accepted by or on behalf of the Trust by the Distributor, transmit appropriate trade instructions to the National Securities Clearance
Corporation, if applicable, and pursuant to such orders issue the appropriate number of Shares of the Trust and hold such Shares in the account of the Shareholder for each of the respective Trusts; 

(xiv) Receive from the Authorized Participants redemption requests, deliver the appropriate documentation thereof to The Bank of New
York Mellon as custodian for the Trust, generate and transmit or cause to be generated and transmitted confirmation of receipt of such redemption requests to the Authorized Participants submitting the same; transmit appropriate trade instructions to
the National Securities Clearance Corporation, if applicable, and redeem the appropriate number of Creation Unit Aggregations of Shares held in the account of the Shareholder; and 

(xv) Confirm the name, U.S taxpayer identification number and principle place of business of each Authorized Participant. 

(b) In addition to the services set forth in the above sub-section 1.2(a), the Bank shall: perform the customary services of a transfer
agent and distribution disbursing agent including, but not limited to, maintaining the account of the Shareholder with respect to each Trust, obtaining at the request of the Trust from the Shareholder a list of DTC participants holding interests in
each Trust’s Global Certificate, and those services set forth on Schedule A attached hereto. 

  
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 (c) The following
shall be delivered to DTC participants as identified by DTC as the Shareholder for book-entry only securities: 
 (i) Annual
reports of each Trust; 
 (ii) Trust proxies, proxy statements and other proxy soliciting materials; 

(iii) Trust prospectus and amendments and supplements thereto, including stickers; and 

(iv) Other communications as a Trust may from time to time identify as required by law or as a Trust may reasonably request; and

 (v) The Bank shall provide additional services, if any, as may be agreed upon in writing by the Trust and the Bank.

 (d) The Bank shall keep records relating to the services to be performed hereunder, in the form and manner required by
applicable laws, rules, and regulations (the “Rules”), all such books and records shall be the property of each respective Trust, will be preserved, maintained and made available in accordance with such Section and Rules, and will be
surrendered promptly to the Trust on and in accordance with its request. 
 2. Fees and Expenses 

2.1 The Bank shall receive from the Trusts such compensation for the Transfer Agent’s services provided pursuant to this Agreement
as may be agreed to from time to time in a written fee schedule approved by the parties. The fees are accrued daily and billed monthly and shall be due and payable upon receipt of the invoice. Upon the termination of this Agreement before the end of
any month, the fee for the part of the month before such termination shall be prorated according to the proportion which such part bears to the full monthly period and shall be payable upon the date of termination of this Agreement. 

2.2 In addition to the fee paid under Section 2.1 above, each Trust agrees to reimburse the Bank for reasonable out-of-pocket
expenses, including but not limited to confirmation production, postage, forms, telephone, microfilm, microfiche, tabulating proxies, records storage, or advances incurred by the Bank for the items set out in the written fee schedule attached hereto
or relating to distributions and reports (whereas all expenses related to creations and redemptions of each respective Trust’s securities shall be borne by the relevant authorized participant in such creations and redemptions). In addition, any
other expenses incurred by the Bank at the request or with the consent of a Trust, will be reimbursed by the applicable Trust. 

2.3 The Trust agrees to pay all fees and reimbursable expenses within ten (10) business days following the receipt of the respective
billing notice accompanied by supporting documentation, as appropriate. Postage for mailing of distributions, proxies, Trust reports and other mailings to all shareholder accounts shall be advanced to the Bank by the Trust at least seven
(7) days prior to the mailing date of such materials. 
 3. Representations and Warranties of the Bank 

The Bank represents and warrants to each Trust that: 
 It is a banking company duly organized and existing and in good standing under the laws of the State of New York. 

  
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 It is duly qualified
to carry on its business in the State of New York. 
 It is empowered under applicable laws and by its Charter and By-Laws to
act as transfer agent and dividend disbursing agent and to enter into, and perform its obligations under, this Agreement. 
 All
requisite corporate proceedings have been taken to authorize it to enter into and perform this Agreement. 
 It has and will
continue to have access to the necessary facilities, equipment and personnel to perform its duties and obligations under this Agreement. 
 4.
Representations and Warranties of the Trust 
 Each Trust, severally and not jointly, represents and warrants to the Bank
that: 
 It is a statutory trust duly organized and existing and in good standing under the laws of Delaware. 

It is empowered under applicable laws and by its Declaration of Trust and Trust Agreement to enter into and perform this Agreement.

 A registration statement under the Securities Act of 1933, as amended, on behalf of each of the Trusts has become effective,
will remain effective, and appropriate state securities law filings have been made and will continue to be made, with respect to all Shares of the Trust being offered for sale. 
 5. Indemnification 
 5.1 The Bank shall not be responsible for, and the
applicable Trust shall indemnify and hold the Bank harmless from and against, any and all losses, damages, costs, charges, counsel fees, including, without limitation, those incurred by the Bank in a successful defense of any claims by a Trust,
payments, expenses and liability (“Losses”) which may sustain or incur or which may be asserted against the Bank in connection with or relating to this Agreement or the Bank’s actions or omissions with respect to this Agreement,
except for any Losses for which the Bank has accepted liability pursuant to Article 6 of this Agreement. 
 5.2 This
indemnification provision shall apply to actions taken pursuant to this Agreement or the Participant Agreement. 
 6. Standard of Care and
Limitation of Liability 
 The Bank shall have no responsibility and shall not be liable for any Losses, except that the
Bank shall be liable to the Trust for direct money damages caused by its own negligence or willful misconduct or that of its employees or agents, or its breach of any of its representations. In no event shall the Bank be liable for special, indirect
or consequential damages, regardless of the form of action and even if the same were foreseeable. For purposes of this Agreement, none of the following shall be or be deemed negligence or willful misconduct: 

(a) The conclusive reliance on or use by the Bank or its agents or subcontractors of information, records, documents or services which
(i) are received by the Bank or its agents or subcontractors, and (ii) have been prepared, maintained or performed by the Trust or any other person or firm on behalf of the Trust including but not limited to any previous transfer agent
or registrar. 

  
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 (b) The conclusive
reliance on, or the carrying out by the Bank or its agents or subcontractors of, any instructions or requests of the Trust or instructions or requests on behalf of the Trust. 

(c) The offer or sale of Shares by or for the Trust in violation of any requirement under the federal securities laws or regulations, or
the securities laws or regulations of any state that such Shares be registered in such state, or any violation of any stop order or other determination or ruling by any federal agency, or by any state with respect to the offer or sale of Shares in
such state. 
 7. Concerning the Bank 
 7.1 
 (a) The Bank may employ agents or attorneys-in-fact which are not affiliates
of the Bank with the prior written consent of the Trust (which consent shall not be unreasonably withheld), and shall not be liable for any loss or expense arising out of, or in connection with, the actions or omissions to act of such agents or
attorneys-in-fact, provided that the Bank acts in good faith and with reasonable care in the selection and retention of such agents or attorneys-in-fact. 
 (b) The Bank may with the prior written consent of the Trust (which consent shall not be unreasonably withheld), enter into subcontracts, agreements and understandings with any Bank affiliate, whenever
and on such terms and conditions as it deems necessary or appropriate to perform its services hereunder. No such subcontract, agreement or understanding shall discharge Bank from its obligations hereunder. 

7.2 The Bank shall be entitled to conclusively rely upon any written or oral instruction actually received by the Bank and reasonably
believed by the Bank to be duly authorized and delivered. Each Trust agrees to forward to the Bank written instructions confirming oral instructions by the close of business on the same day that such oral instructions are given to the Bank. Each
Trust agrees that the fact that such confirming written instructions are not received or that contrary written instructions are received by the Bank shall in no way affect the validity or enforceability of transactions authorized by such oral
instructions and effected by the Bank. If a Trust elects to transmit written instructions through an on-line communication system offered by the Bank, such Trust’s use thereof shall be subject to the terms and conditions attached hereto as
Appendix A. 
 7.3 The Bank shall establish and maintain a disaster recovery plan and back-up system at all times
satisfying the requirements of its regulators (the “Disaster Recovery Plan and Back-Up System”). The Bank shall not be responsible or liable for any failure or delay in the performance of its obligations under this Agreement arising out of
or caused, directly or indirectly, by circumstances beyond its control which are not a result of its negligence, including without limitation, acts of God; earthquakes; fires; floods; wars; civil or military disturbances; sabotage; epidemics; riots;
interruption, loss or malfunctions of utilities, transportation, computer (hardware or software) or communication services; labor disputes; acts of civil or military authority; governmental actions; or inability to obtain labor, material, equipment
or transportation, provided that the Bank has established and is maintaining the Disaster Recovery Plan and Back-Up System, or if not, that such delay or failure would have occurred even if the Bank had established and was maintaining the Disaster
Recovery Plan and Back-Up System. Upon the occurrence of any such delay or failure the Bank shall use commercially reasonable best efforts to resume performance as soon as practicable under the circumstances. 

  
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 7.4 The Bank shall
have no duties or responsibilities whatsoever except such duties and responsibilities as are specifically set forth in this Agreement and the Participation Agreement, and no covenant or obligation shall be implied against the Bank in connection with
this Agreement, except as set forth in this Agreement and the Participation Agreement. 
 7.5 At any time the Bank may apply to
an officer of the Trust for written instructions with respect to any matter arising in connection with the Bank’s duties and obligations under this Agreement, and the Bank, its agents, and subcontractors shall not be liable for any action taken
or omitted to be taken in good faith in accordance with such instructions. Such application by the Bank for instructions from an officer of the Trust may, at the option of the Bank, set forth in writing any action proposed to be taken or omitted to
be taken by the Bank with respect to its duties or obligations under this Agreement and the date on and/or after which such action shall be taken, and the Bank shall not be liable for any action taken or omitted to be taken in accordance with a
proposal included in any such application on or after the date specified therein unless, prior to taking or omitting to take any such action, the Bank has received written instructions in response to such application specifying the action to be
taken or omitted. 
 7.6 The Bank, its agents and subcontractors may act upon any paper or document, reasonably believed to be
genuine and to have been signed by the proper person or persons, or upon any instruction, information, data, records or documents provided to the Bank or its agents or subcontractors by or on behalf of the Trust by machine readable input, telex, CRT
data entry or other similar means authorized by the Trust, and shall not be held to have notice of any change of authority of any person, until receipt of written notice thereof from the Trust. 

7.7 Notwithstanding any provisions of this Agreement to the contrary, the Bank shall be under no duty or obligation to inquire into, and
shall not be liable for: 
 (a) The legality of the issue, sale or transfer of any Shares, the sufficiency of the amount to be
received in connection therewith, or the authority of each Trust to request such issuance, sale or transfer; 
 (b) The legality
of the purchase of any Shares, the sufficiency of the amount to be paid in connection therewith, or the authority of each Trust to request such purchase; 
 (c) The legality of the declaration of any distribution by a Trust, or the legality of the issue of any Shares in payment of any stock dividend; or 

(d) The legality of any recapitalization or readjustment of the Shares of any Trust. 

8. Providing of Documents by each Trust and Transfers of Shares 
 8.1 Each Trust shall promptly furnish to the Bank with a copy of its Declaration of Trust and all amendments thereto. 
 8.2 With respect to each Trust, in the event that DTC ceases to be the Shareholder, the Bank shall re-register the Shares in the name of the successor to DTC as Shareholder upon receipt by the Bank of
such documentation and assurances as it may reasonably require. 

