Pledge Agreement



 Exhibit 10.7 
 Execution Version 
 PLEDGE AGREEMENT 

THIS PLEDGE AGREEMENT (this “Agreement”) is made as of August 31, 2012 by Par Piceance Energy Equity
LLC, a Delaware limited liability company (herein called “Pledgor”), in favor of Jefferies Finance LLC, as Administrative Agent for the ratable benefit of the Secured Parties (in such capacity, herein called
“Pledgee”). 
 W I T N E S S E T H: 

WHEREAS, the Pledgor, the Pledgee, and the Lenders party thereto from time to time, are parties to that certain Delayed Draw Term Credit
Agreement (as may be amended from time to time, the “Credit Agreement”) dated as of August 31, 2012, pursuant to which the Lenders have agreed to make loans and other extensions of credit to the Borrower for the purposes
set forth therein; and 
 WHEREAS, as a condition precedent to the Credit Agreement, Pledgor is required to execute and deliver
this Agreement; and 
 WHEREAS, the board of directors of the sole member of Pledgor has determined that Pledgor’s
execution, delivery and performance of this Agreement may reasonably be expected to benefit Pledgor, directly or indirectly, and are in the best interests of Pledgor. 
 NOW, THEREFORE, in consideration of the premises and in order to induce the Secured Parties to extend credit under the Credit Agreement, Pledgor hereby agrees with Pledgee as follows: 

ARTICLE I 

DEFINITIONS AND REFERENCES 
 Section 1.1 General Definitions. As used herein, the terms defined above shall have the meanings indicated above, and the following terms shall have the following meanings: 

“Collateral” means all property of whatever type, in which Pledgee at any time has a security interest pursuant
to Section 2.1 hereof. 
 “Other Liable Party” means any Person, other than Pledgor, but
including the Borrower and each other Credit Party, who may now or may at any time hereafter be primarily or secondarily liable for any of the Obligations or who may now or may at any time hereafter have granted to Pledgee or the Secured Parties a
Lien upon any property as security for the Obligations. 
 “Pledged Equity” has the meaning given it in
Section 2.1(a) hereof. 
 Section 1.2 Other Definitions. Reference is hereby made to the Credit
Agreement for a statement of the terms thereof. All capitalized terms used in this Agreement which are defined in the Credit Agreement and not otherwise defined herein shall have the same meanings herein as set forth therein. All terms used in this
Agreement which are defined in the UCC and not otherwise defined herein or in the Credit Agreement shall have the same meanings herein as set forth in the UCC, except where the context otherwise requires. 

  
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 Section 1.3 Amendment of Defined Instruments. Unless the context
otherwise requires or unless otherwise provided herein, references in this Agreement to a particular agreement, instrument or document also refer to and include all renewals, extensions, amendments, modifications, supplements or restatements of any
such agreement, instrument or document, provided that nothing contained in this Section 1.3 shall be construed to authorize any Person to execute or enter into any such renewal, extension, amendment, modification, supplement or
restatement. 
 Section 1.4 References and Titles. All references in this Agreement to Articles, Sections,
subsections, and other subdivisions refer to the Articles, Sections, subsections and other subdivisions of this Agreement unless expressly provided otherwise. Titles appearing at the beginning of any subdivision are for convenience only and do not
constitute any part of any such subdivision and shall be disregarded in construing the language contained in this Agreement. The words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder” and
words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. The phrases “this Section” and “this subsection” and similar phrases refer only to the Sections or
subsections hereof in which the phrase occurs. The word “or” is not exclusive, and the word “including” (in all of its forms) means “including without limitation”. Pronouns in masculine, feminine and neuter gender shall
be construed to include any other gender, and words in the singular form shall be construed to include the plural and vice versa unless the context otherwise requires. 
 ARTICLE II 
 SECURITY INTEREST 

Section 2.1 Grant of Security Interest. As collateral security for all of the payment and performance in full when due
of all of the Obligations, Pledgor hereby pledges and assigns to Pledgee and grants to Pledgee a continuing security interest with at least the priority required by Section 3.1(d)(iv) hereof for the benefit of the Secured Parties in and
to all of the following rights, interests and property: 
 (a) all of the issued and outstanding JV Interests now owned or
hereafter acquired by Pledgor (all of the foregoing being herein sometimes called the “Pledged Equity”); 
 (b) any and all proceeds or other sums arising from or by virtue of, and all dividends and distributions (cash or otherwise) payable and/or distributable with respect to, all or any of the Pledged Equity;
and 
 (c) all cash, securities, dividends, warrants, rights, options, instruments and other property at any time and from time
to time receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Equity and any other property substituted or exchanged therefor. 

  
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 Section 2.2 Obligations Secured. The security interest created hereby
in the Collateral constitutes continuing collateral security for the payment and performance in full of all of the Obligations. 

