Document:

exhibit10.htm

    
 

    
      

      

    

     

     

    
 

    

    

    

     

    

    

      
        	
                First
      Amendment

              
	 
      
	
                to

              
	 
      
	
                Credit
      Agreement

              
	 
      
	
                among

              
	 
      
	 
      
	
                Rex
      Energy Corporation,

              
	
                as
      Borrower,

              
	 
      
	
                KeyBank
      National Association,

              
	
                as
      Administrative Agent,

              
	 
      
	
                and

              
	 
      
	
                The
      Lenders Signatory Hereto

              
	 
      
	
                Effective
      as of April 14, 2008

              
	 
      

      

     

     

     

     

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

     

    First
Amendment to Credit Agreement

    

    This
First Amendment to Credit Agreement (this “First Amendment”)
executed effective as of the 14th of April, 2008 (the “First Amendment Effective
Date”) is among Rex Energy Corporation, a corporation formed under the
laws of the State of Delaware (the “Borrower”); KeyBank
National Association, as administrative agent for the Lenders (in such capacity,
together with its successors, the “Administrative
Agent”), and the Lenders signatory hereto.

     

    Recitals

    

    A.           The
Borrower, the Administrative Agent and the Lenders are parties to that certain
Cred it Agreement dated as of September 28, 2007 (the “Credit Agreement”),
pursuant to which the Lenders have made certain credit available to and on
behalf of the Borrower.

    

    B.           The
Borrower has requested and the Administrative Agent and the Lenders have agreed
to amend certain provisions of the Credit Agreement.

    

    C.           NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein
contained, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

    

    Section
1.     Defined
Terms.  Each capitalized term which is defined in the Credit
Agreement, but which is not defined in this First Amendment, shall have the
meaning ascribed such term in the Credit Agreement.  Unless otherwise
indicated, all section references in this First Amendment refer to the Credit
Agreement.

    

    Section
2.     Amendments to Credit
Agreement.

    

    2.1     
Amendments to Section
9.18.  Section 9.18 is hereby amended by deleting such Section
in its entirety and replacing it with the following:

     

    “Section
9.18 Swap
Agreements.  The Borrower will not, and will not permit any
Subsidiary to, enter into any Swap Agreements with any Person other than (a)
Swap Agreements in respect of commodities (i) with an Approved Counterparty and
(ii) the notional volumes for which (when aggregated with other commodity Swap
Agreements then in effect other than basis differential swaps on volumes already
hedged pursuant to other Swap Agreements) do not exceed, as of the date such
Swap Agreement is executed, 85% of the reasonably anticipated projected
production from Proved Developed Producing Reserves for the 36 months following
the date such Swap Agreement is entered into, and 75% thereafter, for each of
crude oil and natural gas, calculated separately, and (b) Swap Agreements in
respect of interest rates with an Approved Counterparty, as follows: (i) Swap
Agreements effectively converting interest rates from fixed to floating, the
notional amounts of which (when aggregated with all other Swap Agreements of the
Borrower and its Subsidiaries then in effect effectively converting interest
rates from fixed to floating) do not exceed 50% of the

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     then
outstanding principal amount of the Borrower’s Debt for borrowed money which
bears interest at a fixed rate and (ii) Swap Agreements
effectively converting interest rates from floating to fixed, the notional
amounts of which (when aggregated with all other Swap Agreements of the Borrower
and its Subsidiaries then in effect effectively converting interest rates from
floating to fixed) do not exceed the greater of $20,000,000 and 75% of the then
outstanding principal amount of the Borrower’s Debt for borrowed money which
bears interest at a floating rate, and (iii) Swap Agreements required under
Section 6.01(q)  In no event shall any Swap Agreement contain any
requirement, agreement or covenant for the Borrower or any Subsidiary to post
collateral or margin to secure their obligations under such Swap Agreement or to
cover market exposures other than collateral provided for in, and upon the terms
and conditions set forth in, this Agreement and the relevant Security
Instruments.”

