Document:

exv10w23

Exhibit 10.23

MOLYCORP, INC.

NONEMPLOYEE DIRECTOR DEFERRED COMPENSATION PLAN

EFFECTIVE JANUARY 13, 2011

1. Purpose and Adoption

     (a) Adoption. By resolution of the Board of Directors of Molycorp, Inc., a Delaware
corporation (the “Company”), the Company has adopted this Molycorp, Inc. Nonemployee Director
Deferred Compensation Plan (the “Plan”), effective January 13, 2011 (the “Effective Date”).

     (b) Purpose. The purpose of the Plan is to attract and retain highly qualified
individuals to serve as Nonemployee Directors of the Company and to relate Nonemployee Directors’
interests more closely to the Company’s performance and its stockholders’ interests. The Plan is
designed to permit Participants to defer a portion of their Annual Fees and RSUs granted under the
2010 Equity Plan, until a Change in Control of the Company, the termination of the Plan, a date
specified by a Participant, the occurrence of an Unforeseeable Emergency, or a Participant’s death,
disability or Separation from Service. In addition, Participants may elect to have a portion of
their deferred Annual Fees converted into RSUs and may be eligible, as a result of such conversion,
to receive matching contributions from the Company in the form of Matching RSUs.

2. Definitions

     For purposes of the Plan, the following terms shall have the following meanings unless a
different meaning is plainly required by the context:

     (a) “2010 Equity Plan” shall mean the Company’s 2010 Equity and Performance Incentive Plan.

     (b) “Accounts” shall mean, collectively, a Participant’s Cash Deferred Account, RSU Account
and Matching Account under the Plan. Each Account shall be maintained solely as a bookkeeping entry
by the Company to evidence an unfunded obligation of the Company.

     (c) “Account List” shall mean the list referred to in Section 6(b).

     (d) “Annual Fee” shall mean the cash portion of any annual fee to which a Participant is
entitled under the Company’s director compensation policy, as may be amended from time to time.

     (e) “Beneficiary” shall mean any person, estate, trust, or organization entitled to receive
any payment under the Plan upon the death of a Participant pursuant to Section 7(c).

     (f) “Board of Directors” shall mean the Board of Directors of the Company.

     (g) “Cash Deferred Account” shall mean an account established and maintained by the Company in
its books and records to reflect the interest of a Participant in the Plan resulting from a
Participant’s deferred Annual Fees, denominated in cash, for the benefit of the Participant

1

 

and to record the adjustments thereto arising from hypothetical income, gains, losses, and any
other credits or charges.

     (h) “Change in Control” shall mean:

          (i) The first to occur of a “change in ownership” as described in Subsection 2(h)(i)(A), a
“change in effective control” as described in Subsection 2(h)(i)(B) or a “change in ownership of a
substantial portion of assets” as described in Subsection 2(h)(i)(C):

               (A) Change in Ownership. There is a change in ownership if any one person, or more
than one person acting as a group (as defined in Subsection 2(h)(ii)(A)), acquires ownership of
shares of Common Stock that, together with shares of Common Stock held by such person or group,
constitute more than fifty percent (50%) of the total fair market value or shares of Common Stock
of the Company. However, if any one person or more than one person acting as a group is considered
to own more than fifty percent (50%) of the total fair market value of shares of Common Stock of
the Company, the acquisition of additional shares of Common Stock by the same person or persons
shall not be considered to cause a change in the ownership of the Company (or to cause a change in
the effective control of the Company, within the meaning of Subsection 2(h)(i)(B)). An increase in
the percentage of shares of Common Stock owned by any one person, or persons acting as a group, as
a result of a transaction in which the Company acquires its shares of Common Stock in exchange for
property will be treated as an acquisition of shares of Common Stock for this purpose. However,
there is no change in ownership under this Subsection 2(h)(i)(A) when there is a transfer of shares
of Common Stock to an entity that is controlled by the stockholders of the transferring company.

               (B) Change in Effective Control. There is no change in effective control in the event
of an initial public offering of the Company or within the eighteen (18) month period immediately
following an initial public offering. Otherwise, there is a change in effective control if either
(1) any one person, or more than one person acting as a group (as determined under Subsection
2(h)(ii)(A)), acquires (or has acquired during the twelve (12) month period ending on the date of
the most recent acquisition by such person or persons) ownership of thirty percent (30%) or more of
the shares of Common Stock of the Company, or (2) a majority of the members of the Board of
Directors is replaced during any twelve (12) month period by directors whose appointment or
election is not endorsed by a majority of the members of the Board of Directors prior to the date
of the appointment or election.

               (C) Change in Ownership of a Substantial Portion of Assets. There is a change in
ownership of a substantial portion of assets if any one person, or more than one person acting as a
group (as determined in Subsection 2(h)(ii)(A)), acquires (or has acquired during the twelve (12)
month period ending on the date of the most recent acquisition by such person or persons) assets
from the Company that have a total gross fair market value equal to or more than forty percent
(40%) of the total gross fair market value of all of the assets of the Company immediately prior to
such acquisition or acquisitions. For this purpose, gross fair market value means the value of the
assets of the Company, or the value of the assets being disposed of, determined without regard to
any liabilities associated with such assets. However, there is no change in ownership of a
substantial portion of the assets of the Company under this Subsection

2

 

2(h)(i)(C) when there is a transfer to an entity that is controlled by the stockholders of the
transferring company.

          (ii) For purposes of the above events, the following rules shall apply:

               (A) Persons Acting as a Group. Persons shall not be considered to be acting as a group
solely because they purchase or own shares of Common Stock, or purchase assets, of the Company at
the same time, or as a result of the same public offering. However, persons shall be considered to
be acting as a group if they are the owners of a company that enters into a merger, consolidation,
purchase or acquisition of stock or assets, or similar business transaction with the Company. If a
person, including an entity, owns stock in such a company and in the Company at a time that both of
the companies enter into a merger, consolidation, purchase or acquisition of stock or assets, or
similar transaction, such shareholder is considered to be acting as a group with other shareholders
in a company only with respect to, and to the extent of, the ownership in that company prior to the
transaction giving rise to the change and not with respect to the ownership interest in the other
company.

               (B) Attribution. The attribution rules of Section 318(a) of the Code shall apply to
determine Common Stock ownership. Shares of Common Stock underlying a vested option are considered
owned by the individual who holds the vested option (and the shares of Common Stock underlying an
unvested option shall not be considered owned by the individual who holds the unvested option). For
purposes of the preceding sentence, however, if a vested option is exercisable for shares of Common
Stock that is not substantially vested (as defined in Treasury Regulations 1.83-3(b) and (j)), the
shares of Common Stock underlying the option are not treated as owned by the individual who holds
the option.

     (i) “Code” shall mean the Internal Revenue Code of 1986, as amended, including any successor
statute.