ARTICLE III 

REPRESENTATIONS, WARRANTIES AND COVENANTS 
 Section 3.1 Representations and Warranties. Pledgor represents and warrants as follows: 
 (a) Ownership and Liens. Pledgor has good and marketable title to the Collateral free and clear of all Liens, encumbrances or adverse claims, except for the security interest created by this
Agreement and except as provided in Section 3.1(d)(iv). No effective financing statement or other instrument similar in effect covering all or any part of the Collateral is on file in any recording office except such as have been filed
in favor of Pledgee relating to this Agreement or the other Loan Documents or other Permitted Liens. 
 (b) No Conflicts
or Consents. Neither the ownership or the intended use of the Collateral by Pledgor, nor the grant of the security interest by Pledgor to Pledgee herein, nor the exercise by Pledgee of its rights or remedies hereunder, will (i) conflict
with any provision of (A) any domestic or foreign law, statute, rule or regulation, (B) the certificate of formation, articles of organization, limited liability company agreement, or other organizational document of the JV Company, or
(C) any agreement, judgment, license, order or permit applicable to or binding upon Pledgor; or (ii) result in or require the creation of any Lien, charge or encumbrance upon any assets or properties of Pledgor except as expressly
contemplated in the Loan Documents. Except as expressly contemplated in the Loan Documents, no consent, approval, authorization or order of, and no notice to or filing with, any court, Governmental Authority, the JV Company, or third party is
required in connection with the grant by Pledgor of the security interest herein, or, except as may be required under the UCC, the exercise by Pledgee of its rights and remedies hereunder. 

(c) Security Interest. Pledgor has and will have at all times full right, power and authority to grant a security interest
in the Collateral to Pledgee in the manner provided herein, free and clear of any Lien, adverse claim, or encumbrance (except as provided in Section 3.1(d)(iv)). This Agreement creates a valid and binding security interest in favor of
Pledgee in the Collateral securing the Obligations. The taking possession by Pledgee or by the JV Company Credit Agreement Agent (as agent for perfection for the Pledgee under the Intercreditor Agreement), for the ratable benefit of the Secured
Parties of all certificates, instruments and cash constituting Collateral from time to time, together with appropriate stock powers, and the filing of the financing statements delivered concurrently herewith by Pledgor to Pledgee will perfect, and
establish the priority required by Section 3.1(d)(iv) of, Pledgee’s security interest hereunder in the Collateral securing the Obligations. No further or subsequent filing, recording, registration, other public notice or other
action is necessary or desirable to perfect or otherwise continue, preserve or protect such security interest except for continuation statements or filings as contemplated in Section 3.3(b) or otherwise by the UCC. 

  
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 (d) Pledged Equity. (i) Pledgor is the legal and beneficial owner of
the Pledged Equity; (ii) the Pledged Equity is duly authorized and issued, fully paid and non-assessable (as applicable), and all documentary, stamp or other Taxes or fees owing in connection with the issuance, transfer and/or pledge thereof
hereunder have been paid; (iii) no dispute, right of setoff, counterclaim or defense exists with respect to all or any part of the Pledged Equity; (iv) the Pledged Equity is free and clear of all Liens, options, warrants, puts, calls or
other rights of third Persons, and restrictions, other than (A) those Liens arising under this Agreement or any other of the Loan Documents, (B) Liens for Taxes or assessments not yet due or not yet delinquent, or, if delinquent, that are
being contested in good faith in the normal course of business by appropriate action, (C) restrictions on transferability imposed by applicable state and federal securities Laws and (D) Permitted Liens; (v) Pledgor has full right and
authority to pledge the Pledged Equity for the purposes and upon the terms set out herein; (vi) certificates (as applicable) representing the Pledged Equity have been delivered to Pledgee or, prior to the payment in full of the JV Company
Credit Facility Obligations, to the JV Company Credit Facility Agent (as agent for perfection for the Pledgee under the Intercreditor Agreement), together with a duly executed blank stock power for each certificate; and (vii) the JV Company has
not issued, and there are not outstanding, any options, warrants or other rights to acquire Equity Interests of the JV Company. 

Section 3.2 Affirmative Covenants. Unless Pledgee shall otherwise consent in writing, Pledgor will at all times comply
with the covenants contained in this Section 3.2 from the date hereof and so long as any part of the Obligations remain outstanding. 
 (a) Ownership and Liens. Pledgor will maintain good and marketable title to all Collateral free and clear of all Liens, encumbrances or adverse claims, except for (i) the security
interest created by this Agreement and (ii) those provided in Section 3.1(d)(iv). Pledgor will cause to be terminated any financing statement or other registration with respect to the Collateral, except such as may exist or as may
have been filed in favor of Pledgee or the holder of a Permitted Lien. Pledgor will defend Pledgee’s security interest in and to the Collateral against the claims of any Person. 