  
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 8.3 The Bank shall
have no responsibility whatsoever with respect to of any beneficial interest in any of the Shares of any Trust owned by the Shareholder. 
 8.4 Each Trust shall deliver to the Bank the following documents on or before the effective date of any increase, decrease or other change in the total number of Shares authorized to be issued:

 (a) A certified copy of the amendment to the Trust’s Declaration of Trust with respect to such increase, decrease or
change; and 
 (b) An opinion of counsel for the Trust, in a form satisfactory to the Bank, with respect to (i) the
validity of the Shares, the obtaining of all necessary governmental consents, whether such Shares are fully paid and non-assessable and the status of such Shares under the Securities Act of 1933, as amended, and any other applicable federal law or
regulations (i.e., if subject to registration, that they have been registered and that the Registration Statement has become effective or, if exempt, the specific grounds therefore), and (ii) the due and proper listing of the Shares on all
applicable securities exchanges. 
 8.5 Prior to the issuance of any additional Shares pursuant to stock dividends, stock splits
or otherwise, and prior to any reduction in the number of Shares outstanding, a Trust shall deliver to the Bank: 
 (a) A
certified copy of the order or consent of each governmental or regulatory authority required by law as a prerequisite to the issuance or reduction of such Shares, as the case may be, and an opinion of counsel for the Trust that no other order or
consent is required; and 
 (b) An opinion of counsel for the Trust, in a form satisfactory to the Bank, with respect to
(i) the validity of the Shares, the obtaining of all necessary governmental consents, whether such Shares are fully paid and non-assessable and the status of such Shares under the Securities Act of 1933, as amended, and any other applicable
federal law or regulations (i.e., if subject to registration, that they have been registered and that the Registration Statement has become effective or, if exempt, the specific grounds therefore), and (ii) the due and proper listing of
the Shares on all applicable securities exchanges. 
 8.6 The Bank agrees that all records prepared or maintained by the Bank
relating to the services to be performed by the Bank hereunder are the property of the applicable Trust, and will be preserved, maintained and made available upon reasonable request, and will be surrendered promptly to the applicable Trust on and in
accordance with its request. The Bank further agrees that all records prepared or maintained by the Bank for each Trust relating to the services to be performed by the Bank hereunder will be maintained in separate and distinct files created for each
Trust. 
 8.7 The Bank and the Trust agree that all books, records, confidential, non-public, or proprietary information and
data pertaining to the business of the other party which are exchanged or received pursuant to the negotiation or the carrying out of this Agreement shall remain confidential, and shall not be voluntarily disclosed to any person other than its
auditors, accountants, regulators, employees or counsel, except as may be, or may become required by law, by administrative or judicial order or by rule. 
 8.8 In case of any requests or demands for the inspection of the Shareholder records of a Trust, the Bank will promptly employ reasonable commercial efforts to notify the applicable Trust and secure
instructions from an authorized officer of such Trust as to such inspection. The Bank reserves the right, however, to exhibit the Shareholder records to any person whenever it is advised by its counsel that it may be held liable for the failure to
exhibit the Shareholder records to such person. 

  
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 9. Termination of Agreement

 9.1 The term of this Agreement shall be one year commencing upon the date hereof (the “Initial Term”) and shall
automatically renew for additional one-year terms (each a “Subsequent Term”) unless either party provides written notice of termination at least ninety (90) days prior to the end of any one year term or, unless earlier terminated as
provided below: 
 (a) Either party hereto may terminate this Agreement prior to the expiration of the Initial Term in the event
the other party breaches any material provision of this Agreement, including, without limitation in the case of the Trust, its obligations under Section 2.1, provided that the non-breaching party gives written notice of such breach to the
breaching party and the breaching party does not cure such violation within ninety (90) days of receipt of such notice. 

(b) The Trust may terminate this Agreement at any time upon ninety (90) days’ prior written notice. 

(c) Termination of this Agreement by a Trust shall not affect this Agreement with respect to any other Trust. 

9.2 Should a Trust exercise its right to terminate, all out-of-pocket expenses associated with the movement of records and material will
be borne by such Trust. 
 9.3 The terms of Article 2 (with respect to fees and expenses incurred prior to termination), and of
Article 5 shall survive any termination of this Agreement. 
 10. [Reserved] 

11. Assignment 
 11.1
Neither this Agreement nor any rights or obligations hereunder may be assigned by either party without the written consent of the other party. 
 11.2 This Agreement shall inure to the benefit of and be binding upon the parties and their respective permitted successors and assigns. 
 12. Severability and Beneficiaries 
 12.1 In case any provision in or
obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, the legality and enforceability of the remaining provisions shall not in any way be affected thereby provided obligation of the Trust to
pay is conditioned upon provision of services. 
 12.2 This Agreement is solely for the benefit of the Bank and each Trust, and
none of any Participant (as defined in the Participation Agreement), any Shareholder or beneficial owner of any Shares shall be or be deemed a third party beneficiary of this Agreement. 
 13. Amendment 
 This Agreement may be amended or modified by a written
agreement executed by both parties. 

  
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 14. New York Law to Apply

 This Agreement shall be construed in accordance with the substantive laws of the State of New York, without regard to
conflicts of laws principles thereof. Each Trust and the Bank hereby consent to the jurisdiction of a state or federal court situated in New York City, New York in connection with any dispute arising hereunder. Each Trust hereby irrevocably waives,
to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to the laying of venue of any such proceeding brought in such a court and any claim that such proceeding brought in such a court has been brought in
an inconvenient forum. Each Trust and the Bank each hereby irrevocably waive any and all rights to trial by jury in any legal proceeding arising out of or relating to this Agreement. 
 15. Merger of Agreement 
 Except as expressly provided to the contrary from
time-to-time in the written fee schedule approved by the parties and attached hereto, this Agreement constitutes the entire agreement between the parties hereto and supersedes any prior agreement with respect to the subject matter hereof whether
oral or written. 
 16. Limitations of Liability of the Trustee and Shareholders 

16.1 Notwithstanding anything to the contrary provided herein, the Bank agrees that the liabilities of each Trust shall be limited such that the debts,
liabilities, obligations and expenses incurred, contracted for or otherwise existing and relating to this Agreement with respect to a particular Trust shall be enforceable against the assets of that particular Trust only, and not against the assets
of any other Trust and that they have executed one instrument for convenience only. 
 16.2 It is expressly acknowledged and agreed that the
obligations of each Trust hereunder shall not be binding upon any shareholder, Trustee, officer, employee or agent of such Trust, personally. This Agreement has been duly authorized, executed and delivered by each Trust and neither such
authorization nor such execution and delivery shall be deemed to have been made by any of them individually or to impose any liability on any of them personally. 
 17. Counterparts 
 This Agreement may be executed by the parties hereto in
any number of counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 

  
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 IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed in their names and on their behalf by and through their duly authorized officers, as of the day and year first above written. 

 

			
	BNP PARIBAS QUANTITATIVE STRATEGIES, LLC,
	Managing Owner of each Trust listed on Appendix I
		
	By:	 	  

		 	Name:
		 	Title:
	
	THE BANK OF NEW YORK MELLON
		
	By:	 	  

		 	Name:
		 	Title:

  
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 APPENDIX I

 Trust Names 
 BNP PARIBAS L/S COMMODITIES TRUST 

  
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 SCHEDULE A 

BOOKS AND RECORDS TO BE MAINTAINED BY THE BANK 
 The Bank shall maintain separate and distinct files for each Trust with respect to the following: 

Source Documents requesting Creations and Redemptions 
 Correspondence/AP Inquiries 
 Reconciliations, bank statements, copies of canceled checks, cash
proofs 
 Daily/Monthly reconciliation of outstanding Shares between the Trust and DTC 
 Distribution Records 
 Year-end Statements and Tax Forms 

Net Asset Computation Documentation 

  
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 Exhibit A

 Form of Authorized Participant Agreement 

  
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 APPENDIX A

 THE BANK OF NEW YORK MELLON 
 ON-LINE COMMUNICATIONS SYSTEM (THE “SYSTEM”) 
 TERMS AND
CONDITIONS 
 1. License; Use. (a) This Appendix A shall govern the Fund’s use of the System and any
computer software provided by BNY to the Fund in connection herewith (collectively, the “Software”). In the event of any conflict between the terms of this Appendix A and the main body of this Agreement with respect to the
Fund’s use of the System, the terms of this Appendix I shall control. 
 (b) Upon delivery to the Fund of Software and/or
System access codes, BNY grants to the Fund a personal, nontransferable and nonexclusive license to use the Software and the System solely for the purpose of transmitting Written Instructions, receiving reports, making inquiries or otherwise
communicating with BNY in connection with the Account(s). The Fund shall use the Software and the System solely for its own internal and proper business purposes and not in the operation of a service bureau. Except as set forth herein, no license or
right of any kind is granted to the Fund with respect to the Software or the System. The Fund acknowledges that BNY and its suppliers retain and have title and exclusive proprietary rights to the Software and the System, including any trade secrets
or other ideas, concepts, know-how, methodologies, or information incorporated therein and the exclusive rights to any copyrights, trademarks and patents (including registrations and applications for registration of either), or other statutory or
legal protections available in respect thereof. The Fund further acknowledges that all or a part of the Software or the System may be copyrighted or trademarked (or a registration or claim made therefor) by BNY or its suppliers. The Fund shall not
take any action with respect to the Software or the System inconsistent with the foregoing acknowledgments, nor shall the Fund attempt to decompile, reverse engineer or modify the Software. The Fund may not copy, sell, lease or provide, directly or
indirectly, any of the Software or any portion thereof to any other person or entity without BNY’s prior written consent. The Fund may not remove any statutory copyright notice or other notice included in the Software or on any media containing
the Software. The Fund shall reproduce any such notice on any reproduction of the Software and shall add any statutory copyright notice or other notice to the Software or media upon BNY’s request. 

(c) If the Fund subscribes to any database service provided by BNY in connection with its use of the System, delivery of such database to
the Fund shall constitute the granting by BNY to the Fund of a non-exclusive, non-transferable license to use such database for so long as this Appendix A is in effect. It is understood and agreed that any database supplied by BNY is derived from
sources which BNY believes to be reliable but BNY does not, and cannot for the fees charged, guarantee or warrant that the data is correct, complete or current. All such databases are provided as an accommodation by BNY to its customers and are
compiled without any independent investigation by BNY. However, BNY will endeavor to update and revise each database on a periodic basis as BNY, in its discretion, deems necessary and appropriate. The Fund also agrees that the Fund will promptly
install all updates and revisions to each database which BNY provides and that BNY cannot bear any responsibility whatsoever for the Fund’s failure to do so. BNY IS NOT RESPONSIBLE FOR ANY RESULTS OBTAINED BY THE FUND FROM USE OF DATABASE
SERVICES PROVIDED BY BNY. 
 2. Equipment. The Fund shall obtain and maintain at its own cost and expense all equipment
and services, including but not limited to communications services, necessary for it to utilize the Software and obtain access to the System, and BNY shall not be responsible for the reliability or availability of any such equipment or services.

  
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 3. Proprietary
Information. The Software, any data base and any proprietary data, processes, information and documentation made available to the Fund (other than which are or become part of the public domain or are legally required to be made available to the
public) (collectively, the “Information”), are the exclusive and confidential property of BNY or its suppliers. However, for the avoidance of doubt, reports generated by the Fund containing information relating to the Account(s) are not
deemed to be within the meaning of the term “Information”. During the term of this Agreement, the Fund shall keep the Information confidential by using the same care and discretion that the Fund uses with respect to its own confidential
property and trade secrets, but not less than reasonable care. Upon termination of the Agreement or the licenses granted herein for any reason, the Fund shall return to BNY any and all copies of the Information which are in its possession or under
its control. The provisions of this Section 3 shall not affect the copyright status of any of the Information which may be copyrighted and shall apply to all information whether or not copyrighted. 