     (j) “Common Stock” means the Common Stock, par value $0.001 per share, of the Company.

     (k) “Company” shall mean Molycorp, Inc., a Delaware corporation, and any of its successors.

     (l) “Compensation Committee” shall mean the Compensation Committee, or any subcommittee
thereof, of the Board of Directors.

     (m) “Converted RSU” shall have the meaning set forth in Section 5(a).

     (n) “Deferral Election” shall mean the Participant’s written election to defer a portion of
his or her Annual Fees and/or RSUs pursuant to Section 4(c) and consistent with such form of
deferral election as is specified by the Compensation Committee.

     (o) “Deferred RSU” shall mean an RSU granted under the 2010 Equity Plan (other than a
Converted RSU or a Matching RSU) for which a Participant makes a Deferral Election.

3

 

     (p) “Disability” or “Disabled” shall mean a Participant is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months.

     (q) “Dividend Equivalent” shall mean an amount equal to the cash dividends paid by the Company
with respect to each share of Common Stock subject to each RSU credited to a Participant’s RSU
Account and Matching Account.

     (r) “Domestic Relations Order” shall mean a “domestic relations order” as defined in Code
Section 414(p)(1)(B).

     (s) “Effective Date” shall mean January 13, 2011.

     (t) “Employee” shall mean any person who is currently employed by the Company.

     (u) “Enrollment Date” shall mean the Participation Date, January 1 of each Plan Year and such
other dates as may be determined from time to time by the Compensation Committee.

     (v) “Hypothetical Investments” shall have the meaning set forth in Section 6(b).

     (w) “Matching Account” shall mean the account maintained on the books of the Company for the
purpose of accounting for the Matching RSUs for each Participant.

     (x) “Matching RSU” shall have the meaning set forth in Section 5(b).

     (y) “Nonemployee Director” shall mean each member of the Board of Directors who is not an
Employee.

     (z) “Normal Retirement” shall mean, unless the Compensation Committee determines otherwise,
the cessation of services for the Company by the Participant (other than by death or disability)
after attaining age 65 and completing 5 or more years of combined service with the Company and its
affiliates.

     (aa) “Participant” shall mean each Nonemployee Director who is eligible to receive benefits
under the Plan.

     (bb) “Participation Date” shall mean the first day of the first date on which the Compensation
Committee shall permit a Participant to defer compensation under the Plan, but in no event later
than thirty (30) days following the date the Nonemployee Director is first notified by the
Compensation Committee, or its designee, that the Nonemployee Director is eligible to participate
in the Plan.

     (cc) “Plan” shall mean the Molycorp, Inc. Nonemployee Director Deferred Compensation Plan, as
amended from time to time.

4

 

     (dd) “Plan Year” shall mean the twelve (12) month period commencing January 1st and ending on
December 31st next following, except that the first Plan Year shall be the Effective Date through
December 31, 2011.

     (ee) “Retirement Plan” shall mean the Molycorp Minerals, LLC 401(K) Plan.

     (ff) “RSU” shall mean the right to receive one share of Common Stock as granted pursuant to
the terms and conditions of the 2010 Equity Plan.

     (gg) “RSU Account” shall mean the account maintain on the books of the Company for a
Participant for the purpose of accounting for the Deferred RSUs and Converted RSUs.

     (hh) “Separation from Service” shall mean a Participant’s separation from service as a
Nonemployee Director or an Employee, as applicable, under Code Section 409A including the Treasury
Regulations and other guidance issued thereunder other than for death or disability. A transfer of
employment within or among any entities in the same controlled group as the Company (as determined
under Code Sections 414(b) or (c), as applied under Code Section 409A(d)(6) and applicable Treasury
Regulations) shall not constitute a Separation from Service.

     (ii) “Specified Employee” shall mean a “specified employee” with respect to the Company (or a
controlled group member (as determined under Code Sections 414(b) or (c), as applied under Code
Section 409A(d)(6) and applicable Treasury Regulations)) determined pursuant to procedures adopted
by the Company in compliance with Code Section 409A and Treasury Regulation Section 1.409A-1(i) or
any successor provision.

     (jj) “Specified Payment Date” shall mean a specified date or a fixed schedule (not to exceed
fifteen (15) years) that, in each case, is nondiscretionary and objectively determinable at the
time a Participant makes his or her Deferral Election.

     (kk) “Subsequent Change” shall have the meaning set forth in Section 4(e).

     (ll) “Trust” shall have the meaning set forth in Section 6(a).

     (mm) “Unforeseeable Emergency” shall mean (i) a severe financial hardship to the Participant
resulting from an illness or accident of the Participant or the Participant’s spouse, Beneficiary
or dependent (as defined in Code Section 152(a)), (ii) loss of the Participant’s property due to
casualty, or (iii) other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the Participant, each as determined to exist by the Compensation
Committee, in its sole and absolute discretion as defined by Code Section 409A and the Treasury
Regulations and other guidance thereunder.

     (nn) “Vesting Date” shall have the meaning set forth in Section 5(c).

5

 

3. Eligibility

     (a) Eligibility Requirements. Any Nonemployee Director shall become a Participant on
the Enrollment Date coincident with or next following his or her selection by the Compensation
Committee and notification thereof.

     (b) Ineligible Participant. If the Compensation Committee determines that a
Participant is no longer eligible to participate in the Plan, the Participant’s Deferral Election
shall terminate and he or she shall make no more contributions under the Plan until it is again
determined that he or she is eligible to participate. The Account of such a Participant shall
continue to be adjusted pursuant to the provisions of Section 6 until the Account is distributed
under Section 7.

4. Deferral Elections

     (a) Opportunity to Defer. A Participant may elect to defer payment of a portion of the
Annual Fee otherwise payable to him or her for services to be rendered after his or her
Participation Date by any dollar amount or whole percentage of his or her Annual Fee (subject to
such limits and restrictions as to any dollar amount or percentage as may be established from time
to time by the Compensation Committee), such amount to be credited to his or her Cash Deferred
Account under the Plan, subject to any adjustments made pursuant to Section 5(a). In addition, a
Participant may also elect to defer the receipt of shares of Common Stock payable to the
Participant with respect to RSUs granted under the 2010 Equity Plan (subject to any limits and
restrictions that may be established from time to time by the Compensation Committee).

     (b) Accounts.

          (i) Cash Deferred Account. A Cash Deferred Account shall be established for each
Participant by the Company as of the effective date of such Participant’s first Deferral Election
of his or her Annual Fee.

          (ii) RSU Account. An RSU Account shall be established for each Participant by the
Company as of the effective date of such Participant’s first Deferral Election of Deferred RSUs or
the Participant’s first Deferral Election in which the Participant elects to convert a portion of
his or her Annual Fee into Converted RSUs.