(b) Further Assurances. Pledgor will at any time and from time to time promptly execute and deliver all further instruments
and documents and take all further action that may be necessary or desirable or that Pledgee may request in order (i) to perfect and protect the security interest created or purported to be created hereby and the priority required by
Section 3.1(d)(iv) of such security interest; (ii) to enable Pledgee to exercise and enforce its rights and remedies hereunder in respect of the Collateral; or (iii) to otherwise effect the purposes of this Agreement,
including: (A) executing and filing such financing or continuation statements, or amendments thereto, as may be necessary or desirable or that Pledgee may request in order to perfect and preserve the security interest created or purported to be
created hereby, and (B) furnishing to Pledgee from time to time statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as Pledgee may reasonably request, all in
reasonable detail. 
 (c) Delivery of Pledged Equity. All certificates, instruments and writings evidencing the
Pledged Equity shall be delivered to Pledgee or, prior to the payment in full of the JV Company Credit Facility Obligations, to the JV Company Credit Facility Agent (as agent for 

  
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perfection for the Pledgee), on or prior to the execution and delivery of this Agreement. All certificates, instruments and writings hereafter evidencing or constituting Pledged Equity shall be
delivered to Pledgee or, prior to the payment in full of the JV Company Credit Facility Obligations, to the JV Company Credit Facility Agent (as agent for perfection for the Pledgee), promptly upon the receipt thereof by or on behalf of Pledgor. All
Pledged Equity shall be held by or on behalf of Pledgee pursuant hereto and shall be delivered in the same manner and with the same effect as described in Section 2.1 hereof and Section 3.1 hereof. Upon delivery, such Equity
shall thereupon constitute “Pledged Equity” and shall be subject to the Liens herein created, for the purposes and upon the terms and conditions set forth in this Agreement and the other Loan Documents. 

(d) Proceeds of Pledged Equity. If Pledgor shall receive, by virtue of its being or having been an owner of any Pledged
Equity, any (i) Equity Interests (including any certificate representing any Equity Interest or distribution in connection with any increase or reduction of capital, reorganization, reclassification, merger, consolidation, sale of assets, or
spinoff or split-off), promissory note or other instrument or writing; (ii) option or right, whether as an addition to, substitution for, or in exchange for, any Pledged Equity or otherwise; (iii) dividends or other distributions payable
in cash (except such dividends or other distributions permitted to be retained by Pledgor pursuant to Section 4.7 hereof) or in securities or other property; or (iv) dividends or other distributions in connection with (A) a
partial or total liquidation or dissolution or (B) a reduction of capital, capital surplus or paid-in surplus, Pledgor shall receive the same in trust for the benefit of Pledgee, shall segregate it from Pledgor’s other property, and shall
promptly deliver it to Pledgee or, prior to the payment in full of the JV Company Credit Facility Obligations, to the JV Company Credit Facility Agent (as agent for perfection for the Pledgee under the Intercreditor Agreement), in the exact form
received, with any necessary endorsement or appropriate stock powers duly executed in blank, to be held by or, prior to the payment in full of the JV Company Credit Facility Obligations, to the JV Company Credit Facility Agent (as agent for
perfection for the Pledgee under the Intercreditor Agreement), Pledgee as Collateral. 
 (e) Status of Pledged
Equity. The certificates evidencing the Pledged Equity (as applicable) shall at all times be valid and genuine and shall not be altered. The Pledged Equity at all times shall be duly authorized, validly issued, fully paid, and non-assessable
(as applicable), shall not be issued in violation of the pre-emptive rights of any Person or of any agreement by which Pledgor or the JV Company is bound, and, except for the bylaws or other organizational documents of the JV Company, shall not be
subject to any restrictions or conditions with respect to the transfer, voting or capital of any Pledged Equity. 

Section 3.3 Negative Covenants. Unless Pledgee shall otherwise consent in writing, Pledgor will at all times comply
with the covenants contained in this Section 3.3 from the date hereof and so long as any part of the Obligations remain outstanding. 
 (a) Transfer or Encumbrance. Pledgor will not sell, assign (by operation of law or otherwise), transfer, exchange, lease or otherwise dispose of any of the Collateral, nor will Pledgor grant
a Lien upon or execute, file or record any financing statement or other registration with respect to the Collateral (other than the security interests created by this Agreement or in connection with Permitted Liens), nor will Pledgor allow any such
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other registration to exist or deliver actual or constructive possession of the Collateral to any other Person other than Liens in favor of Pledgee and those provided in
Section 3.1(d)(iv). Notwithstanding the foregoing, so long as no Default or Event of Default exists, Pledgor may transfer, exchange or otherwise dispose of Pledged Equity in connection with a merger or consolidation permitted by
Section 9.4 of the JV Credit Agreement. Upon any such merger or consolidation, Pledgee will, upon Pledgor’s request and at Pledgor’s expense, promptly (i) release its security interest in the Collateral that is being transferred,
exchanged or disposed of in connection with such merger or consolidation, (ii) return to Pledgor such of the Collateral that is being transferred, exchanged or disposed of in connection with such merger or consolidation, and (iii) execute
and deliver to Pledgor such documents as Pledgor may reasonably request to evidence Pledgee’s release of its security interest in such Collateral. 
 (b) Financing Statement Filings. Pledgor recognizes that financing statements pertaining to the Collateral have been or may be filed in the jurisdiction of Pledgor’s organization, where
Pledgor maintains any Collateral, has its records concerning any Collateral, has its chief executive office or chief place of business, or has its principal place of residence. Without limitation of any other covenant herein, Pledgor will not cause
or permit any change to be made in its name, identity, corporate structure or jurisdiction of organization, or any change to be made to a jurisdiction in (i) the location of any records concerning any Collateral, or (ii) the location of
its chief executive office, chief place of business or principal place of residence, unless Pledgor shall have notified Pledgee of such change at least fifteen (15) days prior to the effective date of such change, and shall have first taken all
action reasonably required by Pledgee for the purpose of further perfecting or protecting the security interest in favor of Pledgee in the Collateral. In any notice furnished pursuant to this subsection, Pledgor will expressly state that the notice
is required by this Agreement and contains facts that may require additional filings of financing statements or other notices for the purposes of continuing perfection of Pledgee’s security interest in the Collateral. 