4. Modifications. BNY reserves the right to modify the Software from time to time and the Fund shall install new releases of the
Software as BNY may direct. The Fund agrees not to modify or attempt to modify the Software without BNY’s prior written consent. The Fund acknowledges that any modifications to the Software, whether by the Fund or BNY and whether with or
without BNY’s consent, shall become the property of BNY. 
 5. NO REPRESENTATIONS OR WARRANTIES. BNY AND ITS
MANUFACTURERS AND SUPPLIERS MAKE NO WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE SOFTWARE, THE SYSTEM, ANY SERVICES OR ANY DATABASE, EXPRESS OR IMPLIED, IN FACT OR IN LAW, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY AND FITNESS
FOR A PARTICULAR PURPOSE. CUSTOMER ACKNOWLEDGES THAT THE SOFTWARE, THE SYSTEM, ANY SERVICES AND ANY DATABASE ARE PROVIDED “AS IS.” TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL BNY OR ANY SUPPLIER BE LIABLE FOR ANY
DAMAGES, WHETHER DIRECT, INDIRECT SPECIAL, OR CONSEQUENTIAL, WHICH THE FUND MAY INCUR IN CONNECTION WITH THE SOFTWARE, SERVICES OR ANY DATABASE, EVEN IF BNY OR SUCH SUPPLIER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES EXCEPT WHERE SUCH
DAMAGES RESULT FROM BNY OR ITS SUPPLIER’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. IN NO EVENT SHALL BNY OR ANY SUPPLIER BE LIABLE FOR ACTS OF GOD, MACHINE OR COMPUTER BREAKDOWN OR MALFUNCTION, INTERRUPTION OR MALFUNCTION OF COMMUNICATION
FACILITIES, LABOR DIFFICULTIES OR ANY OTHER SIMILAR OR DISSIMILAR CAUSE BEYOND THEIR REASONABLE CONTROL. 
 6. Security;
Reliance; Unauthorized Use. BNY will establish security procedures to be followed in connection with the System. The Fund understands and agrees that the security procedures are intended to determine whether instructions received by BNY through
the System are authorized but are not (unless otherwise specified in writing) intended to detect any errors contained in such instructions. The Fund will cause all persons utilizing the Software and the System to treat all applicable user and
authorization codes, passwords and authentication keys with the highest degree of care and confidentiality. BNY is hereby irrevocably authorized to comply with and rely upon on Written Instructions, whether or not authorized, received by it through
the System in accordance with the security procedures. The Fund acknowledges that it is its sole responsibility to assure that only Authorized Persons use the System and that to the fullest extent permitted by applicable law BNY shall not be
responsible nor liable for any unauthorized use thereof or for any losses sustained by the Fund arising from or in connection with the use of the System or BNY’s reliance upon and compliance with Written Instructions received through the System
except where such losses result from BNY’s gross negligence or willful misconduct. 

  
 15 

  
 7. System
Acknowledgments. BNY shall acknowledge through the System its receipt of each transmission communicated through the System, and in the absence of such acknowledgment BNY shall not be liable for any failure to act in accordance with such
transmission and the Fund may not claim that such transmission was received by BNY. 
 8. EXPORT RESTRICTIONS. EXPORT OF
THE SOFTWARE IS PROHIBITED BY UNITED STATES LAW. THE FUND MAY NOT UNDER ANY CIRCUMSTANCES RESELL, DIVERT, TRANSFER, TRANSSHIP OR OTHERWISE DISPOSE OF THE SOFTWARE (IN ANY FORM) IN OR TO ANY OTHER COUNTRY. IF BNY DELIVERED THE SOFTWARE TO CUSTOMER
OUTSIDE OF THE UNITED STATES, THE SOFTWARE WAS EXPORTED FROM THE UNITED STATES IN ACCORDANCE WITH THE EXPORT ADMINISTRATION REGULATIONS. DIVERSION CONTRARY TO U.S. LAW IS PROHIBITED. The Fund hereby authorizes BNY to report its name and address to
government agencies to which BNY is required to provide such information by law. 
 9. Encryption. The Fund acknowledges
and agrees that encryption may not be available for every communication through the System, or for all data. The Fund agrees that BNY may deactivate any encryption features at any time, without notice or liability to the Fund, for the purpose of
maintaining, repairing or troubleshooting the System or the Software. 
 10. On-Line Inquiry and Modification of Records.
In connection with the Fund’s use of the System, BNY may, at the Fund’s request, permit the Fund to enter data directly into a BNY database for the purpose of modifying certain information maintained by BNY’s systems, including, but
not limited to, change of address information. To the extent that the Fund is granted such access, the Fund agrees to indemnify and hold BNY harmless from all liability, cost, damage and expense (including attorney’s fees and expenses, but
excluding indirect, punitive, consequential or special damages) to which BNY may be subjected or which may be incurred in connection with any claim which may arise directly out of or as a direct result of changes to BNY database records initiated by
the Fund, except that the Fund shall not be liable for any amounts to the extent that any such liability, cost or expense arose as a result of BNY’s gross negligence or willful misconduct. 

  
 16 

  
 Fee Schedule

  
 17Employment Agreement - Daniel J. Churay

  
 Exhibit 10.1

 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (this “Agreement”) by and between Daniel J. Churay (the “Executive”), Rex Energy Corporation (“Rex
Energy”) and Rex Energy Operating Corp. (“Rex Operating”) is made and entered into this first day of November, 2010, to be effective as of December 1, 2010 (the “Effective Date”).

 W I T N E S S E T H: 

WHEREAS, Rex Energy and Rex Operating (collectively, the “Company”) wish to have the Executive serve as
President and Chief Executive Officer of Rex Energy and President and Chief Executive Officer of Rex Operating, and, in such capacity, to be employed as an employee of Rex Operating, and the Executive wishes to be employed in such capacity;

 NOW, THEREFORE, in consideration of the premises and the respective covenants and agreements of the parties herein
contained, and intending to be legally bound hereby, the parties hereto agree as follows: 
 1. Employment and Term.

 (a) The Company hereby agrees that Rex Operating shall employ the Executive, and the Executive hereby accepts such
employment, on the terms and conditions hereinafter set forth. The parties agree that the Executive’s employment may in the future be transferred to Rex Energy, so that the Executive may be employed by either Company under this Agreement. The
period of employment of the Executive under this Agreement (the “Employment Period”) shall commence on the Effective Date and shall end on the Executive’s Date of Termination (as defined in Section 7(b) hereof) or,
if earlier, the end of the Term. Upon expiration of this Agreement at the end of the Term, after taking into account all of the extensions thereof, the Executive shall be an at-will employee of the Company. 

(b) The term of this Agreement (the “Term”) shall begin on the Effective Date and shall end on November 30,
2013; provided, that, on November 30, 2013, and each anniversary of November 30, 2013 thereafter, the Term shall be extended for one (1) additional year unless either party shall have given the other party at least ninety
(90) days prior written notice not to extend the Term or the Executive shall have incurred a termination of employment with the Company as described herein. Notwithstanding the foregoing, if one or more Changes in Control of Rex Energy occur
during the Term, the Term of this Agreement shall be automatically extended until the second anniversary of the date on which the last Change in Control of Rex Energy occurred or until the Executive’s earlier termination of employment with the
Company as described herein. 
 (c) Failure of the Company to renew the Agreement at the end of the Term shall not by itself be
considered a termination of employment by the Company or a Good Reason event, except as specifically provided herein. Notwithstanding the foregoing, in the event that the Company fails to renew the Agreement at the end of the Term and the Company
terminates the Executive’s employment without Cause within ninety (90) days following the end of the Term, the Executive shall be entitled to the benefits in Section 8(e), subject to the terms of Section 8(e) and compliance with
the covenants in Section 9. 

  
 2. Position and
Duties. 
 (a) As of the Effective Date, the Executive shall serve as President and Chief Executive Officer of Rex Energy,
and also as the President and Chief Executive Officer of Rex Operating, in which capacities the Executive shall perform the usual and customary duties of such offices, which are normally inherent in such capacities in U.S. publicly held corporations
of similar size and character as the Company. The Executive shall report to the Board of Directors of Rex Energy (the “Board”). The Executive agrees and acknowledges that, in connection with his employment relationship with
the Company, the Executive owes fiduciary duties to the Company and, if applicable, its subsidiaries, and will act accordingly. The Executive shall remain a director of Rex Energy during the Employment Period. 

(b) During the Employment Period, the Executive agrees to devote substantially his full time, attention and energies to the
Company’s business and agrees to faithfully and diligently endeavor to the best of his ability to further the best interests of the Company and its shareholders. Subject to Section 9 herein, the Executive may only serve as a director of
other companies if such service is approved in advance by the Board (which approval of one such director position will not be unreasonably withheld), so long as such service is not detrimental to the Company, does not interfere with the
Executive’s service to the Company and does not present the Executive with a conflict of interest. The Executive may invest his own assets in such form or manner as will not require his services in the daily operations of the affairs of the
companies in which such investments are made, provided that no such investment violates the Executive’s obligations under Section 2(d) or 9 herein. 
 (c) In keeping with the Executive’s fiduciary duties to the Company, the Executive agrees that he shall not, directly or indirectly, become involved in any conflict of interest, or upon discovery
thereof, allow such a conflict to continue. Moreover, the Executive agrees that he shall promptly disclose to the Board any facts which might involve any reasonable possibility of a conflict of interest, or be perceived as such. 

(d) Circumstances in which a conflict of interest on the part of the Executive would or might arise, and which should be reported
immediately by the Executive to the Board, include the following: 
 (i) ownership of a material interest in,
acting in any capacity for, or accepting directly or indirectly any payments, services or loans from a supplier, contractor, subcontractor, customer or other entity with which the Company does business; 

(ii) misuse of information or facilities to which the Executive has access in a manner which will be detrimental to the
Company’s interest; 
 (iii) disclosure or other misuse of Confidential Information (as defined in
Section 9 hereof); 
 (iv) acquiring or trading in, directly or indirectly, other properties or interests
connected with the exploration and production of oil, or the design, manufacturing, marketing or provision of other products and services in which the 

  
 2 

 
Company is engaged from time to time, including leasing of oil and gas mineral interests in those fields in which the Company has an interest or prospective interest or opportunity; 

(v) the appropriation to the Executive or the diversion to others, directly or indirectly, of any opportunity in which it
is known or could reasonably be anticipated that the Company would be interested; and 
 (vi) the ownership,
directly or indirectly, of a material interest in an enterprise in competition with the Company or its dealers and distributors or acting as a director, officer, partner, consultant, employee or agent of any enterprise which is in competition with
the Company or its dealers or distributors. 
 Notwithstanding anything to the contrary in this Section 2, it shall not be a violation of
this Agreement for the Executive to become the registered or beneficial owner of up to five percent (5%) of any class of the capital stock of a corporation registered under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), provided that the Executive does not actively participate in the business of such corporation. 
 (e) Further, the Executive covenants, warrants and represents that he shall: 
 (i) devote his full and best efforts to the fulfillment of his employment obligations; and 
 (ii) abide by any compensation clawback, recoupment or anti-hedging policy applicable to executives of the Company or its affiliates, in effect from time to time, as approved by the Board or a duly
authorized committee thereof or as required by law. 
 (f) During the Employment Period, the Executive shall receive annual
performance and compensation reviews. 
 3. Place of Performance. In connection with the Executive’s employment by
the Company, the Executive’s principal business address shall be at the Company’s current principal executive offices in State College, Pennsylvania (the “Principal Place of Employment”). Executive hereby agrees to
perform a substantial amount of his duties at the Principal Place of Employment, and understands and agrees that he will be required to travel from time to time for business purposes. 