          (iii) Matching Account. A Matching Account shall be established for each Participant
by the Company as of the effective date of such Participant’s first Deferral Election in which the
Participant elects to convert a portion of his or her Annual Fee into Converted RSUs.

     (c) Deferral Elections.

          (i) Timing. The initial Deferral Election of a new Participant with respect to Annual
Fees and Deferred RSUs shall be made by written notice signed by the Participant and delivered to
the Company not later than thirty (30) days after the Participant first becomes eligible to
participate in the Plan or any other plan maintained by the Company that provides for the deferral
of the Participant’s compensation; provided, however, subject to Section 4(c)(i)(B),

6

 

such initial Deferral Election shall not apply to any portion of his or her Annual Fees earned or RSUs granted
for service prior to the date such election form is filed with the Company. Any subsequent Deferral
Elections shall be made by written notice signed by the Participant and delivered to the Company
not later than the last day of the month prior to the next succeeding Plan Year and shall be
effective on the first day of such succeeding Plan Year with respect to Annual Fees to be earned
and RSUs to be granted in such subsequent Plan Year. A Deferral Election with respect to the deferral of future Annual Fees and Deferred RSUs shall be an
irrevocable election for each Plan Year (and shall become irrevocable immediately prior to the
Enrollment Date to which such Deferral Election relates) unless otherwise modified or revoked
during the Plan Year as provided in Section 4(d) herein. The termination of participation in the
Plan shall not affect amounts (and the deemed investment earnings and losses thereon) previously
deferred by a Participant under the Plan.

          (ii) Content.

               (A) Deferral Elections. A Deferral Election made pursuant to Section 4(c)(i)
shall be made in writing on a form prescribed by the Company and the Deferral Election shall state:

                    (1) That the Participant wishes to make an election to defer the receipt of a portion of his
or her Annual Fee and/or RSUs;

                    (2) The whole percentage or dollar amount of such Annual Fee and/or RSUs to be deferred; and

                    (3) The Specified Payment Date, if any, on which the Participant shall receive or begin to
receive the distributions of his or her Accounts with respect to the Annual Fee and/or RSUs
deferred under such Deferral Election.

               (B) Each Deferral Election with respect to Annual Fees shall also include the Participant’s
election regarding the form of payment to be received upon his or her death, Disability, Separation
from Service or applicable Specified Payment Date, such form to be either (1) a lump sum or (2)
monthly, quarterly, or annual installments over a period not to exceed fifteen (15) years. The
Deferral Election with respect to the form of payment shall govern the distribution of such
Participant’s Cash Deferred Account, except as provided in Section 4(e). If a Participant fails to
specify a form of payment, his or her Cash Deferred Account shall be distributed in a lump sum.

     (d) Suspension of Deferral Election. Notwithstanding the provisions of Section 4(c) of
the Plan, the Compensation Committee, in its sole discretion upon written application by a
Participant, may authorize the suspension of a Participant’s Deferral Election in the event of an
Unforeseeable Emergency. Any suspension authorized by the Compensation Committee shall become
effective as soon as practicable after the Compensation Committee’s receipt of a suspension
application, but no later than the first payroll period beginning thirty (30) days after the
receipt of such suspension application. Such suspension shall be effective for the remainder of the
Plan Year and shall be deemed an annual election for each succeeding Plan Year unless a subsequent
Deferral Election is filed with the Company pursuant to Section 4(c).

7

 

     (e) Change in Form of Distribution and Specified Payment Date. If approved by the
Compensation Committee, a Participant may amend a prior Deferral Election on a form provided by the
Compensation Committee in order to change the form of the distribution of his or her Accounts
and/or any Specified Payment Date (in each case, a “Subsequent Change”). A Subsequent
Change shall be given effect by the Compensation Committee only if the election to change the form
of payment or the Specified Payment Date (i) does not take effect until at least twelve (12) months after the date on which the election is made and (ii) is made at least
twelve (12) months prior to the date a lump sum is scheduled to be paid or, in the case of
installment payments, twelve (12) months prior to the date the first payment is scheduled to be
paid. Notwithstanding anything herein to the contrary, any payment with respect to which a
Participant makes a Subsequent Change shall not be made before the fifth (5th)
anniversary of the date on which the payment would have been made had the Participant not made the
Subsequent Change.

5. RSU Conversions and Matching Contributions

     (a) Conversion of Annual Fees into RSUs. Each Participant may elect in his or her
Deferral Election to convert a portion of his or her Annual Fee that he or she elects to defer
during the applicable Plan Year pursuant to Section 4 into additional RSUs (the “Converted
RSUs”), which Converted RSUs shall be credited to the Participant’s RSU Account. In such case,
the number of Converted RSUs will equal the amount of Annual Fee, or the portion thereof, that the
Participant elects to convert into RSUs divided by the Market Value per Share (as defined in the
2010 Equity Plan) on the date on which the Annual Fee, or the portion thereof, would be paid, and
such Converted RSUs shall be credited to the Participant’s RSU Account on such date. Converted
RSUs will be granted pursuant to the terms and conditions of the 2010 Equity Plan.

     (b) Matching Contributions. For each Plan Year, if a Participant elects to convert
his or her Annual Fee into Converted RSUs pursuant to Section 5(a), the Company shall credit to his
or her Matching Account a number of RSUs equal to 25% of the number of Converted RSUs credited to
his or her RSU Account in the applicable Plan Year (the “Matching RSUs”). The Matching
RSUs will be granted by the Company pursuant to the terms and conditions of the 2010 Equity Plan.
The Matching RSUs will be credited to a Participant’s Matching Account on the date the applicable
Converted RSUs are credited to his or her RSU Account.

     (c) Vesting of Matching RSUs. A Participant’s right to receive the shares of Common
Stock subject to any Matching RSU shall become nonforfeitable with respect to one-hundred percent
(100%) of the total number of such Matching RSUs on the third (3rd) anniversary of the
date on which the Matching RSUs are credited to the Participant’s Matching Account (the
“Vesting Date”) if (i) the Participant continuously provides service to the Company until
such time or (ii) Participant’s service to the Company ceases by reason of Normal Retirement prior
to the Vesting Date. Notwithstanding anything herein to the contrary, a Participant shall not be
entitled to any Dividend Equivalents with respect to a Matching RSU prior to the Matching RSU’s
applicable Vesting Date. Upon a distribution of the Matching Account, no shares subject to any
unvested Matching RSU shall be distributed.

8

 

6. Investment of Cash Deferred Accounts; Dividend Equivalents

     (a) Rabbi Trust. A rabbi trust (the “Trust”) may be established in connection
with the Plan. In such case, the Company will transfer the Participants’ deferred Annual Fees to
the Trust. The Trust will be irrevocable and will terminate on the earlier to occur of (i) all
funds having been distributed from the Trust, or (ii) the date all obligations under the Plan have
been satisfied. The Trust will provide that the assets of the Trust will be distributed only to or
for the benefit of the Participants or their beneficiaries unless the insolvency provisions of the
Trust apply. The Company will appoint an independent trustee for the Trust and will enter into a trust
agreement, in form and substance acceptable to the Company, with the Trustee. The Compensation
Committee shall select the initial independent trustee.