(c) Impairment of Security Interest. Pledgor will not take or fail to take any action which would in any manner impair the
enforceability of Pledgee’s security interest in any Collateral. 
 (d) Restrictions on Pledged Equity.
Except for the bylaws or other charter or organizational documents of the JV Company, Pledgor will not enter into any agreement creating, or otherwise permit to exist, any restriction or condition upon the transfer, voting or control of any Pledged
Equity. Pledgor will not vote to enable, or take any other action to permit, the JV Company to issue any Equity Interests of any nature or to issue any other securities convertible into or granting the right to purchase or exchange for any Equity
Interests of any nature of the JV Company unless such Equity Interests or securities shall have been pledged to the Pledgee to secure the Obligations pursuant to the terms hereof to the extent owned by the Pledgor. 

  
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 ARTICLE IV 
 REMEDIES, POWERS AND AUTHORIZATIONS 
 Section 4.1
Provisions Concerning the Collateral. 
 (a) Additional Financing Statement Filings. Pledgor hereby
authorizes Pledgee to file, without the signature of Pledgor where permitted by law, one (1) or more financing or continuation statements, and amendments thereto, relating to the Collateral. 

(b) Power of Attorney. Pledgor hereby irrevocably appoints Pledgee as Pledgor’s attorney-in-fact and proxy, with full
authority in the place and stead of Pledgor and in the name of Pledgor or otherwise, from time to time if an Event of Default shall have occurred and be continuing, in Pledgee’s discretion but subject to the Subordination Agreement, to take any
action (except for the exercise of any voting rights pertaining to the Pledged Equity or any part thereof) and to execute any instrument, certificate or notice which Pledgee may deem necessary or advisable to accomplish the purposes of this
Agreement including: (i) to request or instruct Pledgor or the JV Company (and each registrar, transfer agent, or similar Person acting on behalf of Pledgor or the JV Company) to register the Pledged Equity or transfer the Collateral to
Pledgee; (ii) to otherwise give notification to Pledgor, the JV Company, registrar, transfer agent, financial intermediary, or other Person of Pledgee’s security interests hereunder; (iii) to ask, demand, collect, sue for, recover,
compound, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral; (iv) to receive, indorse and collect any drafts or other instruments, documents and chattel paper; (v) to
file any claims or take any action or institute any proceedings which Pledgee may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce the rights of Pledgee with respect to any of the Collateral, and
(vi) to act as its proxy and attorney-in-fact with respect to the Pledged Equity, including, subject to Section 4.7 hereof, the right to vote such Pledged Equity, with full power of substitution to do so, and to exercise all other rights,
powers, privileges, and remedies to which a holder of such Pledged Equity would be entitled, which proxy shall be effective automatically, and without the necessity of any action (including any transfer of any such Pledged Equity on the record books
of the JV Company) by any person, in each case, only upon the occurrence and during the continuance of an Event of Default. 

(c) Performance by Pledgee. If Pledgor fails to perform any agreement or obligation contained herein, Pledgee may, at the
direction of the Requisite Lenders, itself perform, or cause performance of, such agreement or obligation, and the expenses of Pledgee incurred in connection therewith shall be payable by Pledgor under Section 4.4 hereof. 