4. Compensation and Related Matters. 
 (a) Base Salary. During the Employment Period, the Company shall pay the Executive an annual base salary (“Base Salary”) in an amount that shall be established from time to
time by the Compensation Committee of the Board (the “Compensation Committee”), payable in approximately equal installments in accordance with the Company’s customary payroll practices, which is currently bi-weekly
payments. The Base Salary shall be set initially at four hundred and ten thousand dollars ($410,000). The Compensation Committee shall review the Executive’s Base Salary at least annually thereafter during the Employment Period. The

  
 3 

 
Executive’s Base Salary may be increased but (i) may not be materially reduced (as defined in Section 6(d)(iv) below) during any portion of the Employment Period preceding a Change
in Control and (ii) may not be reduced during any portion of the Employment Period following a Change in Control. 
 (b)
Bonuses. 
 (i) Sign-on Bonus. On the first day of employment, the Company shall pay Executive a
sign-on bonus of $136,000. 
 (ii) Annual Bonus. During the Employment Period, the Executive shall be
eligible to participate in the Annual Executive Incentive Plan, or any successor plan thereto (the “Annual Incentive Plan”). The bonus opportunity afforded the Executive under the Annual Incentive Plan may vary from year to
year and any bonus earned, if any, thereunder (the “Annual Bonus”) shall be paid at a time and in a manner consistent with the Company’s customary practices and in accordance with the terms of the Annual Incentive Plan.
The Executive’s target Annual Bonus percentage will be initially set at fifty-five percent (55%) of the Executive’s Base Salary, which shall be prorated for the 2010 fiscal year based on salary actually earned in 2010 after the
Effective Date; provided, however, that the 2010 Annual Bonus shall be no less than $12,000, payable in two equal installments on the first business day in November after the Effective Date and December 1, 2010. Notwithstanding the foregoing,
if the Company pays the Executive a director’s fee in November 2010, no portion of the 2010 guaranteed bonus will be paid in November 2010, and the 2010 guaranteed bonus amount shall be reduced to $6,000, payable on December 1, 2010. For
fiscal year 2011, the Executive shall be guaranteed an Annual Bonus at a minimum of $72,000, payable in equal installments on the first business day of each of month of 2011, which amounts shall be credited against any actual Annual Bonus payout for
fiscal year 2011. Except as otherwise provided for herein, the Executive’s bonus levels established under the Annual Incentive Plan, if any, will be contingent upon the Company achieving predetermined performance goals and approval by the
Compensation Committee. 
 (c) Equity-Based, Long-Term Cash and Performance-Based Compensation Awards. 

(i) Initial Grants. On the Effective Date, Executive shall receive the following grants determined as follows:

 (1) Rex Energy will grant to the Executive a number of stock options to purchase shares of Rex Energy common
stock (“Common Stock”) having an aggregate expense to the Company over the vesting period of the options of $282,444 on the date of grant determined using the Fair Market Value (as defined in Rex Energy’s 2007 Long-Term
Incentive Plan) and the accounting expense methodology that the Company has consistently used in the past in accordance with U.S. generally accepted accounting principles (the “Options”). The number of shares of Common Stock
subject to the Options will be determined by dividing $282,444 by the value of an option to purchase a share of 

  
 4 

 
Common Stock on the date of grant utilizing this past expense methodology. The Options will have an exercise price equal to the Fair Market Value of share of Common Stock on the date of grant,
will vest and become exercisable as to 50% on each of the first and second anniversaries of the date of grant and will have a term of five years. The Options will be granted by the Compensation Committee under and governed by the Rex Energy’s
2007 Long-Term Incentive Plan and, except as modified by this Section 4(c)(i)(1), shall be issued pursuant to an agreement in the form of the Nonqualified Stock Option Award Agreement filed as Exhibit 10.25 to Rex Energy’s Annual Report on
Form 10-K for the year ended December 31, 2007. 
 (2) Rex Energy will grant to Executive restricted shares
of Common Stock (“Restricted Shares”) at a total expense to the Company at BOE Target Goal and DSCF ps Target Goal (as those terms are defined in the Form of Award Agreement (as defined below)) of $564,889 over two years. The
number of Restricted Shares granted will be determined by multiplying $564,889 by two and dividing by the Fair Market Value of a share of Common Stock on the date of grant. The Restricted Shares will vest on December 31, 2012, subject to the
Company’s attainment of the applicable performance targets. Notwithstanding the foregoing vesting schedule, the Executive shall be eligible to receive 50% of the Restricted Shares that vest as of December 31, 2012, provided he remains
employed with the Company from the grant date through December 31, 2011 and 100% of the Restricted Shares that vest as of December 31, 2012, provided he remains employed with the Company from the grant date through December 31, 2012.
By March 15, 2013, the Compensation Committee shall certify as to whether and to what extent the applicable performance targets for the two year period ending December 31, 2012 have been satisfied. The Restricted Shares will be granted by
the Compensation Committee under and governed by the Rex Energy’s 2007 Long-Term Incentive Plan and, except as modified by this Section 4(c)(i)(2), shall be issued in an agreement in the form of the Restricted Stock Award Agreement filed
as Exhibit 10.1 to Rex Energy’s Current Report on Form 8-K file with the Securities and Exchange Commission on March 31, 2010 (the “Form of Award Agreement”). For the purposes of the Restricted Shares grant
agreement, the Company has informed Executive of his performance targets. 
 (ii) Subsequent Grants.
Starting in fiscal year 2011, during the Employment Period, the Executive shall be eligible to receive equity-based and/or long-term cash compensation awards and performance awards as approved by the Compensation Committee. Executive’s initial
annual target award percentage is expected to be at 120% of Base Salary, and initial annual overachievement award cap is expected to be at 240% of Base Salary, subject to adjustment by the Compensation Committee in its sole and absolute discretion.

 (d) Expenses. The Company shall promptly reimburse the Executive for reasonable legal expenses that the Executive has
incurred in connection with entering into this Agreement, up to a maximum of ten thousand dollars ($10,000), and all reasonable business 

  
 5 

 
expenses incurred during the Employment Period by the Executive in performing services hereunder, including all expenses of travel and living expenses while away from home on business of the
Company or at the request of the Company, provided that, in each case, such expenses are incurred and accounted for in accordance with the policies and procedures established by the Company. All reimbursements with respect to expenses incurred in a
particular taxable year shall be made no later than the end of the Executive’s taxable year following the taxable year in which the expenses were incurred, subject to the Executive’s timely presentment of the applicable receipts to the
Company in accordance with the Company’s expense reimbursement policies and procedures. The amount of reimbursable expenses incurred in one taxable year of the Executive shall not affect the amount of reimbursable expenses in a different
taxable year, and any such reimbursement shall not be subject to liquidation or exchange for another benefit. 
 (e) Other
Benefits. During the Employment Period, the Executive shall be entitled to participate in all of the employee benefit plans and arrangements made available by the Company to its other senior executive officers, subject to and on a basis
consistent with the terms, conditions and overall administration of such plans and arrangements and, with the approval of the Compensation Committee, shall be entitled to perquisites that may be provided to other senior executives. The participation
of Executive and his family in the Company’s medical plan shall begin on his first day of employment, and any preexisting conditions for Executive and his family shall be waived. Notwithstanding the foregoing, the Company shall have the right
to change, amend or discontinue any benefit plan, program, or perquisite, so long as such changes are similarly applicable to senior executive officers of the Company generally. During the Employment Period, the Executive will be entitled to a
monthly perquisites allowance in the amount of one thousand eight hundred and seventy five dollars ($1,875) per month, payable on the first pay day of each calendar month in accordance with the Company’s normal payroll practices. 

(f) Paid Time Off. During the Employment Period, the Executive shall be eligible for paid time off in accordance with the terms
and conditions of the Company’s paid time off policy, as such policy may be in effect from time to time; provided, however, that the Executive shall be eligible for four (4) weeks of paid time off during each calendar year in the
Employment Period, effective as of January 1 of the applicable calendar year, notwithstanding the terms of the Company’s paid time off policy. Unused paid time off may not be carried over from year to year. 

(g) Services Furnished. During the Employment Period, the Executive shall at all times be provided with office space, stenographic
assistance and such other facilities and services as are suitable to his position and are no less favorable than those being provided to other senior executives of the Company. 

(h) Moving Assistance. Executive shall be provided the moving assistance described in Exhibit B. 

5. Offices. Subject to Sections 2, 3 and 4 hereof, the Executive agrees to serve without additional compensation, if elected or
appointed thereto, as a director of any of the Company’s subsidiaries and as a member of any committees of the board of directors of any such 

  
 6 

 
corporations, and in one or more executive positions of the Company or any of its subsidiaries; provided, that the Executive shall be indemnified for serving in any and all such capacities on a
basis no less favorable than is currently or may be provided to any other director of the Company or any of its subsidiaries, or in connection with any such executive position, as the case may be. This indemnity is in addition to and not in
replacement of the Company’s obligations to provide indemnity pursuant to Section 10 hereof. 
 6. Termination.
The Employment Period shall end in the event of a termination of the Executive’s employment in accordance with any of the provisions of Section 6 or 7, and the Term shall expire in the event of any such termination, on the Executive’s
Date of Termination. Upon termination of the Employment Period, the Executive agrees to immediately tender his resignation from all boards of directors, and all officer, employee and committee positions, of the Company and its subsidiaries.

 (a) Death. The Executive’s employment hereunder shall terminate upon the Executive’s death. 

(b) Disability. The Company may terminate the Executive’s employment hereunder for “Disability” if,
the Executive is unable to engage in any substantial gainful activity, with or without reasonable accommodation, by reason of (i) any medically determinable physical or mental impairment expected to result in death or that is expected to last
for a continuous period of not less than twelve (12) months, or (ii) any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months and the Executive has been receiving disability insurance benefits for a period of not less than three (3) months under the Company’s disability benefit plans. 

During any period in which the Executive continues in employment but fails to perform his duties hereunder as a result of Disability
(“Disability Period”), the Executive shall continue to receive his Base Salary at the rate in effect at the beginning of such period as well as all other payments and benefits set forth in Section 4 hereof, reduced by
any payments made to the Executive during the Disability Period under the disability benefit plans of the Company then in effect or under the Social Security disability insurance program. 

(c) Cause. The Company may terminate the Executive’s employment hereunder for Cause. For purposes of this Agreement, the
Company shall have “Cause” to terminate the Executive’s employment hereunder upon the occurrence of any of the following events: 
 (i) the Executive is convicted of an act of fraud, embezzlement, theft or other criminal act constituting a felony; 
 (ii) a material breach by the Executive of the provisions of this Agreement; 
 (iii) the failure by the Executive to perform any and all covenants contained in Section 9 of this Agreement; or 

  
 7 

  
 (iv) a
material breach by the Executive of the Company’s Code of Business Conduct and Ethics or the Code of Ethics for Senior Financial Officers; 

provided, that the Executive shall have thirty (30) business days from the date on which the Executive receives the Company’s Notice of
Termination for Cause under Section 6(c)(ii), 6(c)(iii) or 6(c)(iv) above to remedy any such occurrence otherwise constituting Cause under such Section 6(c)(ii), 6(c)(iii) or 6(c)(iv). 