     (b) Hypothetical Investments. Any amounts of cash credited to a Participant’s Cash
Deferred Account shall be deemed to be invested in one or more hypothetical investments
(“Hypothetical Investments”). Each Participant shall select Hypothetical Investments from a
list of investments selected from time to time by the Compensation Committee (“Account
List”), and subject to any limitation on permissible allocations among groups of Hypothetical
Investments that the Compensation Committee may establish. The Compensation Committee may change or
discontinue any Hypothetical Investment at any time; provided that, following a Change in Control,
the Compensation Committee may not change or modify the investment options existing immediately
prior to such Change in Control in any manner that is adverse to the Participants. In any case, the
Trust may (but will not be required to) make actual investments that mirror a Participant’s
Hypothetical Investments.

          (i) Investment of Participant Accounts. The amounts of hypothetical income,
appreciation and depreciation in value of the Hypothetical Investments shall be credited and
debited to, or otherwise reflected in, such Cash Deferred Account from time to time in accordance
with procedures established by the Compensation Committee. Unless otherwise determined by the
Compensation Committee, amounts credited to a Participant’s Cash Deferred Account shall be deemed
invested in Hypothetical Investments as of the date so credited. Each Participant shall assume the
investment risk of the Hypothetical Investments.

          (ii) Allocation and Reallocation of Hypothetical Investments. A Participant may
allocate and reallocate amounts credited to the Participant’s Cash Deferred Account to one or more
of the Hypothetical Investments authorized under the Plan with such frequency as and subject to
such procedures and rules as determined by the Compensation Committee. The Compensation Committee
may restrict or prohibit reallocation of amounts deemed invested in specified Hypothetical
Investments to comply with applicable law or regulation.

          (iii) No Actual Investment. Notwithstanding any other provision of this Plan that may
be interpreted to the contrary, the Hypothetical Investments are to be used for measurement
purposes only. A Participant’s election of any such Hypothetical Investments, the allocation of
such Hypothetical Investments to his or her Cash Deferred Account, the calculation of additional
amounts and the crediting or debiting of such amounts to a Participant’s Cash Deferred Account
shall not be considered or construed in any manner as an actual investment of his or her Cash
Deferred Account in any such Hypothetical Investments. In the event that the Compensation
Committee, in its discretion, decides to cause the Trustee to invest funds in any or

9

 

all of the Hypothetical Investments, no Participant shall have any rights in or to such investments
themselves. Without limiting the foregoing, a Participant’s Cash Deferred Account shall at all
times be a bookkeeping entry only and shall not represent any investment made on his or her behalf
by the Company or the Trust. The Participant shall at all times remain an unsecured creditor of the
Company with respect to his or her Cash Deferred Account.

     (c) Dividend Equivalents. The Company may credit a Participant with Dividend
Equivalents with respect to each RSU credited to his or her RSU Account or Matching Account. Dividend Equivalents, if any, shall be accrued and paid in cash to a Participant upon the
distribution of his or her RSU Account and Matching Account. The cash value of the Dividend
Equivalents shall not be credited to the Participant’s Cash Deferred Account.

     (d) Participant Reports. At the end of each Plan Year (or on a more frequent basis as
determined by the Compensation Committee), a report shall be issued to each Participant who has an
Account, and such report will set forth the value of each such Account and, as applicable, the
number of RSUs credited to each such Account.

7. Distribution of Accounts

     (a) Distribution upon a Specified Payment Date. Subject to Section 7(j), if a
Participant’s Deferral Election provides for distributions based on the occurrence of a Specified
Payment Date, upon such Specified Payment Date, the Account(s) attributable to such Deferral
Election shall be distributed to the Participant in a lump sum or, with respect to a Cash Deferred
Account for which the Deferral Election provides for a fixed schedule, shall commence to be
distributed to the Participant in equal monthly, quarterly or annual installments not to exceed a
fifteen (15) year period as specified on the Participant’s Deferral Election. In the event the
value of any Participant’s Cash Deferred Account as of his or her Specified Payment Date is ten
thousand dollars ($10,000) or less, the Cash Deferred Account shall be distributed in cash in a
lump sum notwithstanding the Participant’s election to have his or her Cash Deferred Account
distributed in installments under the Plan. The Cash Deferred Accounts shall be valued on the date
a distribution is processed. All payments and deliveries due under this Section 7(a) shall be made
or shall commence as soon as reasonably feasible following the Participant’s Specified Payment
Date, but in no event later than thirty (30) days following the Specified Payment Date; provided
that, if such thirty-day period ends in the taxable year following the year in which the Specified
Payment Date occurs, the Participant shall not have the right to designate the year of payment.

     (b) Distribution upon Separation From Service.

          (i) Generally. Subject to 7(j), if a Participant’s Deferral Election provides for a
distribution based on his or her Separation from Service, upon such Separation from Service, the
Account(s) attributable to such Deferral Election shall be distributed to the Participant in a lump
sum or, with respect to a Cash Deferred Account for which the Deferral Election provides for a
fixed schedule, in equal monthly, quarterly or annual installments not to exceed a fifteen (15)
year period as specified on the Participant’s Deferral Election. In the event the value of any
Participant’s Cash Deferred Account at the time distribution is to commence is ten thousand dollars
($10,000) or less, the Cash Deferred Account shall be distributed in cash in a lump sum

10

 

notwithstanding the Participant’s election to have his or her Cash Deferred Account distributed in
installments under the Plan. The Cash Deferred Accounts shall be valued on the date a distribution
is processed. Subject to Section 7(b)(ii), all payments and deliveries due under this Section
7(b)(i) shall be made or shall commence as soon as reasonably feasible following the date of a
Participant’s Separation from Service, but in no event later than thirty (30) days following the
date of such date; provided that, if such thirty-day period ends in the taxable year following the
year in which the Separation from Service occurs, the Participant shall not have the right to
designate the year of payment.

          (ii) Distributions to Specified Employees. Notwithstanding the foregoing,
distributions to a Specified Employee as a result of Separation from Service, whether the
distribution is made in the form of a lump sum or installments, shall not be made or the payments
may not begin before the six-month anniversary of the date of the Separation from Service, or, if
earlier, the date of death of the Specified Employee.