(d) Collection Rights. Pledgee shall have the right at any time, if an Event of Default shall have occurred and be
continuing, subject to the terms of the Subordination Agreement (with respect to the Collateral Pledged hereunder) to notify any or all obligors (including any and all Credit Parties) under any accounts or general intangibles included among the
Collateral of the assignment thereof to Pledgee and to direct such obligors to make payment of all amounts due or to become due to Pledgor thereunder directly to Pledgee and, upon such notification and at the expense of Pledgor or the JV Company and
to the extent permitted by law, to enforce collection thereof and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as Pledgor could have done. After Pledgor receives


  
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notice that Pledgee has given any notice referred to above in this subsection, (i) all amounts and proceeds (including instruments and writings) received by Pledgor in respect of such
accounts or general intangibles shall be received in trust for the benefit of Pledgee hereunder, shall be segregated from other funds of Pledgor and shall be forthwith paid over to Pledgee or, prior to the payment in full of the JV Company Credit
Facility Obligations, to the JV Company Credit Facility Agent (as agent for perfection for the Pledgee) in the same form as so received (with any necessary indorsement) to be held as cash collateral and (A) released to Pledgor upon the remedy
of all Events of Default, or (B) if any Event of Default shall have occurred and be continuing, applied as specified in Section 4.3 hereof; and (ii) Pledgor will not adjust, settle or compromise the amount or payment of any
such account or general intangible or release wholly or partly any account debtor or obligor thereof (including the JV Company) or allow any credit or discount thereon. 
 Section 4.2 Event of Default Remedies. If an Event of Default shall have occurred and be continuing, Pledgee may from time to time in its discretion and subject to the Subordination
Agreement, without limitation and without notice except as expressly provided below: 
 (a) exercise in respect of the
Collateral, in addition to other rights and remedies provided for herein, under the other Loan Documents or otherwise available to it, all the rights and remedies of a secured party on default under the UCC (whether or not the UCC applies to the
affected Collateral); 
 (b) require Pledgor to, and Pledgor hereby agrees that it will upon request of Pledgee forthwith,
assemble all or part of the Collateral as directed by Pledgee and make it available to Pledgee at a place to be designated by Pledgee which is reasonably convenient to both parties; 

(c) reduce its claim to judgment against Pledgor or foreclose or otherwise enforce, in whole or in part, the security interest created
hereby by any available judicial procedure; 
 (d) dispose of, at its office, on the premises of Pledgor or elsewhere, all or
any part of the Collateral, as a unit or in parcels, by public or private proceedings, and by way of one or more contracts (it being agreed that the sale of any part of the Collateral shall not exhaust Pledgee’s power of sale, but sales may be
made from time to time, and at any time, until all of the Collateral has been sold or until the Obligations have been paid and performed in full), and at any such sale it shall not be necessary to exhibit any of the Collateral; 

(e) buy (or allow any Secured Party to buy) the Collateral, or any part thereof, at any public sale; 

(f) buy (or allow any Secured Party to buy) the Collateral, or any part thereof, at any private sale if the Collateral is of a type
customarily sold in a recognized market or is of a type which is the subject of widely distributed standard price quotations; and 
 (g) apply by appropriate judicial proceedings for appointment of a receiver for the Collateral, or any part thereof, and Pledgor hereby consents to any such appointment. 

  
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 Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten
(10) days’ notice to Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. Pledgee shall not be obligated to make any sale of Collateral regardless
of notice of sale having been given. Pledgee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so
adjourned. 
 Section 4.3 Application of Proceeds. If any Event of Default shall have occurred and be
continuing, Pledgee may in its discretion and subject to the Subordination Agreement apply any cash held by Pledgee as Collateral, and any cash proceeds received by Pledgee in respect of any sale of, collection from, or other realization upon all or
any part of the Collateral, in the order and manner contemplated by Section 7.6 of the Credit Agreement. 

Section 4.4 Release and Expenses. In addition to, and not in qualification of, any similar obligations under other
Loan Documents: 
 (a) Pledgor agrees to pay or reimburse the Pledgee or any Lender for all its reasonable out-of-pocket costs
and expenses incurred in enforcing or preserving any rights under this Agreement, including, without limitation, the reasonable fees and disbursements of counsel to the Pledgee to the same extent the Borrower would be required to do so pursuant to
Section 10.4 of the Credit Agreement. 
 (b) Pledgor agrees to pay, and to indemnify and save the Pledgee and the other
Secured Parties harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable with respect to any of the Collateral or
in connection with any of the transactions contemplated by this Agreement 
 (c) Pledgor agrees to pay, and to indemnify and
save the Pledgee and the other Secured Parties harmless from, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the
execution, delivery, enforcement, performance and administration of this Agreement to the same extent the Borrower would be required to do so pursuant to Section 10.7 of the Credit Agreement. 

Section 4.5 Non-Judicial Remedies. In granting to Pledgee the power to enforce its rights hereunder without prior
judicial process or judicial hearing, Pledgor expressly waives, renounces and knowingly relinquishes any legal right which might otherwise require Pledgee to enforce its rights by judicial process. In so providing for non-judicial remedies, Pledgor
recognizes and concedes that such remedies are consistent with the usage of trade, are responsive to commercial necessity, and are the result of a bargain at arm’s length. Nothing herein is intended to prevent Pledgee or Pledgor from resorting
to judicial process at either party’s option. 
 Section 4.6 Other Recourse. Pledgor waives any right to
require Pledgee or the other Secured Parties to proceed against any other Person, exhaust any Collateral or other security for the Obligations, or to have any Other Liable Party joined with Pledgor in any suit arising out of