Cause shall not exist unless and until: (1) the Company has delivered to the Executive a copy of a resolution duly adopted by
the affirmative vote of not less than two-thirds
( 2/3) of the entire membership of the Board at
a meeting of the Board called and held for such purpose (after reasonable notice to the Executive and an opportunity for the Executive, together with his counsel, to be heard before the Board), finding that in the good faith opinion of the Board,
the Executive was guilty of the conduct set forth in this Section 6(c) and specifying the particulars thereof in detail and (2) with respect to the occurrences set forth in Sections 6(c)(ii), 6(c)(iii) and 6(c)(iv), the thirty
(30) business days following the date on which the Executive received the Company’s Notice of Termination for Cause under Section 6(c)(ii), 6(c)(iii) or 6(c)(iv) above has expired without remedy by the Executive. 

(d) Good Reason. The Executive may terminate employment hereunder for “Good Reason,” as follows:

 (i) Good Reason for the Executive’s termination of employment shall mean the occurrence, without the
Executive’s prior written consent, of any one or more of the following: 
 (1) The relocation of the
Principal Place of Employment to a location more than twenty five (25) miles from the Principal Place of Employment; 
 (2) A material reduction in the Executive’s authority, duties, responsibilities or ability to determine reporting relationships, including a material reduction resulting from the assignment to the
Executive of any duties that are materially inconsistent with the Executive’s position, title, office and reporting requirements as then in effect; 
 (3) A material reduction in the Executive’s Base Salary (which, for purposes of this Agreement, means a reduction described in Section 6(d)(iv) below) as then in effect, or a refusal of the
Company to permit the Executive to participate in option or other equity grants or similar long-term incentive compensation opportunities on the same basis as other senior executives of the Company as a group; or 

(4) A material breach by the Company of any provision of this Agreement; 

(5) Except as provided herein, the removal of the Executive from, or the failure to nominate the Executive for election
to, the Board of Directors of Rex Energy or Rex Operating, except in connection with the termination of the Executive’s employment for any reason. 

  
 8 

  
 provided the Executive
gives the Company a written Notice of Termination and opportunity to cure as described in Section 6(d)(iii) below. 
 (ii) If one or more Changes in Control of Rex Energy occurs during the Term, Good Reason for the Executive’s termination of employment shall, in addition to the events listed above, also mean the
occurrence, without the Executive’s prior written consent, of any one or more of the following: 
 (1) The
Company reduces the Executive’s Base Salary, as in effect immediately before the occurrence of the Change in Control of Rex Energy, or as the Executive’s Base Salary may be increased from time to time after that occurrence; 

(2) The Company reduces the Executive’s Annual Bonus target percentage opportunity or long-term incentive
opportunity as in effect immediately before the occurrence of the Change in Control of Rex Energy; 
 (3) The
Company fails to continue to provide the Executive with retirement, savings and welfare plan benefits that are comparable in the aggregate to those enjoyed by the Executive under the Company’s executive compensation and benefit plans, policies,
programs and arrangements in which Executive was eligible to participate immediately before the occurrence of the Change in Control of Rex Energy; provided, however, that Good Reason shall not exist under this subsection (3) if the Executive is
provided with retirement, savings and welfare plan benefits that are comparable in the aggregate to those enjoyed by similarly situated executives of the acquiring company in the Change in Control; 

(4) The Company gives effective notice of an election not to extend this Agreement at the end of the Term (including any
extensions thereof) and the Executive is willing and able to renew this Agreement and to continue providing services to the Company hereunder; or 
 (5) The Company requires a material increase in the Executive’s business travel, which for purposes of this Agreement means an increase in travel of at least ten percent (10%) more than the
level of travel required in the twelve (12) month period immediately preceding the Change in Control (calculated on a daily basis, with each day in which the Executive travels counted as a full day); 

provided the Executive gives the Company a written Notice of Termination and opportunity to cure as described in Section 6(d)(iii)
below. 
 (iii) In any of the foregoing Good Reason situations, the Executive must provide to the Company a
Notice of Termination within sixty (60) days after the event constituting Good Reason. The Company shall have thirty (30) days from the date on which the Company receives the Executive’s Notice of Termination for Good Reason

  
 9 

 
to remedy any such occurrence constituting Good Reason (including paying any unpaid amounts then due and owing to the Executive under this Agreement), as set forth in the Executive’s Notice
of Termination. If the Company does not correct the act or failure to act, the Executive must terminate his employment for Good Reason within thirty (30) days after the end of the cure period, in order for the termination to be considered a
Good Reason termination. 
 (iv) For purposes this Agreement, a material reduction in Base Salary means any
reduction in the Executive’s Base Salary, other than a reduction not in excess of five percent (5%) of the Executive’s Base Salary that is part of an overall equivalent compensation reduction of substantially all the Company’s
employees with titles of Vice President or above, that does not uniquely reduce the Base Salary of the Executive and that occurs before a Change in Control. 
 (e) Change in Control. For purposes of this Agreement, a “Change in Control” of Rex Energy shall mean the occurrence of any of the following events after the Effective Date:

 (i) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act (a “Covered Person”) of beneficial ownership (within the meaning of rule 13d-3 promulgated under the Exchange Act) of thirty percent (30%) or more of either: 

(1) the then outstanding shares of the common stock of Rex Energy (the “Outstanding Rex Energy Common
Stock”), or 
 (2) the combined voting power of the then outstanding voting securities of Rex
Energy entitled to vote generally in the election of directors (the “Outstanding Rex Energy Voting Securities”); 
 provided, however, that for purposes of this Section 6(e)(i), the following acquisitions shall not constitute a Change in Control of Rex Energy: 

(A) any acquisition directly from Rex Energy; 

(B) any acquisition by Rex Energy; 

(C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Rex Energy or any entity
controlled by Rex Energy; or 
 (D) any acquisition by any corporation pursuant to a transaction which complies
with clauses (1), (2) and (3) of Section 6(e)(iii); or 
 (ii) Individuals who, as of the
Effective Date, constitute the Board of Rex Energy (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Rex Energy; provided that any individual becoming a director subsequent to the
Effective Date whose election, or nomination for election by Rex 

  
 10 

 
Energy’s shareholders, was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Covered Person other than the Board of Rex Energy; 
 (iii) Consummation of 
 (A) a reorganization, merger or
consolidation or sale of Rex Energy or any subsidiary of Rex Energy, or 
 (B) a disposition of all or
substantially all of the assets of Rex Energy (a “Business Combination”), 
 in each case, unless,
following such Business Combination, 
 (1) all or substantially all of the individuals and entities who were
the beneficial owners, respectively, of the Outstanding Rex Energy Common Stock and Outstanding Rex Energy Voting Securities immediately prior to such Business Combination beneficially own, direct or indirectly, more than fifty percent
(50%) of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns Rex Energy or all or substantially all of Rex Energy’s assets either directly or through one or more subsidiaries)
in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Rex Energy Common Stock and Outstanding Rex Energy Voting Securities, as the case may be, 

(2) no Covered Person (excluding any employee benefit plan (or related trust) of Rex Energy or such corporation resulting
from such Business Combination) beneficially owns, directly or indirectly, thirty percent (30%) or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined
voting power of the then outstanding voting securities of such corporation, except to the extent that such ownership existed prior to the Business Combination, and 

(3) at least a majority of the members of the board of directors of the corporation resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board of Directors, providing for such Business Combination. 

  
 11 

  
 7. Termination
Procedure. 
 (a) Notice of Termination. Any termination of the Executive’s employment by the Company or by the
Executive (other than termination upon death pursuant to Section 6(a) hereof) shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 12 hereof. For purposes of this Agreement, a
“Notice of Termination” shall mean a notice that shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis
for termination of the Executive’s employment under the provision so indicated. 
 (b) Date of Termination.
“Date of Termination” shall mean (i) if the Executive’s employment is terminated upon death pursuant to Section 6(a) above, the date of the Executive’s death, (ii) if the Executive’s employment
is terminated for Disability pursuant to Section 6(b) above, thirty (30) days after Notice of Termination is given (provided that the Executive shall not have returned to the performance of his duties on a full-time basis during such
thirty (30) day period, with or without reasonable accommodation), (iii) if the Executive’s employment is terminated for Cause pursuant to Section 6(c) above, the date specified in the Notice of Termination, which date may be no
earlier than the date the Executive is given notice in accordance with Section 12 hereof, subject to the cure provisions set forth in Section 6(c), (iv) if the Executive’s employment terminates for Good Reason pursuant to
Section 6(d) above, the date set forth in such Notice of Termination, which shall comply with the notice and cure provisions set forth in Section 6(d), and (v) if the Executive’s employment is terminated for any other reason, the
date specified in the Notice of Termination, which date shall be not later than thirty (30) days following the date on which Notice of Termination is given. 
 8. Compensation upon Termination of Employment. 
 (a) Accrued Obligation
Defined. For purposes of this Agreement, payment of the “Accrued Obligation” shall mean payment by the Company to the Executive (or his designated beneficiary or legal representative, as applicable), when due, of all
vested benefits to which the Executive is entitled under the terms of the employee benefit plans in which the Executive is a participant as of the Date of Termination and a lump sum amount in cash equal to the sum of (i) the Executive’s
Base Salary through the Date of Termination, and (ii) in accordance with the Company’s paid time off policy, any accrued paid time off, to the extent not theretofore paid, which shall be paid within thirty (30) days after the Date of
Termination. 
 (b) Disability; Death. Following the termination of the Executive’s employment pursuant to Sections
6(a) or (b) hereof, the Company shall pay to the Executive (or his designated beneficiary or legal representative, if applicable): 
 (i) the Accrued Obligation, 
 (ii) in the event of the
Executive’s termination of employment by reason of death, a lump sum payment in cash equal to ninety (90) days’ of the Executive’s Base Salary as in effect on the Date of Termination, which shall be paid within thirty
(30) days following the Date of Termination, and 

  
 12 

  
 (iii) in the event of the Executive’s termination of employment by reason of death or Disability, a lump sum separation payment in cash equal to the Executive’s annual cash bonus at the target
achievement level for the fiscal year of the Company in which the Date of Termination occurs, prorated based on service for the year of termination. The pro rated bonus shall be determined by multiplying the target bonus by a fraction, the numerator
of which is the number of days in the fiscal year before the Date of Termination and the denominator is the number of days in the fiscal year. If the Executive’s employment terminates by reason of death, the separation payment shall be paid on
the sixtieth (60th) day following the Date of
Termination, subject to compliance with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). If the Executive’s employment terminates by reason of Disability, the separation payment shall be
paid on the first business day following the end of the six (6) month period following the Date of Termination (the “Commencement Date”), subject to compliance with Section 409A of the Code. The Executive shall not
be entitled to any other payments under the annual cash bonus plan with respect to the fiscal year in which the Date of Termination for death or Disability occurs. 
 (c) By the Company for Cause. If during the Term the Executive’s employment is terminated by the Company for Cause pursuant to Section 6(c) hereof, the Company shall pay to the Executive
the Accrued Obligation. Following such payment, the Company shall have no further obligations to the Executive other than as may be required by law or the terms of an employee benefit plan of the Company. 