    

    2.2          
 Section
3.05.  Section 3.05 is hereby amended by adding the following
subsection (d):

    

    “(d)         Borrowing Base Increase
Fees.  The Borrower agrees to pay to the Administrative Agent,
for the account of each Lender then party to this Agreement, ratably in
accordance with its Applicable Percentage, a Borrowing Base increase fee equal
to 25 bps on the amount of any increase of the Borrowing Base over the highest
Borrowing Base previously in effect, payable on the effective date of any such
increase to the Borrowing Base.”

     

    2.3           Annex
I.  Annex I is hereby amended and restated as
follows:

     

    Aggregate
Maximum Credit Amounts

                                                

    
      
        	 	
                Name
      of Lender

              	
                Maximum
      Credit Amount

              	 
	 	
                KeyBank
      National Association

              	
                $57,777,778

              	 
	  	
                BNP
      Paribas

              	
                $40,000,000

              	 
	 	
                Sovereign
      Bank

              	
                $35,555,556

              	 
	 	
                Allied
      Irish Bank

              	
                $33,333,333

              	 
	 	
                M&T
      Bank

              	
                $33,333,333

              	 
	 	
                TOTAL

              	
                $200,000,000

              	 

      

    Section
3.     Borrowing
Base.  Pursuant to Section 2.07 of the Credit Agreement, the
Borrowing Base is hereby increased from $75,000,000 to $90,000,000, until the
next Redetermination Date.

     

    Section
4.     Conditions
Precedent.  The effectiveness of this First Amendment is
subject to the receipt by the Administrative Agent of the following documents
and satisfaction of the other conditions provided in this Section 4, each
of which shall be reasonably satisfactory to the Administrative Agent in form
and substance:

    

    4.1           First
Amendment.  The Administrative Agent shall have received
multiple counterparts as requested of this First Amendment from the Borrower and
each Lender.

    

    
      
         

      

      
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    4.2           Payment of Outstanding
Invoices.  Payment by the Borrower to the Administrative Agent
of all fees, including the Borrowing Base increase fee pursuant to Section
3.05(d) of the Credit Agreement, and other amounts due and payable on or prior
to the First Amendment Effective Date, including, to the extent invoiced,
reimbursement or payment of all out-of-pocket expenses required to be reimbursed
or paid by the Borrower.

    

    4.3           Promissory
Notes.  The Administrative Agent shall have received duly
executed Notes payable to the order of each Lender in a principal amount equal
to its Maximum Credit Amount dated as of the date hereof.

     

    4.4           No
Default.  No Default or Event of Default shall have occurred
and be continuing as of the First Amendment Effective Date.

    

    Section
5.     Representations and
Warranties; Etc.  The Borrower hereby affirms:  (a)
that as of the date of execution and delivery of this First Amendment, all of
the representations and warranties contained in each Loan Document to which the
Borrower is a party are true and correct in all material respects as though made
on and as of the First Amendment Effective Date (unless made as of a specific
earlier date, in which case, was true as of such date); and (b) that after
giving effect to this First Amendment and to the transactions contemplated
hereby, no Defaults exist under the Loan Documents or will exist under the Loan
Documents.

    

    Section
6.      Miscellaneous.

    

    6.1           Confirmation.  The
provisions of the Credit Agreement (as amended by this First Amendment) shall
remain in full force and effect in accordance with its terms following the
effectiveness of this First Amendment.

    

    6.2           Ratification and Affirmation
of the Borrower.  The Borrower hereby expressly (i)
acknowledges the terms of this First Amendment, (ii) ratifies and affirms its
obligations under the Credit Agreement and the other Security Instruments to
which it is a party, (iii) acknowledges, renews and extends its continued
liability under the Credit Agreement and the other Security Instruments to which
it is a party remains in full force and effect with respect to the Indebtedness
as amended hereby.