  
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the Obligations or this Agreement, or pursue any other remedy in Pledgee’s power. Pledgor further waives any and all notice of acceptance of this Agreement and of the creation, modification,
rearrangement, renewal or extension for any period of any of the Obligations from time to time. Pledgor further waives any defense arising by reason of any disability or other defense of any Other Liable Party or by reason of the cessation from any
cause whatsoever of the liability of any Other Liable Party. Until all of the Obligations shall have been paid in full, Pledgor shall have no right to subrogation and Pledgor waives the right to enforce any remedy which Pledgee or any other Secured
Party has or may hereafter have against any Other Liable Party, and waives any benefit of and any right to participate in any other security whatsoever now or hereafter held by Pledgee. Pledgor authorizes Pledgee and each other Secured Party,
without notice or demand and without any reservation of rights against Pledgor and without affecting Pledgor’s liability hereunder or on the Obligations, from time to time to (a) take or hold any other property of any type from any other
Person as security for the Obligations, and exchange, enforce, waive and release any or all of such other property; (b) renew, extend for any period, accelerate, modify, compromise, settle or release any of the obligations of any Other Liable
Party in respect to any or all of the Obligations or other security for the Obligations; (c) waive, enforce, modify, amend or supplement any of the provisions of any Loan Document with any Person other than Pledgor; and (d) release or
substitute any Other Liable Party. 
 Section 4.7 Voting Rights, Dividends Etc. in Respect of Pledged Equity.

 (a) So long as no Event of Default shall have occurred and be continuing and the JV Company is not otherwise prohibited from
making such dividends, distributions or payments pursuant to the JV Credit Agreement, including, without limitation, any “Permitted Tax Distributions” and “Economic Interest Agreement Payments” (each as defined in the JV Credit
Agreement), Pledgor may receive and retain any and all dividends, distributions or interest paid in respect of the Pledged Equity; provided, however, that any and all dividends, distributions and interest paid or payable other than in
cash in respect of, and instruments and other property received, receivable or otherwise distributed in respect of or in exchange for, any Pledged Equity, shall be, and shall forthwith be delivered to Pledgee (or to the JV Company Credit Facility
Agent, as bailee for perfection under the Intercreditor Agreement) to hold as, Pledged Equity and shall, if received by Pledgor, be received in trust for the benefit of Pledgee, be segregated from the other property or funds of Pledgor, and be
forthwith delivered to Pledgee in the exact form received with any necessary indorsement or appropriate stock powers duly executed in blank, to be held by Pledgee as Collateral. 

(b) If an Event of Default shall have occurred and be continuing, subject to the terms of the Intercreditor Agreement: 

(i) all rights of Pledgor to receive and retain the dividends, distributions and interest payments which Pledgor would
otherwise be authorized to receive and retain pursuant to subsection (a) of this Section 4.7 shall automatically cease, and all such rights shall thereupon become vested in Pledgee which shall thereupon have the right to receive and
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 (ii) without limiting the generality of the foregoing, concurrently with
notice to the Pledgor of its intent to exercise such rights, any or all of the Pledged Equity shall be registered in the name of the Pledgee or its nominee, and the Pledgee or its nominee may thereafter exercise (x) all voting, corporate and
other rights pertaining to such Pledged Equity at any meeting of shareholders of the JV Company or otherwise and (y) any and all rights of conversion, exchange and subscription and any other rights, privileges or options pertaining to such
Pledged Equity, as if it were the absolute owner thereof (including, without limitation, the right to exchange at its discretion any and all of the Pledged Equity upon the merger, consolidation, reorganization, recapitalization or other fundamental
change in the corporate or other organizational structure of the JV Company, or upon the exercise by the Pledgor or the Pledgee of any right, privilege or option pertaining to such Pledged Equity, and in connection therewith, the right to deposit
and deliver any and all of the Pledged Equity with any committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as the Pledgee may determine), all without liability except to account for property
actually received by it, but the Pledgee shall have no duty to the Pledgor to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing; and 