(d) By the Executive without Good Reason. If during the Term the Executive terminates his employment for any reason other than
Good Reason, the Company shall pay to the Executive the Accrued Obligation. Following such payment, the Company shall have no further obligations to the Executive other than as may be required by law or the terms of an employee benefit plan of the
Company. The Executive shall not have breached this Agreement merely because he terminates his employment for any reason other than Good Reason. 
 (e) By the Company without Cause or by the Executive for Good Reason. If, (x) during the Term, the Executive’s employment is terminated by the Company other than for Cause, death or
Disability or the Executive terminates employment for Good Reason, or (y) the Company fails to renew the Agreement at the end of the Term and the Company terminates the Executive’s employment without Cause within ninety (90) days
following the end of the Term as set forth in Section 1, then the Company shall pay to the Executive the Accrued Obligation and, subject to the Executive executing and not revoking a Release as described in Section 8(e)(v) and provided
that the Executive complies with the covenants set forth in Section 9: 
 (i) If the Date of Termination
occurs before a Change in Control of Rex Energy or after the twenty-four (24) month period following such Change in Control of Rex Energy: 
 (A) The Company shall pay the Executive severance pay equal to the Executive’s monthly Base Salary (at the rate in effect as of the Date of Termination) for the eighteen (18) month period
following the Date of Termination. The severance payments will begin on the Commencement 

  
 13 

 
Date, and the first payment will include the first six (6) monthly installments, subject to compliance with Section 409A of the Code. The severance payments will continue in
installments in accordance with the Company’s regular payroll practices for the remainder of the eighteen (18) month period following the Date of Termination, subject to compliance with Section 409A; provided, however, that if the
Executive is an employee or independent contractor of a subsequent employer after the end of the twelve (12) month period following the Date of Termination, the severance payments shall immediately cease as of the later of the end of the twelve
(12) month period or the date the Executive begins providing services to a subsequent employer and the Executive shall have no right to continued severance payments pursuant to this Section 8(e)(i)(A) thereafter. The Executive agrees to
notify the Company that he is providing services to a subsequent employer immediately upon commencement of such services. Any unvested equity awards granted pursuant to Section 4(c)(i) above and the first equity award granted in 2011 pursuant
to Section 4(c)(ii) above that are held by the Executive shall continue to vest following the Date of Termination until the end of the period for which severance payments are payable. 

(B) The Company shall pay the Executive a lump sum cash payment equal to the Executive’s annual cash bonus for the
fiscal year of the Company in which the Date of Termination occurs, prorated based on service for the year of termination. For this purpose, the annual bonus shall be calculated as the annual cash bonus that the Executive would have received had the
Executive remained employed through the end of such year, based on the Company’s achievement of the applicable performance goals, and multiplied by a fraction, the numerator of which is the number of days in the fiscal year before the Date of
Termination and the denominator is the number of days in the fiscal year. The bonus payment shall be paid when bonuses are paid to other executives participating in the Annual Incentive Plan or, if later, on the Commencement Date. 

(ii) Notwithstanding the provisions of Section 8(e)(i), if the Date of Termination occurs on or during the
twenty-four (24) month period following a Change in Control of Rex Energy: 
 (A) The Company shall pay to
the Executive severance pay equal to twenty-four (24) months of the Executive’s monthly Base Salary (at the rate in effect as of the Date of Termination) in a lump sum cash payment on the Commencement Date, subject to compliance with
Section 409A of the Code.  
 (B) The Company shall pay to the Executive a lump sum cash separation
payment equal to the Executive’s target annual cash bonus for the fiscal year of the Company in which the Date of Termination occurs, prorated based on service for the year of termination. The pro rated bonus

  
 14 

 
shall be determined by multiplying the target bonus by a fraction, the numerator of which is the number of days in the fiscal year before the Date of Termination and the denominator is the number
of days in the fiscal year. The separation payment shall be paid on the Commencement Date, subject to compliance with Section 409A of the Code. 
 (C) Notwithstanding any other provisions of this Agreement, in the event that any payment or benefit received or to be received by the Executive in connection with a Change in Control (whether pursuant to
the terms of this Agreement or any other plan, arrangement or agreement with the Company, any person whose actions result in a Change in Control or any person affiliated with the Company or such person such as to require attribution of stock
ownership between the parties under Section 318(a) of the Code) (all such payments and benefits, including the severance payments described in Section 8 (the “Severance Payments”), being hereinafter called
“Total Payments”) would be subject (in whole or part), to any excise tax imposed under Section 4999 of the Code, then, after taking into account any reduction in the Total Payments provided by reason of Section 280G
of the Code in such other plan, arrangement or agreement, the cash Severance Payments shall first be reduced, and the noncash Severance Payments shall thereafter be reduced, to the extent necessary so that no portion of the Total Payments is subject
to the Excise Tax but only if (A) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments) is greater than or equal to (B) the net
amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which the Executive would be subject in respect of such
unreduced Total Payments). For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax: 
 (w) No portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of
Section 280G(b) of the Code shall be taken into account; 
 (x) No portion of the Total Payments shall
be taken into account which, in the opinion of tax counsel selected by the Company before the Change in Control (“Tax Counsel”) does not constitute a “parachute payment” within the meaning of Section 280G(b)(2)
of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of Tax Counsel, constitutes reasonable compensation
for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the base amount (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation; and 

  
 15 

  
 (y)
The value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the accounting firm which was, immediately prior to the Change of Control, the Company’s registered public accounting
firm (the “Auditor”) in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. 
 (z) At the time that payments are made under this Agreement, the Company shall provide the Executive with a copy of the Auditor’s calculations setting forth the manner in which such payments were
calculated and the basis for such calculations including, without limitation, any written opinions the Company has received from Tax Counsel or the Auditor with respect to the calculations. 

(iii) The following payments will be made without regard to whether a Change in Control has occurred: 

(A) For the applicable Severance Period, as defined below, the Company shall arrange to provide the
Executive and his dependents medical, dental, health, hospital insurance benefits substantially similar to those provided to the Executive and his dependents immediately prior to the Date of Termination, as such benefit plans may be modified by the
Company from time to time for similarly situated active employees (at no greater cost to the Executive than such cost to the Executive in effect immediately prior to the Date of Termination, or, if greater, the cost to similarly situated active
employees of the Company under the applicable group health plans of the Company), provided that the Executive timely elects coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) and
pays the COBRA premiums for the full cost of the continued coverage. The Executive shall be responsible for paying the full COBRA cost of such coverage, and the Company shall reimburse the Executive monthly for the amount equal to the
Executive’s monthly COBRA cost, less the employee portion of the premium that the Executive would have paid had the Executive continued employment with the Company; provided that reimbursement of the COBRA cost shall be discontinued prior to
the end of the Severance Period if the Executive elects to discontinue COBRA coverage, if the Executive fails to pay the applicable COBRA costs or in accordance with Section 8(e)(iv) below. The COBRA reimbursement payments shall be paid monthly
on the first payroll date of each calendar month, beginning on the sixtieth (60th) day following the Date of Termination, subject to compliance with Section 409A of the Code. The first payment (on the sixtieth (60th) day) will include the first two (2) months of COBRA reimbursements. The Executive understands and agrees
that for purposes of determining the remaining period of the Executive’s COBRA continuation coverage after the end of the Severance Period, the Executive’s “qualifying event” shall be deemed to have occurred on the Date of
Termination. 

  
 16 

  
 (B) On
the Commencement Date, the Company shall pay the Executive a lump sum amount equivalent to the product of the monthly basic life insurance premium applicable to the Executive’s basic life insurance coverage immediately prior to the Date of
Termination times the number of months in the applicable Severance Period, subject to compliance with Section 409A of the Code. The Executive may, at his option, convert his basic life insurance coverage to an individual policy after the Date
of Termination by completing the forms required by the Company for this purpose. 
 (C) For purposes of this
Agreement, “Severance Period” shall mean: 
 (x) the eighteen (18) month period
following the Date of Termination if the Executive’s employment is terminated by the Company without Cause or by the Executive for Good Reason, in either case before a Change in Control of Rex Energy or after the twenty-four (24) month
period following such Change in Control of Rex Energy, or 
 (y) the twenty-four (24) month period
following the Date of Termination if the Executive’s employment is terminated by the Company without Cause or by the Executive for Good Reason, in either case within the twenty-four (24) month period following a Change in Control of Rex
Energy. 
 (iv) Subject to the Executive’s group health plan coverage continuation rights under COBRA, the
benefits described in Section 8(e)(iii) shall be reduced to the extent benefits of the same type are received by or made available to the Executive during such period, and reimbursements under Section 8(e)(iii) shall cease if the Executive
becomes eligible to receive benefits of the same type as described in Section 8(e)(iii). The Executive shall have the obligation to notify the Company that he is entitled to or receiving such benefits. The Company agrees that, if the
Executive’s employment with the Company terminates for any reason during the Term, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to this
Section 8. Further, except with respect to the benefits provided pursuant to Section 8(e)(iii) above, the amount of any payment or benefit provided for in this Agreement shall not be reduced by any compensation earned by the Executive as
the result of employment by another employer, by retirement benefits, or by offset against any amount claimed to be owed by the Executive to the Company. 
 (v) Notwithstanding the foregoing, all payments to the Executive under this Section 8 (other than Accrued Obligations) are contingent upon the

  
 17 

 
Executive’s execution and non-revocation of a release with terms substantially in the form of Exhibit A hereto (the “Release”) within sixty (60) days
following the Executive’s Date of Termination. In consideration of the benefits and compensation which may be awarded to the Executive pursuant to Section 8 of this Agreement, the Executive hereby agrees to execute and be bound by the
Release, as a condition precedent to receiving such benefits and compensation. No severance payments will be paid to the Executive if the Executive does not execute, or if the Executive revokes, the Release. Notwithstanding any provision of this
Agreement to the contrary, in order to comply with Section 409A of the Code, in no event shall the timing of the Executive’s execution of the Release, directly or indirectly, result in the Executive designating the calendar year of
payment, and if a payment that is subject to execution of the Release could be made in more than one taxable year, payment shall be made in the later taxable year. 

(vi) Notwithstanding the foregoing, if a Change in Control of Rex Energy does not meet the requirements of a “change
in control event” under Section 409A of the Code, then the amounts to be paid under Section 8(e)(ii) above will be paid in the forms and at the times set forth in Section 8(e)(i) above, if and as required by Section 409A.