    

    6.3           Counterparts.  This
First Amendment may be executed by one or more of the parties hereto in any
number of separate counterparts, and all of such counterparts taken together
shall be deemed to constitute one and the same instrument.

    

    6.4           No Oral
Agreement.  This written First Amendment, the Credit Agreement
and the other Loan Documents executed in connection herewith and therewith
represent the final agreement between the parties and may not be contradicted by
evidence of prior, contemporaneous, or unwritten oral agreements of the
parties.  There are no subsequent oral agreements between the
parties.

    

    
      
         

      

      
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    6.5           Governing
Law.  This First Amendment (including, but not limited to, the
validity and enforceability hereof) shall be governed by, and construed in
accordance with, the laws of the State of Texas.

    
      
        
           

        

         

      

      
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    IN
WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly
executed effective as of the date first written above.

    

    

    BORROWER:                                                                                                                                                               REX ENERGY CORPORATION

    

    

    
      	 	
              By:

            	
              /s/  Benjamin
      W. Hulburt

            	 
	 	
              Name:

            	
              Benjamin
      W. Hulburt

            	 
	 	
              Title:

            	
              Chief
      Executive Officer

            	 

    

    

    

    

    ADMINISTRATIVE
AGENT:                                                                                                                                 
 KEYBANK NATIONAL ASSOCIATION

                                         
as Administrative Agent and Lender

    

    
      	 	
              By:

            	
              /s/  Kevin
      Hays

            	 
	 	
              Name:

            	
              Kevin
      Hays

            	 
	 	
              Title

            	
              Director

            	 

    

    

    
      
        
          

          First
Amendment

          Signature Page - 6

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    LENDERS:                                                                                                                                                                    BNP PARIBAS

     

    
      	 	
              By:

            	
              /s/  Douglas
      R. Liftman

            	 
	 	
              Name:

            	
              Douglas
      R. Liftman

            	 
	 	
              Title:

            	
              Managing
      Director

            	 

    

    

     

    
      	 	
              By:

            	
              /s/  Betsy
      Jocher

            	 
	 	
              Name:

            	
              Betsy
      Jocher

            	 
	 	
              Title:

            	
              Director

            	 

    

    
      
        
          

          First
Amendment

          Signature Page - 7

          

        

         

      

      
        
        

        
          

        

      

      
         

      

    

     

                                               
SOVEREIGN BANK

     

    
      	 	
              By:

            	
              /s/  Robert
      D. Lanigan

            	 
	 	
              Name:

            	
              Robert
      D. Lanigan

            	 
	 	
              Title:

            	
              Sovereign
      Bank

            	 

    

    

     

    

    
      
        
          

          First
Amendment

          Signature Page - 8

          

        

         

      

      
         

        
          

        

      

      
         

      

    

     

                                                                                                                                                                                          
ALLIED IRISH BANK

     

    
      	 	
              By:

            	
              /s/
      David O’Driscoll

            	 
	 	
              Name:

            	
              David
      O’Driscoll

            	 
	 	
              Title:

            	
              Assistant
      Vice President

            	 

    

    

     

    
      	 	
              By:

            	
              /s/
      Roisin O’Connell

            	 
	 	
              Name:

            	
              Roisin
      O’Connell

            	 
	 	
              Title:

            	
              Vice
      President

            	 

    

    
      
        
          

          First
Amendment

          Signature Page - 9

          

        

         

      

      
         

        
          

        

      

      
         

      

    

                                                

    
                                                                                                                                                            
M & T BANK

       

    

    
      	 	
              By:

            	
              /s/
      David Ladori

            	 
	 	
              Name:
      

            	
              David
      Ladori

            	 
	 	
              Title:

            	
              Assistant
      Vice President

            	 

    

    
 

     

    
      
        
          

          First
Amendment

          Signature Page - 10*

AFFILIATE STOCK PURCHASE AGREEMENT

THIS AFFILIATE STOCK PURCHASE AGREEMENT (“Agreement”) is made as of the 14th day of April, 2008, by and between SERGE WILSON (“Seller”) and GENERATION ENERGY, INC. (“Purchaser”) as to 2,000,000 shares, of STARTALE GROUP, INC.