     (c) Distribution upon Death. Upon the death of a Participant prior to the payment of
his or her Accounts, the balance of his or her Accounts shall be paid to the Participant’s
Beneficiary in a lump sum or, with respect to a Cash Deferred Account for which the Deferral
Election provides for a fixed schedule, in equal monthly, quarterly or annual installments not to
exceed a fifteen (15) year period as specified on the Participant’s Deferral Election form with
such payment to be made or payments to commence in the case of installment distributions within
sixty (60) days following the date of the Participant’s death; provided that, if such sixty-day
period ends in the taxable year following the year in which the Participant’s death occurs, neither
the Participant nor the Beneficiary shall have the right to designate the year of payment; further,
provided, however, if the value of the Cash Deferred Account at the time an installment
distribution is to commence is ten thousand dollars ($10,000) or less, the Cash Deferred Account
shall be distributed to the Participant’s Beneficiary in a lump sum. The Cash Deferred Account
shall be valued on the date a distribution is processed. If a Participant who has elected to have
his or her Accounts distributed in installments under the terms of the Plan dies subsequent to the
commencement of such installment payments but prior to the completion of such payments, the
installments shall continue and shall be paid to the Beneficiary as if the Participant had not
died.

     (d) Beneficiary Designation. A Participant may designate a Beneficiary or
Beneficiaries, and a contingent Beneficiary or Beneficiaries, to receive the undistributed portion
of his or her Accounts if he or she dies before distribution is completed. In the event a
Beneficiary designation is not on file or all designated Beneficiaries are deceased or cannot be
located, payment will be made to the Participant’s estate. The Beneficiary designation may be
changed by the Participant or former Participant at any time without the consent of the prior
Beneficiary.

     (e) Distribution upon Disability. Upon the Disability of a Participant prior to the
payment of his or her Accounts, the balance of his or her Accounts shall be paid to the Participant
in a lump sum or, with respect to his or her Cash Deferred Account, in equal monthly, quarterly or
annual installments not to exceed a fifteen (15) year period as specified on the Participant’s
Deferral Election form with such payment to be made or payments to commence in the case of
installment distributions within ninety (90) days following the date on which the Participant
becomes Disabled; provided that, if such ninety-day period ends in the taxable year

11

 

following the year in which the Participant becomes Disabled, the Participant shall not have the right to
designate the year of payment; further, provided, however, if the value of the Cash Deferred
Account at the time an installment distribution is to commence is ten thousand dollars ($10,000) or
less, Cash Deferred Account shall be distributed to the Participant in a lump sum. The Cash
Deferred Account shall be valued on the date a distribution is processed.

     (f) Distribution upon an Unforeseeable Emergency. A Participant may request a
distribution of his or her Accounts due to an Unforeseeable Emergency by submitting a written
request to the Compensation Committee accompanied by evidence to demonstrate that the circumstances being experienced qualify as an Unforeseeable Emergency. The Compensation
Committee shall have the authority to require such evidence as it deems necessary to determine if a
distribution is warranted. If an application for a distribution due to an Unforeseeable Emergency
is approved, the distribution is limited to an amount sufficient to meet the need resulting from
the Unforeseeable Emergency. The allowed distribution shall be payable in the form determined by
the Compensation Committee as soon as possible after approval of such distribution.

     (g) Distribution Pursuant to a Domestic Relations Order. The Compensation Committee is
authorized to make any payments directed by a Domestic Relations Order in any action in which the
Plan or the Compensation Committee has been named as a party. In addition, if a court determines
that a spouse or former spouse of a Participant has an interest in the Participant’s benefits under
the Plan in connection with a property settlement or otherwise, the Compensation Committee, in its
sole discretion, shall have the right, notwithstanding any election made by a Participant, to
immediately distribute the spouse’s or former spouse’s interest in the Participant’s benefits under
the Plan to that spouse or former spouse.

     (h) Distribution upon Change in Control. Upon a Change in Control of the Company, a
Participant shall be paid the balance of his Accounts in a lump sum within sixty (60) days
following the date on which the Change in Control occurs; provided that, if such sixty-day period
ends in the taxable year following the year in which the Change in Control occurs, the Participant
shall not have the right to designate the year of payment.

     (i) Distribution in the Event of Taxation. If, for any reason, it has been determined
that the Plan fails to meet the requirements of Code Section 409A and the Treasury Regulations
promulgated thereunder, and the failure is not or cannot be corrected under an Internal Revenue
Service correction program for such failure, the Compensation Committee shall distribute to the
Participant the portion of the Participant’s Account(s) that is required to be included in income
as a result of the failure of the Plan to comply with the requirements of Code Section 409A and the
Treasury Regulations promulgated thereunder.

     (j) Distribution Events. Notwithstanding any provision of this Plan to the contrary,
a Participant’s Cash Deferred Account, RSU Account and Matching Account shall be distributed in
accordance with his or her Deferral Election made with respect to such Account. With respect to
each Account, a Deferral Election shall provide for a distribution on or based on (A) the
Participant’s Specified Payment Date, (B) the Participant’s Separation from Service or (C) the
first to occur of the Participant’s Specified Payment Date or the Participant’s Separation from
Service. Notwithstanding the foregoing, all Accounts, or, if applicable, a portion thereof, shall

12

 

be distributed on or based on the first to occur of: (T) the Participant’s death, (U) the
Participant’s Disability, (V) an Unforeseeable Emergency, (W) the receipt of a Domestic Relations
Order requiring distribution, (X) a Change in Control, (Y) income inclusion due to failure to
comply with Code Section 409A or (Z) a Plan termination pursuant to Section 9(c).

     (k) Form of Distributions. Distributions made to a Participant with respect to his or
her Cash Deferred Account shall be paid in cash. Distributions made to a Participant with respect
to his or her RSU Account and Matching Account, to the extent the credited Matching RSUs are vested
pursuant to Section 5(c), shall be paid in shares of Common Stock; provided, however, that the value of any fractional shares otherwise deliverable to the Participant
shall be paid in cash; provided, further, that any Dividend Equivalents accrued with respect to the
RSUs credited to the Participant’s RSU Account and Matching Account shall be paid in cash.

8. Administration of Plan

     (a) Powers of the Compensation Committee. The Compensation Committee shall be
responsible for the general administration of the Plan and for carrying out the provisions hereof.
The Compensation Committee shall have all powers that are necessary to carry out the provisions of
the Plan, including, with limitation, the powers to:

          (i) determine all questions relating to eligibility for participation in the Plan and the
amount in the Account or Accounts of the Participants and all questions pertaining to claims for
benefits and procedures for claim review;

          (ii) resolve all other questions arising under the Plan, including any questions of
construction; and

          (iii) take such further action that the Company deems advisable in the administration of the
Plan.

The actions taken by the Compensation Committee hereunder shall be final and binding upon all
interested parties.

     (b) Agents. The Compensation Committee may, from time to time, employ other agents
and delegate to them such administration duties as it deems necessary, and may, from time to time,
consult with counsel.