 (f) The applicable grant agreements shall govern the treatment of the Executive’s outstanding options, stock
appreciation rights, restricted stock and other equity grants with respect to Rex Energy stock in the event of a Change in Control. 
 9. Confidential Information; Non-Competition; Non-Solicitation; Non-Disparagement. 
 (a) Confidential Information. 
 (i) The Executive shall hold
in a fiduciary capacity for the benefit of the Company all trade secrets, confidential information, and knowledge or data relating to the Company or its subsidiaries and their businesses, which shall have been obtained by the Executive during the
Executive’s employment by the Company and which shall not have been or hereafter become public knowledge (other than by acts by the Executive or representatives of the Executive, in each case, in violation of this Agreement) (hereinafter being
collectively referred to as “Confidential Information”). For the avoidance of doubt, Confidential Information shall not include information that becomes available to the public other than as a result of a disclosure by the
Executive or that becomes available to the Executive from a source other than the Company or any of its subsidiaries or any of their respective directors, officers, employees, agents or advisors, provided, that such source is not known by the
Executive to be bound by a confidentiality agreement with or other obligation of secrecy to the Company or any of its subsidiaries. 
 (ii) The Executive shall not, without the prior written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any such trade secrets, information,
knowledge or data to anyone other than the Company and those designated by the Company. Any termination of the Executive’s employment or of this Agreement shall have no effect on the continuing operation of this

  
 18 

 
Section 9(a). The Executive agrees to return all Confidential Information, including all photocopies, extracts and summaries thereof, and any such information stored electronically on tapes,
computer disks or in any other manner to the Company at any time upon request by the Company and upon the termination of his employment hereunder for any reason. 
 (b) Non-Competition. 
 (i) During the Employment Period and
the Restricted Period, as defined below, the Executive shall not, within the Restricted Territory, as defined below, engage in Competition, as defined below, with respect to the Company or any of its subsidiaries; provided, that it shall not be a
violation of this Section 9(b) for the Executive to become the registered or beneficial owner of up to five percent (5%) of any class of the capital stock of a corporation registered under the Exchange Act as long as the Executive does not
actively participate in the business of such corporation until such time as this covenant expires. 
 (ii) For
purposes of this Agreement, the “Restricted Period” means the applicable period in clause (A) if the Date of Termination occurs during the Term of the Agreement, or the applicable period in clause (B), (C) or
(D) if the Date of Termination occurs after the end of the Term: 
 (A) The Restricted Period is the
eighteen (18) month period following the Executive’s Date of Termination during the Term for any reason. 
 (B) In the event the Company elects not to renew the Agreement at the end of the Term and the Executive receives severance pay as a result of a termination without Cause under Section 1(c) or a
termination for Good Reason under Section 6(d)(ii)(4), the Restricted Period is the applicable period described in clause (A) above. 
 (C) If clause (B) does not apply, in the event the Company or the Executive elects not to renew the Agreement at the end of the Term, and during the eighteen (18) month period following the end
of the Term the Executive’s employment terminates for any reason other than Cause, the Company will either: 
 (xx) within thirty (30) days after the Date of Termination, offer in writing to provide the Executive with severance pay equal to the Executive’s Base Salary for all or part of the remainder of
the eighteen (18) month period following the end of the Term, subject to the Executive executing and not revoking a Release, in which case the Restricted Period shall be the remainder of the eighteen (18) month period following the end of
the Term (or, if the Company only offers to provide severance pay for a portion of the remainder of the eighteen (18) month period following the end of the Term, the Restricted Period shall be such portion of the period for which the Company
offers severance pay), or 

  
 19 

  
 (yy)
advise the Executive in writing that the Restricted Period shall not apply after the Date of Termination. 
 The severance pay
will be paid at the same time and in the same form as would have applied if the severance pay had been paid under Section 8(e)(i)(A) or Section 8(e)(ii)(A) above, depending on when the Date of Termination occurs (i.e. installments over the
remainder of the eighteen (18) month period described in (xx) above or a lump sum, depending on when the Date of Termination occurs). If the Company offers to provide such severance pay but the Executive does not execute the Release, or
revokes the Release, the Restricted Period will nevertheless run for the remainder of the eighteen (18) month period after the end of the Term, but no severance payments will be paid to the Executive. 

(D) In the event the Company or the Executive elects not to renew the Agreement at the end of the Term, and during the
eighteen (18) month period following the end of the Term the Executive’s employment terminates for Cause, the Restricted Period shall be the applicable period described in clause (A) above, and no severance pay shall be provided.

 (iii) For purposes of this Agreement, “Restricted Territory” means anywhere within a
ten (10) mile radius of any area of mutual interest, evidenced by a written contractual obligation, of the Company or its subsidiaries or any oil or gas property in which the Company or any of its subsidiaries has an interest, or is actually
pursuing or contemplating (as described below) an interest, as of the Date of Termination. The Company or a subsidiary will be considered to be contemplating an interest in property for purposes of this subsection (iii) if the Executive knows
that the Company or a subsidiary is actively contemplating an interest in the property within the 90-day period preceding the Date of Termination, as evidenced by written or electronic correspondence or records. 

(iv) For purposes of this Agreement, “Competition” by the Executive means the Executive’s
engaging in, or otherwise directly or indirectly being employed by or acting as a consultant or lender to, or being a director, officer, employee, principal, agent, stockholder, member, owner or partner of, or permitting his name to be used in
connection with the activities of any other business or organization which competes, directly or indirectly, with the business of the Company or its subsidiaries as the same shall be constituted at any time during the Term. 

(v) The Executive may request that the Board waive the restrictions under this Section 9(b) with respect to the
Executive’s prospective employment with an entity engaged in Competition if the Executive’s work will clearly not relate in any way to the Restricted Territory. The Board shall have sole discretion to determine whether such a waiver will
be allowed and the terms and conditions of any such waiver. 

  
 20 

  
 (c)
Non-Solicitation. During the eighteen (18) month period following the Date of Termination for any reason, if the Date of Termination occurs during the Term or within eighteen (18) months after any non-renewal of the Term, the
Executive agrees that the Executive will not, directly or indirectly, for his benefit or for the benefit of any other person, firm or entity, do any of the following: 

(i) solicit, from any customer that is doing business with the Company or any of its subsidiaries as of the Date of
Termination and is known to Executive, any business of the same or of a similar nature to the business of the Company or its subsidiaries with such customer; 
 (ii) solicit, from any potential customer of the Company or its subsidiaries that is known to the Executive, any business of the same or of a similar nature to that which has been the subject of a known
written or oral bid, offer or proposal by the Company or its subsidiaries, or of substantial preparation with a view to making such a bid, proposal or offer, within six (6) months prior to the Date of Termination; 

(iii) excluding advertisements in mainstream media, solicit the employment or services of any person who was known to be
employed by or was a known consultant to the Company or its subsidiaries upon the Date of Termination, or within six (6) months prior thereto, provided that it shall not be a breach of this Section 9(c)(iii) to solicit or engage a
consultant if the consultant’s services do not interfere with the consultant’s services to the Company or cause the consultant to engage in Competition in the Restricted Territory; or 

(iv) otherwise knowingly interfere with the business or accounts of the Company or its subsidiaries. 

(d) Non-Disparagement. The Executive agrees, and the Company agrees to instruct its officers and directors, not to make any
derogatory, disparaging or false statements intended to harm the business or personal reputation of the other party to this Agreement and, in the case of the Company, of any related companies or their officers and employees. 

(e) Agreements with respect to Covenants. The Executive and the Company agree and acknowledge that the Company is providing the
employment, compensation and benefits under this Agreement in consideration for the Executive’s covenants under this Section 9. The Executive and the Company agree and acknowledge that the Company has a substantial and legitimate interest
in protecting the Company’s and its subsidiaries’ Confidential Information and goodwill. The Executive and the Company further agree and acknowledge that the provisions of this Section 9 are reasonably necessary to protect the
Company’s and its subsidiaries’ legitimate business interests and are designed to protect the Company’s and its subsidiaries’ Confidential Information and goodwill. The Executive agrees that the scope of the restrictions as to
time, geographic area, and scope of activity in this Section 9 are reasonably necessary for the protection of the Company’s and its subsidiaries’ legitimate business interests and are not oppressive or injurious to the public
interest. The Executive and the Company agree that in the event of a breach or threatened breach of any of the provisions of this Section 9, the Company or the Executive, as applicable, shall be entitled to injunctive relief against the

  
 21 

 
Executive’s or the Company’s activities, as applicable, to the extent allowed by law, and the Executive and the Company waive any requirement for the posting of any bond by the Company
or the Executive, as applicable, in connection with such action. The Executive further agrees that any breach or threatened breach of any of the provisions of Section 9(a) would cause injury to the Company for which monetary damages alone would
not be a sufficient remedy. 
 (f) Permitted Disclosure. Nothing in this Agreement shall prohibit or restrict the
Executive or the Company from (i) making any disclosure of relevant and necessary information or documents in any action, investigation or proceeding, as required by law or legal process; or (ii) participating, cooperating, or testifying
in any action, investigation, or proceeding with, or providing information to, any governmental agency or legislative body, any self-regulatory organization, or the Company’s Legal Department, provided that, to the extent permitted by law, upon
the Executive’s receipt of any subpoena, court order or other legal process compelling the disclosure of any such information, documents, or testimony, the Executive shall give prompt prior written notice to the Company, and the Executive will
make no disclosure until the Company has had a reasonable opportunity to contest the right of the requesting person or entity to such disclosure. 
 10. Indemnification; Insurance. The Company shall indemnify the Executive to the fullest extent permitted by the laws of the Company’s state of incorporation in effect at the time and the
certificate of incorporation and by-laws of the Company. The Executive will be entitled to any insurance policies the Company may elect to maintain generally for the benefit of officers and directors of the Company and its subsidiaries against all
costs, charges and expenses incurred in connection with any action, suit or proceeding to which the Executive may be made a party by reason of being a director or officer of the Company or its subsidiaries. 

11. Successors Binding Agreement. 
 (a) Company’s Successors. The Company may require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement,
“Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which executes and delivers the agreement provided for in this Section 11 or which otherwise becomes
bound by all the terms and provisions of this Agreement by operation of law. 
 (b) Executive’s Successors. This
Agreement and all rights of the Executive hereunder shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the
Executive should die while any amounts would still be payable to him hereunder if he had continued to live, all such amounts unless otherwise provided herein shall be paid in accordance with the terms of this Agreement to the Executive’s
devisee, legatee or other designee or, if there is no such designee, to the Executive’s estate. 

  
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 12. Notice. For
the purposes of this Agreement, notices, demands and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or (unless otherwise specified) mailed by United States
certified or registered mail or nationally recognized overnight courier (such as Federal Express, Express Mail or UPS), in each case, return receipt requested, postage prepaid, addressed as follows: 

If to the Executive: 
 Daniel J. Churay 
 5602 West 144th Terrace 

Overland Park, Kansas 66223 
 If to the Company: 
 Rex Energy Corporation 

Rex Energy Operating Corp. 
 Attention: General Counsel 
 476 Rolling Ridge Drive, Suite 300 

State College, Pennsylvania 16801 
 Chairman, Compensation Committee 
 Rex Energy Corporation 

c/o Mims Maynard Zabriskie 
 Morgan Lewis & Bockius, LLP 
 1701 Market Street 

Philadelphia, PA 19103 
 or to
such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 

13. Amendment or Modification; Waiver. No provisions of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing signed by the Executive and such officer or director of the Company as may be specifically designated by the Board or the Compensation Committee. No waiver by either party hereto at any time of any
breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in Agreement. 