RECITALS

WHEREAS, the Seller is the owner of 2,000,000 restricted shares of common stock of STARTALE GROUP, INC., a NEVADA corporation (the "Company"); and

WHEREAS, the Seller proposes to sell to the Purchaser the 2,000,000 restricted shares of common stock of the Company currently owned by the Seller (the “Purchased Shares”), on the terms set forth herein.

In consideration of the premises, representations, warranties and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.

PURCHASE AND SALE AND CLOSING

1.1

The Seller hereby agrees to sell, assign, transfer and deliver to the Purchaser, and the Purchaser hereby agrees to purchase from the Seller, the Purchased Shares for an aggregate purchase price of TWENTY FIVE THOUSAND and no/100 U.S. Dollars ($25,000) (the "Purchase Price") payable on the Closing Date (as defined below).

1.2

Closing.  The closing (“Closing”) of the transactions contemplated hereby will occur on, or, before the 14th day of April, 2008 (the “Closing Date”).

2.

REPRESENTATIONS AND WARRANTIES OF THE SELLER 

2.1

The Seller warrants, covenants and represents to the Purchaser with the intention of inducing the Purchaser to enter into this Agreement that:

(a)

immediately prior to and at the Closing, the Seller shall be the legal and beneficial owner of the Purchased Shares and on the Closing Date, the Seller shall transfer to the Purchaser the Purchased Shares free and clear of all liens, restrictions, covenants or adverse claims of any kind or character;

(b)

the Seller has the legal power and authority to execute and deliver this Agreement and all other documents required to be executed and delivered by the Seller hereunder and to consummate the transactions contemplated hereby; and

(c)

the Seller is, or has been during the past ninety (90) days, an officer, director, 10% or greater shareholder or "affiliate" of the Company, as that term is defined 

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in Rule 144 promulgated under the United States Securities Act of 1933, as amended (the "Securities Act");

(d)

to the best of the knowledge, information and belief of the Seller there are no circumstances that may result in any material adverse effect to the Company or the value of the Purchased Shares that are now in existence or may hereafter arise;

(e)

as of the Closing Date the Seller shall not be indebted to the Company and the Company shall  not be indebted to the Seller;

(f)

the Seller does not now, nor will it prior to or on the Closing Date, own, either directly or indirectly, or exercise direction or control over any common shares of the Company other than the Purchased Shares;

(g)

the authorized capital of the Company consists of 75,000,000 common shares, par value $0.001, of which a total of 10,500,000 common shares have been validly issued, are outstanding and are fully paid and non-assessable;

(h)

no person, firm or corporation has any right, agreement, warrant or option, present or future, contingent or absolute, or any right capable of becoming a right, agreement or option to require the Company to issue any shares in its capital or to convert any securities of the Company or of any other company into shares in the capital of the Company;

(i)

as of the closing, the liabilities of the Company whether accrued, contingent or otherwise, shall be less than $3,000.00; and the Seller will pay any outstanding liability of the Company with the Purchase Price

(j)

the Company does not beneficially own, directly or indirectly, shares in any other corporate entity;

(k)

the Company has good and marketable title to all of its assets, and such assets are free and clear of any financial encumbrances not disclosed in the Financial Statements; 

(l)

the Company has filed all reports required to be filed by it under the Securities Act and the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”), including pursuant to Section 13(a) or 15(d) of the Exchange Act, (the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.  As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the United States Securities and Exchange Commission (the “Commission”) promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  The financial statements of the Company included in the SEC 

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Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing; 

(m)

the Company is not a party to or bound by any agreement or understanding granting registration or anti-dilution rights to any person with respect to any of its equity or debt securities; no person has a right to purchase or acquire or receive any equity or debt security of the Company; 