9. Miscellaneous Provisions

     (a) No Alienation. Subject to Section 7(g), neither the Participant, his Beneficiary,
nor his legal representative shall have any rights to commute, sell, assign, transfer or otherwise
convey the right to receive any payments hereunder, which payments and the rights thereto are
expressly declared to be nonassignable and nontransferable. Any attempt to assign or transfer the
right to payments of this Plan shall be void and have no effect.

     (b) Unsecured General Creditor. The Plan shall at all times be considered entirely
unfunded and no provision shall at any time be made with respect to segregating assets of any
Participant for payment of any amounts hereunder. The Plan constitutes a mere promise of the

13

 

Company to make payments to Participants in the future and, subject to Section 6(a), Participants
have rights only as unsecured general creditors of the Company.

     (c) Amendment and Termination. The Plan may be amended, modified, or terminated by the
Board of Directors in its sole discretion at any time and from time to time; provided, however,
that no such amendment, modification, or termination shall impair any rights to benefits under the
Plan prior to such amendment, modification, or termination; further, provided, that any termination
of the Plan and any distributions made in connection with such termination shall, in each case, be made in accordance with the requirements of Code Section 409A and
Treasury Regulation Section 1.409A-3(j)(4)(ix).

     (d) No Effect on Other Benefits. It is expressly understood and agreed that the
payments made in accordance with the Plan are in addition to any other benefits or compensation to
which a Participant may be entitled or for which he or she may be eligible, whether funded or
unfunded, by reason of his or her employment by the Company.

     (e) No Tax Representations. The Company makes no representation with respect to the
state, federal, financial, estate planning or the securities implications of the Plan. Participants
should consult with their own tax, financial and legal advisors with respect to their participation
in the Plan.

     (f) Governing Law; Jurisdiction. The validity, construction, and effect of the Plan
and any rules and regulations relating to the Plan shall be determined in accordance with the laws
of the State of Colorado, without giving effect to principles of conflicts of laws to the extent
not pre-empted by federal law. The enforcement or interpretation of the Plan and any disputes under
or arising out of the Plan shall be submitted to the exclusive jurisdiction and venue of the
federal and state courts located in the County of Denver, Colorado.

     (g) Code Section 409A. All Accounts under the Plan that are intended to be “deferred
compensation” subject to Section 409A shall be interpreted, administered and construed to comply
with Section 409A, and all Accounts under the Plan that are intended to be exempt from Section 409A
shall be interpreted, administered and construed to comply with and preserve such exemption. The
Compensation Committee shall have full authority to give effect to the intent of the foregoing
sentence. To the extent necessary to give effect to this intent, in the case of any conflict or
potential inconsistency between the Plan and a provision of any Account or Deferral Election, the
Plan shall govern. Notwithstanding the foregoing, neither the Company nor any member of the Board
of Directors shall have any liability to any person in the event Code Section 409A applies to any
Account in a manner that results in adverse tax consequences for the Participant or any of his or
her Beneficiaries or transferees.

     (h) Construction. The captions and numbers preceding the sections of the Plan are
included solely as a matter of convenience of reference and are not to be taken as limiting or
extending the meaning of any of the terms and provisions of the Plan. Whenever appropriate, words
used in the singular shall include the plural or the plural may be read as the singular.

     (i) Severability. In the event that any provision of the Plan shall be declared
illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining
provisions of the

14

 

Plan but shall be fully severable, and the Plan shall be construed and enforced
as if said illegal or invalid provision had never been inserted herein.

     IN WITNESS WHEREOF, to record the adoption of this Plan, effective as of January 13, 2011, the
undersigned, being duly authorized to act on behalf of the Board of Directors of Molycorp, Inc.,
has executed this document this 13th day of January, 2011.

	 	 	 	 	 
	 	 	 
	 	                         /s/ James S. Allen
 	 
	 	Name:  	James S. Allen 	 
	 	Title:  	Chief Financial Officer 	 
	 

15exv10w9

Exhibit 10.9

*** indicates material that has been omitted pursuant to a Request for Confidential Treatment filed
with the Securities and Exchange Commission. A complete copy of this agreement, including the
redacted portions so indicated, has been filed separately with the Securities and Exchange
Commission.

EXECUTION

ASSET SALE AGREEMENT

(PostRock Energy Corporation)

     THIS ASSET SALE AGREEMENT (this “Agreement”), dated as of September 21, 2010, is made by and
between POSTROCK ENERGY CORPORATION, a Delaware corporation (the “Company”), and ROYAL BANK OF
CANADA, as Lender (as defined below).

R E C I T A L S:

     A. Pursuant to that certain Third Amended and Restated Credit Agreement, dated of even date
herewith (as the same may hereafter be amended, supplemented and restated, the “Credit Agreement”),
among QUEST EASTERN RESOURCE LLC, a Delaware limited liability company (“Borrower”), Royal Bank of
Canada, as lender (“Lender”), and Royal Bank of Canada, as administrative agent and collateral
agent (in its capacity as administrative agent and collateral agent, the “Administrative Agent”),
the Lender agreed to make Loans for the account of the Borrower.

     B. Pursuant to Section 4.01(b)(i) of the Credit Agreement, Borrower is required to deliver to
the Administrative Agent this Agreement executed by the Company.

     C. The Company has duly authorized the execution, delivery and performance of this Agreement.

     D. Company owns indirectly 100% of the equity of Borrower.

     E. It is in the best interests of the Company to execute this Agreement inasmuch as the
Company will derive substantial direct and indirect benefits from the loans made from time to time
to or for the account of the Borrower.

     NOW THEREFORE, for good and valuable consideration, the receipt of which is hereby
acknowledged, and in order to fulfill the requirements of the Credit Agreement, the Company agrees,
for the benefit of Lender, as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1. Certain Terms. The following capitalized terms when used in this
Agreement, including its preamble and recitals, shall have the following meanings (such definitions
to be equally applicable to the singular and plural forms thereof):

     “Administrative Agent” is defined in Recital A.

     “Agreement” is defined in the preamble.

 Page 1

 

     “Amount of Loss” shall mean (A) if the amount paid to Lender (whether for principal, interest,
fees, expenses, or otherwise) in connection with a Qualifying Sale is (i) $*** or more, zero, (ii)
if the amount paid is less than $*** but equal to or more than $***, then the excess of $*** over
the amount paid to Lender in connection with a Qualifying Sale (excluding any payment pursuant to
this Agreement) but in no event to exceed $7,500,000, and (iii) if the amount paid to Lender
(whether for principal, interest, fees, expenses or otherwise) in connection with a Non-Qualifying
Sale is less than $***, $7,500,000 and (B) in connection with the Company’s exercise of the Put
Option, $7,500,000.

     “Borrower” is defined in Recital A.

     “Business Day” shall have the meaning set forth for such term in the Credit Agreement;
“Business Days” shall be the plural of Business Day.

     “Closing Date” is defined in Section 2.1.

     “Company” is defined in the preamble.