14. Governing Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of
the Commonwealth of Pennsylvania without regard to its conflicts of law principles. 
 15. Miscellaneous. All references
to sections of any statute shall be deemed also to refer to any successor provisions to such sections. The respective rights and obligations of the parties hereunder shall survive the termination of the Term to the extent necessary to preserve

  
 23 

 
such rights and obligations, including, without limitation, Sections 8, 9, 10 and 11. The Executive shall not be a participant in and shall not be entitled to receive benefits pursuant to any
other severance plan, program, policy or arrangement of the Company. 
 16. Severability. The invalidity or
unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect throughout the Term. Should any one or more of
the provisions of this Agreement be held to be excessive or unreasonable as to duration, geographical scope or activity, then that provision shall be construed by limiting and reducing it so as to be reasonable and enforceable to the extent
compatible with the applicable law. 
 17. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed to be an original but all of which together will constitute one and the same instrument. 
 18.
Withholding. All payments under this Agreement shall be made subject to applicable tax withholding, and the Company may withhold from any amounts payable to the Executive relating to the Executive’s employment with the Company such
federal, state, local and foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. The Executive shall bear all expense of, and be solely responsible for, all federal, state, local and foreign taxes due with
respect to any payment received under this Agreement. 
 19. Deferred Compensation. Notwithstanding any provision of this
Agreement to the contrary, this Agreement is intended to meet the requirements of Section 409A of the Code to the extent applicable, the parties intend to administer this Agreement in a manner that is consistent with those requirements or an
exception thereto, and this Agreement shall be construed and interpreted in accordance with such intent. If and to the extent applicable, severance benefits shall be paid first under the “short-term deferral exception” and then under the
“separation pay exception” of Section 409A, and any payments that are considered deferred compensation under Section 409A and that are paid to a “specified employee” (as defined in Section 409A of the Code) upon
separation from service shall be subject to a six (6) month delay, if required by Section 409A. If required by Section 409A, any amounts otherwise payable during the six (6) month period that commences on and follows the
Executive’s Date of Termination shall be paid in one lump sum amount on the first business day following the six (6) month period following the Executive’s Date of Termination (or within thirty (30) days of the Executive’s
death, if earlier). For purposes of Section 409A of the Code, all payments to be made upon a termination of employment under this Agreement may only be made upon a “separation from service” (within the meaning of such term under
Section 409A of the Code). Each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments shall be treated as the right to a series of separate payments. In no event shall the
Executive, directly or indirectly, designate the calendar year of a payment. All reimbursements under this Agreement shall be provided in a manner that complies with Section 409A of the Code, if applicable. If required by regulations or other
guidance issued under Section 409A of the Code or a court of competent jurisdiction, the provisions regarding payments hereunder shall be amended to provide for such payments to be made at the time allowed under such regulations, guidance or
authority that most closely achieves the intent of this Agreement. 

  
 24 

  
 20. Entire
Agreement. This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and, as of the Effective Date, supersedes all prior agreements, promises, covenants, arrangements, communications,
representations or warranties, whether oral or written, by any officer, employee or representative of any party hereto, including the Offer Letter, except as certain provisions of the Offer Letter are incorporated herein. 

21. Effectiveness; Survival. This Agreement shall become effective upon approval of the Board. The Company shall provide a
certified copy of the resolution evidencing such approval. The provisions of this Agreement that, by their terms, continue in effect after the end of the Term of this Agreement shall continue in effect as necessary to carry out their purposes.

 IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written. 

 

			
	Rex Energy Corporation
		
	By:	 	  

		 	Lance Shaner
		 	Chairman of the Board
	
	Rex Energy Operating Corp.
		
	By:	 	  

		 	[Printed Name]
		 	[Title]
	
	Daniel J. Churay
	  

  
 25 

  
 EXHIBIT A

 RELEASE 
  

	1.	Complete Release 

 In
consideration of the separation pay and benefits continuation set forth in Section              of this General Release Agreement (“Agreement”), as well as
the other benefits that this Agreement provides, Employee (on Employee’s own behalf and on behalf of Employee’s heirs and other legal representatives and assigns) releases the Company, its subsidiaries and affiliates, and the employees,
officers, directors, representatives, attorneys and agents of any of them, and their respective successors, predecessors and assigns, from all legally waivable claims, charges, costs, attorney fees or demands Employee may have based on
Employee’s employment with the Company or the cessation of that employment. This includes a release of any rights or claims Employee may have under the following (as each may be amended through the date of this Agreement): 

 

	 	A.	the Age Discrimination in Employment Act of 1967, as amended, and the Older Workers Benefit Protection Act, which (among other things) prohibit age discrimination in
employment; 

  

	 	B.	the Civil Rights Acts of 1866 or 1871, Title VII of the Civil Rights Act of 1964 and the Civil Rights Act of 1991, which (among other things) prohibit discrimination in
employment based on race, color, national origin, religion or sex; 

  

	 	C.	the Americans with Disabilities Act, which (among other things) prohibits discrimination in employment against qualified disabled individuals; 

 

	 	D.	the Equal Pay Act, which (among other things) prohibits paying men and woman unequal pay for equal work; 

 

	 	E.	the Pregnancy Discrimination Act, 

  

	 	F.	the Family and Medical Leave Act, 

  

	 	G.	the Employee Retirement Income Security Act, 

  

	 	H.	the National Labor Relations Act, 

  

	 	I.	the Labor Management Relations Act, 

  

	 	J.	the Sarbanes-Oxley Act of 2002, 

  

	 	K.	the Pennsylvania Wage Payment and Collection Law, 

  

	 	L.	the Pennsylvania Human Relations Act, or 

  

	 	M.	any other federal, state or local laws, rules or regulations prohibiting employment discrimination or regulating human or civil rights. 

This also includes a release by Employee of any claims for wrongful discharge or any tort, contract or common law claims, including claims
for past or future loss of pay or benefits, expenses, damages for pain and suffering, mental anguish or emotional distress damages, liquidated damages, punitive damages, compensatory damages, attorney’s fees, interest, court costs, physical or
mental injury, damage to reputation, and any other injury, loss, damage or expense or any other legal or equitable remedy of any kind whatsoever. This release covers both claims that Employee knows about and those he may not know about. This
Agreement does not affect Employee’s ability to file a charge with or participate in any investigation or proceeding by the Equal Employment Opportunity Commission, although Employee agrees and understands that he will not receive any personal
relief from any such charge. 
 Employee waives any right he may have under any dispute resolution process of the Company to
arbitrate the claims which Employee has released by entering into this Agreement. This release does not include, however, a release of the following: 
  

	 	(1)	Employee’s right, if any, to vested pension or retirement savings plan benefits under the Company’s standard programs, plans and policies;

  

	 	(2)	Claims Employee may have against Company or its insurers for indemnification under corporate charters or by-laws, director and officer insurance, or other similar
protection afforded Company officers or directors to provide them with protection from claims third parties may make. 

  

	 	(3)	Claims Employee may have against Company for failing to comply with any provision of this Agreement. 

 

	2.	No Future Lawsuits. 

Employee promises never to file a lawsuit asserting any claims that are released in Section 1. If Employee or anyone else on
Employee’s behalf files a lawsuit asserting any of these claims, Employee waives his right to receive any monetary award or reinstatement as an employee of the Company. Employee agrees that this Agreement is a complete and total bar to his
reemployment or to recovery of any money from the Company resulting from any lawsuit, charge or complaint raising any claims that are released in Section 1. Employee understands that he is not waiving the right to test the knowing and voluntary
nature of this release agreement in court. 
  

	3.	Non-Admission of Liability. 

 The Company makes this Agreement to avoid the cost of defending against any possible lawsuit. By making this Agreement, the Company does not admit that it has done anything wrong. 

  

	4.	Non-Release of Future ADEA Claims. 

 This Agreement does not waive or release any rights or claims that Employee may have under the Age Discrimination in Employment Act or any other laws or statutes that arise after the date Employee signs
this Agreement. 
  

	5.	Period for Review and Consideration of Agreement; Employee’s Right to Revoke Agreement. 

Employee understands that Employee has up to 21 days to review and consider this Agreement. If Employee should elect to sign this
Agreement in less than 21 days, Employee expressly waives Employee’s right to the full 21-day period to review and consider this Agreement. Employee further understands that Employee may revoke the Agreement at any time during the seven-day
period following Employee’s signing of the Agreement. Employee further understands that, if Employee fails to sign the Agreement or revokes the Agreement, Company shall have no obligation to provide separation pay and paid benefits continuation
set forth in Section              of this Agreement, as well as the other benefits described in this Agreement, to Employee. Revocation shall be in writing and shall be effective
upon timely receipt by [TO BE FILLED IN]. 
  

	6.	Consultation with Attorney. 

 Employee acknowledges that Company has afforded Employee an opportunity to engage and consult with legal counsel of Employee’s choosing in connection with the negotiation and entering into of this
Agreement, and that he has, in fact, consulted with legal counsel prior to entering into this Agreement. 
  

	7.	Restrictive Covenants and Harmful Statements. 

 Employee and the Company acknowledge and agree that Section 9 of the Employment Agreement entered into by and between Employee and the Company as of
            , 2010 shall remain in full force and effect following Employee’s termination of employment according to the terms of Section 9, including the expiration or
termination provisions thereof, and that the terms thereof are hereby specifically incorporated herein and made part hereof. 
  

	8.	Binding Effect. 

 This
Agreement is binding on the representatives, heirs, successors and assigns of Employee and the Company. 
  

	9.	Severability. 

 The
provisions of this Agreement are severable, that is, if any part of it is found to be invalid or unenforceable, the other parts will remain valid and enforceable and shall be construed to the greatest extent possible to be enforceable as written.

  

	10.	Return of Company Property. 

 Employee has returned or will immediately return to the Company all Company information and related reports, files, memoranda and records, computer disks or other storage media, physical or personal
property which Employee was provided during his employment, including credit cards, card key passes, door and file keys, computers, 

 
cellular phone, pagers or leased vehicle. Employee has returned or will immediately return to the Company all which Employee received or prepared or helped prepare in connection with his
employment, and Employee has not retained or will not retain any copies, duplicates, reproductions or excerpts thereof. 

  
 EXHIBIT B

 MOVING ASSISTANCE 
 Executive expects to move his residence from Overland Park, Kansas to the State College, Pennsylvania area after the close of the 2010-11 school year but no later than the beginning of the 2011-12 school
year for his minor son (the “Outside Move Date”). The Company agrees to pay Executive reasonable coach air fare, car rental, travel and living expenses for Executive to travel weekly between these locations until Executive
completes the move of his residence and reasonable coach air fare for Executive’s family to visit Executive in State College on occasion. If Executive has not sold Executive’s residence in Overland Park, Kansas on or before the Outside
Move Date, the Compensation Committee may either authorize the Company to purchase Executive’s home (for ultimate resale by the Company) or extend the Outside Move Date a month at a time. 

The Company shall reimburse Executive for the difference between $645,000 and the amount for which Executive sells his residence in Overland Park, Kansas
that is below $645,000. Executive will not agree to a sales contract that is more than $40,000 below $645,000 without the approval of the Compensation Committee. Upon identifying a buyer, the Company may require Executive to sell Executive’s
home to the Company or its designee (who then may resell to a buyer). The Company shall pay Executive’s real estate selling commission on Executive’s home and normal closing costs on the purchase of his new home not to include discount
points and mortgage insurance. The closing statement must specify the loan origination fee and loan discount points separately. The reimbursements described in this paragraph shall be paid no later than 15 days after the applicable date upon which
Executive may claim the reimbursement (but in no event later than the date permitted under Section 409A of the Code); provided that no payment will be made if Executive terminates employment without Good Reason or Executive’s employment is
terminated for Cause before the date of the expense to be reimbursed. 
 The Company shall pay Executive the reasonable cost of packing, moving
and unpacking Executive’s household goods and automobiles to a new residence in the State College, Pennsylvania area, including any temporary storage. 
 To the extent any of these expenses in Exhibit B are taxable to Executive, the Company agrees to pay to the Executive an additional payment in an amount that after payment by the Executive of all taxes
imposed upon the payments on a grossed-up basis, the Executive retains an amount equal to the expenses prior to the taxes. The tax gross up payments shall be made at the same time as the underlying expenses are paid. 

The Compensation Committee shall monitor these expenses in Exhibit B on a monthly basis. 

  
 1-

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