(iii) all dividends and interest payments which are received by Pledgor contrary to the provisions of
subsection (b)(i) of this Section 4.7 shall be received in trust for the benefit of Pledgee, shall be segregated from other funds of Pledgor, and shall be forthwith paid over to Pledgee as Pledged Equity in the exact form received,
to be held by Pledgee as Collateral. 
 Section 4.8 Registration Rights; Private Sale of Pledged Equity;
Notice. 
 (a) If the Pledgee shall determine to exercise its right to sell any or all of the Pledged Equity pursuant to
this Agreement, and if in the opinion of the Pledgee it is necessary or advisable to have the Pledged Equity, or that portion thereof to be sold, registered under the provisions of the Securities Act, Pledgor will cause the JV Company to
(i) execute and deliver, and cause its directors and officers to execute and deliver, all such instruments and documents, and do or cause to be done all such other acts as may be, in the opinion of the Pledgee, necessary or advisable to
register the Pledged Equity, or that portion thereof to be sold, under the provisions of the Securities Act, (ii) use its best efforts to cause the registration statement relating thereto to become effective and to remain effective for a period
of one (1) year from the date of the first public offering of the Pledged Equity, or that portion thereof to be sold, and (iii) make all amendments thereto and/or to the related prospectus which, in the opinion of the Pledgee, are
necessary or advisable, all in conformity with the requirements of the Securities Act and the rules and regulations of the Securities and Exchange Commission applicable thereto. The Pledgor agrees to cause the JV Company to comply with the
provisions of the securities or “Blue Sky” laws of any and all jurisdictions which the Pledgee shall designate and to make available to its security holders, as soon as practicable, an earnings statement (which need not be audited) which
will satisfy the provisions of Section 11(a) of the Securities Act. 
 (b) Pledgor recognizes that Pledgee may deem it
impracticable to effect a public sale of all or any part of the Pledged Equity and that Pledgee may, therefore, determine to 

  
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make one or more private sales of any such securities to a restricted group of purchasers who will be obligated to agree, among other things, to acquire such securities for their own account, for
investment and not with a view to the distribution or resale thereof. Pledgor acknowledges that any such private sale may be at prices and on terms less favorable to the seller than the prices and other terms which might have been obtained at a
public sale and, notwithstanding the foregoing, agrees that such private sales shall be deemed to have been made in a commercially reasonable manner and that Pledgee shall have no obligation to delay the sale of any such securities for the period of
time necessary to permit Pledgor or the JV Company to register such securities (with no obligation of either Pledgor or any Subsidiary to accomplish such registration) for public sale under the Securities Act. 

(c) To the extent permitted under applicable law, the Pledgor hereby waives notice of the time and place of any public sale or the time
after which any private sale or other disposition of all or any part of the Collateral may be made. If any notice of a proposed sale or other disposition of Collateral shall be required by law, which is not waived hereunder, such notice shall be
deemed reasonable and proper in every case if given at least ten (10) days prior (or such shorter period as may be commercially reasonable) to (i) the date of any such public sale or (ii) the time after which any such private sale or
other disposition may be made. 
 Section 4.9 Limitation on Rights and Waivers. All rights, powers and
remedies herein conferred shall be exercisable by Pledgee only to the extent not prohibited by applicable law; and all waivers and relinquishments of rights and similar matters shall only be effective to the extent such waivers or relinquishments
are not prohibited by applicable law. 
 ARTICLE V 
 MISCELLANEOUS 
 Section 5.1 Notices. All notices,
requests and demands to or upon the Pledgee or any Grantor hereunder shall be effected in the manner provided for in Section 10.2 of the Credit Agreement. 
 Section 5.2 Amendments. None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except in accordance with Section 10.1 of the
Credit Agreement. 
 Section 5.3 Preservation of Rights. Neither the Pledgee nor any other Secured Party
shall by any act (except by a written instrument pursuant to Section 5.2 hereof), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No
failure to exercise, nor any delay in exercising, on the part of the Pledgee or any other Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Pledgee or any other Secured Party of any right or remedy hereunder on any one occasion shall not be construed as
a bar to any right or remedy which the Pledgee or such other Secured Party would otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any
other rights or remedies provided by law. 

  
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 Section 5.4 Unenforceability. Any provision of this Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or invalidity without invalidating the remaining portions hereof or thereof and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

Section 5.5 Survival of Agreements. All representations and warranties of Pledgor herein, and all covenants and
agreements herein shall survive the execution and delivery of this Agreement, the execution and delivery of any other Loan Documents and the creation of the Obligations. 
 Section 5.6 Other Liable Party. Neither this Agreement nor the exercise by Pledgee or any other Secured Party or the failure of Pledgee or any other Secured Party to exercise any right,
power or remedy conferred herein or by law shall be construed as relieving any Other Liable Party from liability on the Obligations or any deficiency thereon. This Agreement shall continue irrespective of the fact that the liability of any Other
Liable Party may have ceased or irrespective of the validity or enforceability of any other Loan Document to which Pledgor or any Other Liable Party may be a party, and notwithstanding the reorganization, death, incapacity or bankruptcy of any Other
Liable Party, and notwithstanding the reorganization or bankruptcy or other event or proceeding affecting any Other Liable Party. 
 Section 5.7 Binding Effect and Assignment. This Agreement shall be binding upon the successors and assigns of each Grantor and shall inure to the benefit of the Pledgee and the other
Secured Parties and their successors and assigns; provided that no Grantor may assign, transfer or delegate any of its rights or obligations under this Agreement without the prior written consent of the Pledgee. 

Section 5.8 Termination. It is contemplated by the parties hereto that there may be times when no Obligations are
outstanding, but notwithstanding such occurrences, this Agreement shall remain valid and shall be in full force and effect as to subsequent outstanding Obligations for so long as the Credit Agreement shall remain effective. Collateral shall be
released from the Lien created by this Agreement to the extent provided in Section 8.10(c) of the Credit Agreement. 