     “Company Share Payment Notice” is defined in Section 2.1.

     “Company Shares” means shares of common stock of the Company, $0,001 par value.

     “Credit Agreement” is defined in Recital A.

     “Current Operating Agreement” is defined in Section 4.2(d).

     “Deferred Payment Amount” means, in connection with a Qualifying Sale or a Non-Qualifying
Sale, the amount or amounts of any purchase price deferred, whether or not evidenced by a
promissory note.

     “Escrowed Amount” means, in connection with a Qualifying Sale or a Non-Qualifying Sale, the
amount or amounts placed in escrow against any liabilities associated with the assets being sold,
which amount will be paid either to the buyer or the Lender, subject to Lender’s obligation to
remit any released Escrowed Amount to the Company to the extent required under Section 2.1(b)
hereof.

     “Fees and Expenses” is defined in Section 5.8.

     “Intercompany Loans” means all outstanding intercompany loans made by the Company or PESC to
Borrower permitted under the Credit Agreement in the aggregate not to exceed $2,000,000.

     “Lender” is defined in the Recital A.

     “Loan Documents” means the Loan Documents (as defined in the Credit Agreement).

     “Marcellus Assets” means the Marcellus shale gas properties owned by Borrower and located in
New York and West Virginia that constitute the real property collateral mortgaged by Borrower to
secure repayment of amounts owing under the Credit Agreement and Note.

 Page 2

 

     “Marcellus Pipeline” means the gathering system owned and operated by Borrower.

     “New Operating Agreement” is defined in Section 4.2(d).

     “Non-Qualifying Sale” means a sale made with the consent of Lender, which sale would otherwise
meet the definition of a Qualifying Sale, except that the sale will result in a payment to the
Lender of less than $*** (excluding any payment made pursuant to this Agreement).

     “Note” means the Note (as defined in the Credit Agreement).

     “Notice of Registered Holder” is defined in Section 3.1.

     “Obligations” means the Obligations (as defined in the Credit Agreement).

     “PESC” means PostRock Energy Services Corporation, a Delaware corporation

     “Pipeline Purchase Price” is defined in Section 4.3(b).

     “Pipeline Sale Circumstance” and “Pipeline Sale Circumstances” are defined in Section 4.3(b).

     “PMP” is defined in the definition of “QC Marcellus Assets”

     “Proposed Non-Qualifying Sale” is defined in Section 4.2(a).

     “Put Exercise Circumstance” is defined in Section 4.2(b)

     “Put Option” is defined in Section 4.2(b)

     “Put Transfer” means the transfer of 100% of the equity interest in Borrower by PESC to
Lender, after and as a result of the Company’s exercise of the Put Option.

     “Qualifying Sale” means (i) a voluntary sale of the Marcellus Assets resulting in payment to
the Lender of no less than $*** (excluding any payment made pursuant to this Agreement) or (ii) a
voluntary sale of a controlling interest in the equity of Borrower resulting in a payment to such
equity holder of no less than $*** (excluding any payment made pursuant to this Agreement; provided
that any such sale involving an Escrow Amount or a Deferred Payment Amount will constitute a
Qualifying Sale only if the other consideration for such sale includes cash proceeds that result in
an amount being paid to Lender on the Closing Date of at least $*** (excluding any payment made
pursuant to this Agreement).

     “QC Marcellus Assets” means the Marcellus shale gas properties owned by PostRock MidContinent
Production, LLC, successor by merger to Bluestem Pipeline, LLC and Quest Cherokee, LLC (“PMP”)
located in New York and West Virginia that constitute a portion of the real property collateral
mortgaged by PMP to secure repayment of amounts owing under the Borrowing Base Credit Agreement,
dated of even date herewith, by and among, PESC and PMP, as borrowers, and Royal Bank of Canada, as
administrative agent and collateral agent.

     “Sale Process” is defined in Section 4.1.

 Page 3

 

     “Taxes” is defined in clause (a) of Section 2.7.

     “UCC” means the Uniform Commercial Code as in effect in the State of New York.

     SECTION 1.2. Credit Agreement Definitions. Unless otherwise defined herein or the
context otherwise requires, capitalized terms used in this Agreement, including its preamble and
recitals, have the meanings provided in the Credit Agreement.

ARTICLE II

LIMITED LOSS SHARING PROVISIONS

     SECTION 2.1. Limited Loss Sharing.

     (a) The Company hereby absolutely, unconditionally, and irrevocably agrees to pay to Lender
the Amount of Loss, if any, which Lender suffers as a result of a Qualifying Sale or a
Non-Qualifying Sale or to which Lender is entitled hereunder in connection with the Put Transfer.
The Company shall have the option of paying such Amount of Loss, in cash or Company Shares (or a
combination thereof) at the closing of any Qualifying Sale, Non-Qualifying Sale, or Put Transfer
(the “Closing”; the date on which the Closing occurs, the “Closing Date”). The Company shall
notify the Administrative Agent in writing at least five (5) Business Days in advance of the
Closing Date of its election to pay all or a portion of the Amount of Loss in Company Shares (such
notice whether to pay all or a portion of the Amount of Loss or of the Pipeline Purchase Price, the
“Company Share Payment Notice”). The Company is not a guarantor of the Credit Agreement and
therefore the Company has no obligations of any kind related to the Credit Agreement except those
set forth in this Agreement that are specifically related to a Qualifying Sale, a Non-Qualifying
Sale, a Put Transfer, and the matters set forth in Article IV.

     (b) With regard to any Qualifying Sale or Non-Qualifying Sale that involves an Escrowed Amount
or a Deferred Payment Amount, the Amount of Loss shall be calculated on the Closing Date excluding
the Escrowed Amount and the Deferred Payment Amount, but after repayment of any Intercompany Loans,
in any case. If upon disbursement of Escrowed Amount and/or the Deferred Payment Amount, the
amount of the payment to Lender would result in Lender receiving more than Lender would be entitled
to under this Agreement, any excess shall be remitted by Lender to the Company within five (5)
Business Days (to the extent received by Lender, or if amounts in respect of Deferred Payment
Amount are received by the Company, the Company may retain any such excess). For example, if the
Marcellus Assets are sold for $*** cash on the Closing Date, the Amount of Loss (after repayment of
all Intercompany Loans) will be $5,550,000 ($*** minus $***). If the Marcellus Assets are sold for
a total of $*** but $*** is paid in cash on the Closing Date and $5,000,000 is placed in escrow and
becomes the Escrowed Amount, the Amount of Loss (after repayment of all Intercompany Loans)
calculated at the Closing Date will be $7,500,000 (the excess of $*** minus $*** (subject to
$7,500,000 maximum)). If the $5,000,000 in Escrowed Amount is subsequently disbursed to the
Lender, the Amount of Loss will be recalculated (trued-up) based on a sale price of $*** and the
Amount of Loss as recalculated will be $5,550,000. Therefore, the Lender will retain $3,050,000 of
the Escrowed Amount and the Lender will remit to the Company $1,950,000 within five (5) Business
Days.