(n)

the Company is in compliance with the applicable provisions of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder; 

(o)

contemporaneously herewith, the Seller as a director shall appoint a representative of the Buyer to the Board of Directors of the Company;

(p)

the Seller and all other officers and directors of the Company shall tendered their resignations as officers and directors of the Company, to be effective on the Closing Date;

(q)

the Seller agrees to execute and deliver such other documents and to perform such other acts as shall be necessary to effectuate the purposes of this Agreement; and

(r)

there are no claims threatened or against or affecting the Company nor are there any actions, suits, judgments, proceedings or investigations pending or, threatened against or affecting the Company, at law or in equity, before or by any Court, administrative agency or other tribunal or any governmental authority or any legal basis for same.

(s)

the Company’s shares are DTC eligible.

3.

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 

3.1

The Purchaser represents and warrants to the Seller that the Purchaser:

(a)

has the legal power and authority to execute and deliver this Agreement and to consummate the transactions hereby contemplated; 

(b)

understands and agrees that offers and sales of any of the Purchased Shares prior to the expiration of a period of one year after the date of completion of the transfer of the Purchased Shares (the "Restricted Period") as contemplated in this Agreement shall only be made in compliance with the safe harbor provisions set forth in Rule 144, or pursuant to the registration provisions of the Securities Act or pursuant to an exemption therefrom, and that all offers and sales after the Restricted Period shall be made only in compliance with the registration provisions of the Securities Act or an exemption therefrom; and

(c)

is acquiring the Purchased Shares as principal for the Purchaser's own account, for investment purposes only, and not with a view to, or for, resale, distribution or 

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fractionalisation thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in the Purchased Shares

3.2

The Purchaser agrees not to engage in hedging transactions with regard to the Purchased Shares accept in compliance with the Securities Act.

4.

INDEMNIFICATION

4.1

The Seller hereby agrees to indemnify and hold harmless the Purchaser and the Company against any losses, claims, damages or liabilities to which the Seller or the Company may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon taxes, real property leases or equipment leases payable by or for which the Company has the primary liability; and in particular, any misrepresentation of the Seller as contained herein.  Damages of the Purchaser are not limited to the amount of the Seller received hereunder but will include the Purchaser’s or Company’s actual cost of any claim and full costs of negotiations and for defence.

5.

POST-CLOSING SEC REPORTS 

5.1

Except for any Form 3, 4 or 5 to be filed on behalf of the Seller, the Purchaser hereby agrees that it shall file any and all necessary SEC Reports, including but not limited to any Schedule 13D, 8-K or any other SEC Report.

6.

MISCELLANEOUS

6.1

The parties hereto acknowledge that they have obtained independent legal advice with respect to this Agreement and acknowledge that they fully understand the provisions of this Agreement.

6.2

Unless otherwise provided, all dollar amounts referred to in this Agreement are in United States dollars.

6.3

There are no representations, warranties, collateral agreements, or conditions concerning the subject matter of this Agreement except as herein specified.

6.4

This Agreement will be governed by and construed in accordance with the laws of the State of NEVADA. The parties hereby attorn to the jurisdiction of the courts CLARK County, NEVADA with respect to any legal proceedings arising from this Agreement.

6.5

The representations and warranties of the parties contained in this Agreement shall survive the closing of the purchase and sale of the Purchased Shares and shall continue in full force and effect for a period of one year.

6.7

This Agreement may be executed in several counterparts, each of which will be deemed to be an original and all of which will together constitute one and the same instrument.

6.8

Delivery of an executed copy of this Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy 

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will be deemed to be execution and delivery of this Agreement as of the date set forth on page one of this Agreement.

Each of the parties hereto has executed this Agreement to be effective as of the day and year first above written.

SELLER:

/s/ Serge Wilson

SERGE WILSON

PURCHASER

GENERATION ENERGY, INC.

By:

/s/ Lisa McKelvie____________

Its:

President__________________

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