Section 5.9 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED
IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. 
 Section 5.10 Counterparts. This
Agreement may be separately executed in any number of counterparts, all of which when so executed shall be deemed to constitute one and the same Agreement. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or
other electronic transmission (e.g., .pdf) shall be effective as delivery of a manually executed counterpart of this Agreement. 

  
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 Section 5.11 Loan Document. This Agreement is a “Loan
Document”, as defined in the Credit Agreement, and, except as expressly provided herein to the contrary, this Agreement is subject to all provisions of the Credit Agreement governing the Loan Documents. 

Section 5.12 Specific Performance of Certain Covenants. Pledgor acknowledges and agrees that a breach of any of the
covenants contained in Sections 3.2, 3.3, 4.7 and 4.8 hereof will cause irreparable injury to the Pledgee and the other Secured Parties, that the Pledgee and the other Secured Parties have no adequate remedy at law in respect of such breaches and
therefore agrees, without limiting the right of the Pledgee or the Secured Parties to seek and obtain specific performance of other obligations of Pledgor contained in this Agreement, that the covenants of the Pledgor contained in the Sections
referred to in this Section 5.12 shall, to the extent permitted under applicable law, be specifically enforceable against the Pledgor. 
 Section 5.13 WAIVER OF JURY TRIAL. EACH OF THE PLEDGOR AND THE PLEDGEE HEREBY ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED BY AND HAS CONSULTED WITH COUNSEL OF ITS CHOICE, AND HEREBY
KNOWINGLY, VOLUNTARILY, INTENTIONALLY, AND IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN RESPECT OF ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENTOR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY) EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

Section 5.14 Submission To Jurisdiction; Waivers. Pledgor hereby irrevocably and unconditionally: 

(a) submits for itself and its property in any legal action or proceeding relating to this Agreement, or for recognition and enforcement
of any judgment in respect thereof, to the non-exclusive general jurisdiction of the Courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof;

 (b) consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or
hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

(c) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to the Pledgor at its address referred to in Section 5.1 hereof; 

  
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 (d) agrees that nothing herein shall affect the right to effect service of process in
any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and 
 (e) waives, to the maximum
extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages. 

Section 5.15 Reinstatement. This Agreement shall remain in full force and effect and continue to be effective should
any petition be filed by or against the Pledgor for liquidation or reorganization, should the Pledgor become insolvent or make an assignment for the benefit of any creditor or creditors, should a receiver or trustee be appointed for all or any
significant part of any the Pledgor’s assets, or any similar proceeding is initiated or undertaken and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Obligations, or any part
thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all
as though such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned. 
 Section 5.16 Intercreditor Agreement. The security
interests created by this Agreement are junior and subordinate to the security interests on any Collateral created by any pledge or security agreement or similar instrument now or hereafter granted to the JV Company Credit Facility Agent, and its
successors and assigns, in such Collateral, in accordance with the provisions of the Intercreditor Agreement dated as of August 31, 2012 among JPMorgan Chase Bank, N.A., as Administrative Agent, the Pledgee, JV Holding Sub and Borrower, as
amended from time to time. Accordingly, notwithstanding any other provision of this Agreement, all covenants, representations, warranties, remedies and other provisions of this Agreement are subject to the provisions of the Intercreditor Agreement
and, to the extent provided therein, the JV Company Credit Facility Documents, and including without limitation any such provisions thereunder pertaining to any pledges, liens or security interests in the Collateral or any remedies or enforcement
rights pertaining to such Collateral. 
 [Signature Pages to Follow] 

  
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 IN WITNESS WHEREOF, Pledgor has executed and delivered this Agreement, as of the date first
above written. 
  

			
	PAR PICEANCE ENERGY EQUITY LLC
		
	By:	 	 /s/ John T. Young, Jr.

	Name:	 	John T. Young, Jr.
	Title:	 	Chief Executive Officer



  
 [SIGNATURE
PAGE TO PAR PICEANCE ENERGY EQUITY LLC PLEDGE AGREEMENT] 








 The JV Company hereby acknowledges and consents to the pledge of the Collateral and hereby
agrees to observe and perform each and every provision of this Agreement applicable to the JV Company. 
  

			
	PICEANCE ENERGY, LLC
		
	By:	 	 /s/ Bruce L. Payne

		 	Bruce L. Payne,
		 	President and
		 	Chief Financial Officer



  
 [SIGNATURE
PAGE TO PAR PICEANCE ENERGY EQUITY LLC PLEDGE AGREEMENT] 









			
	JEFFERIES FINANCE LLC
	as Administrative Agent
		
	By:	 	 /s/ E. Joseph Hess

	Name:	 	E. Joseph Hess
	Title:	 	Managing Director


  
 [SIGNATURE
PAGE TO PAR PICEANCE ENERGY EQUITY LLC PLEDGE AGREEMENT]