 Page 4

 

     SECTION 2.2. Minimum Proceeds. Lender shall have no obligation, and there is no
agreement or understanding obligating Lender, to consent to a sale that would constitute a
Non-Qualifying Sale if Lender were to consent to such sale. The Administrative Agent’s lien on the
Marcellus Assets and Borrower’s equity held for the benefit of the Lender shall not be released if
less than $*** is paid to Lender (excluding any payment made to Lender under this Agreement),
except in connection with a Non-Qualifying Sale.

     SECTION 2.3. Satisfaction of Obligations. Lender hereby absolutely, unconditionally,
and irrevocably agrees to accept in full payment of the Obligations, (i) the Net Cash Proceeds
received by Borrower (or Borrower’s equity holder, in the case of a sale of Borrower’s equity) and
paid to Lender in connection with a Qualifying Sale or a Non-Qualifying Sale, together with the
Amount of Loss, if any, paid by the Company pursuant to this Agreement (up to but not exceeding the
amount of the Obligations at the time then owing by Borrower to Lender), or (ii) in the case of an
exercise of the Put Option, the Put Transfer, together with any amount payable pursuant to Section
4.2(b) of this Agreement (up to but not exceeding the amount of the Obligations at any time then
owing by Borrower to Lender). Upon satisfactory evidence that such payments have been or will be
made to Lender’s satisfaction, Lender will instruct the Administrative Agent to execute and deliver
on or prior to the Closing Date, to such party as Borrower shall direct, all mortgage releases and
uniform commercial code financing statement termination statements covering the Borrower’s
collateral, including the Marcellus Assets, and shall return to the Company the certificates (if
any) representing the equity of the Borrower owned indirectly by the Company.

     SECTION 2.4. Indemnification. The Company hereby absolutely, unconditionally, and
irrevocably indemnifies and holds harmless Lender for any and all costs and expenses (including
reasonable attorney’s fees and expenses) incurred by Lender in enforcing any rights against the
Company under this Agreement.

     SECTION 2.5. Agreement Absolute, etc. This Agreement shall in all respects be a
continuing, absolute, unconditional and irrevocable obligation of the Company, and shall remain in
full force and effect until the first to occur of (i) all Obligations (other than contingent
obligations, such as those for indemnification) of the Borrower have been paid in full (ii) a
Qualifying Sale or Non-Qualifying Sale shall have occurred on the Closing Date; or (iii) the
Company shall have exercised the Put Option and all related obligations under the provisions of
Article IV have been satisfied. The Company may not rescind or revoke its obligations hereunder.
The liability of the Company under this Agreement shall be absolute, unconditional (except as
provided by the terms of this Agreement) and irrevocable irrespective of: (1) any lack of validity,
legality or enforceability of the Credit Agreement, the Note or any other Loan Document; (2) the
failure of Lender (a) to assert any claim or demand or to enforce any right or remedy against the
Borrower or any other Person under the provisions of the Credit Agreement, the Note, any other Loan
Document or otherwise, or (b) to exercise any right or remedy against any collateral securing, any
Obligations of the Borrower, (3) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Obligations of the Borrower, or any other extension, compromise or
renewal of any Obligations of the Borrower; (4) any reduction, limitation, impairment or
termination of any Obligations of the Borrower for any reason, including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to (and Company hereby
waives any right to or claim of) any defense or setoff,

 Page 5

 

counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality,
nongenuineness, irregularity, compromise, unenforceability of, or any other event or occurrence
affecting, any Obligations of the Borrower, or otherwise; (5) any amendment to, rescission, waiver,
or other modification of, or any consent to departure from, any of the terms of the Credit
Agreement, the Note or any other Loan Document; (6) any addition, exchange, release, surrender or
non-perfection of any collateral, or any amendment to or waiver or release or addition of, or
consent to departure from, any guaranty held by the Administrative Agent, Lender or any holder of
the Note securing any of the Obligations of the Borrower; (7) the insolvency or bankruptcy of, or
similar event affecting, the Borrower; or (8) any other circumstance which might otherwise
constitute a defense available to, or a legal or equitable discharge of, the Borrower. The Company
waives all rights and defenses which may arise with respect to any of the foregoing, and the
Company waives any right to revoke this Agreement with respect to future indebtedness.

     SECTION 2.6. Reinstatement. The Company agrees that this Agreement shall continue to
be effective or be reinstated, as the case may be, if at any time any payment (in whole or in part
and whether in cash or by issuance of Company Shares) of any of the Obligations is rescinded or
must otherwise be restored by the Administrative Agent, Lender or any holder of the Note, upon the
insolvency, bankruptcy or reorganization of Borrower, or otherwise, all as though such payment had
not been made.

     SECTION 2.7. Waiver, etc. The Company hereby waives promptness, diligence, notice of
acceptance and any other notice with respect to any of the Obligations of the Borrower and this
Agreement and any requirement that the Administrative Agent, the Lender or any holder of the Note
protect, secure, perfect or insure any security interest or Lien, or any property subject thereto,
or exhaust any right or take any action against the Borrower, or any collateral securing the
Obligations of the Borrower, as the case may be.

     SECTION 2.8. Waiver of Subrogation. Until the Obligations are paid in full or
satisfaction of the conditions specified in Section 2.3, and except for Borrower’s repayment of the
Intercompany Loans, which may occur at any time that this Agreement is in effect, the Company shall
not enforce or exercise any claim or other rights which it may now or hereafter acquire against the
Borrower that arise from the existence, payment, performance or enforcement of Company’s
obligations under this Agreement or any other Loan Document, including any right of subrogation,
reimbursement, exoneration, or indemnification, any right to participate in any claim or remedy of
the Administrative Agent or Lender against the Borrower or any collateral which the Administrative
Agent now has or hereafter acquires, whether or not such claim, remedy or right arises in equity,
or under contract, statute or common law, including the right to take or receive from the Borrower,
directly or indirectly, in cash or other property or by set-off or in any manner, payment or
security on account of such claim or other rights. If any amount shall be paid to Company in
violation of the preceding sentence, such amount shall be deemed to have been paid to Company for
the benefit of, and held in trust for, the Lender, and shall forthwith be paid to the
Administrative Agent for the benefit of the Lender by the Company to be credited and applied upon
the Obligations, whether matured or unmatured. Company acknowledges that it will receive direct
and indirect benefits from the financing arrangements contemplated by the Credit Agreement and that
the waiver set forth in this Section is knowingly made in contemplation of such benefits.

 Page 6

 

     SECTION 2.9. Payments Free and Clear of Taxes, etc. The Company hereby agrees that:

     (a) All payments by Company hereunder shall be made in accordance with Section 3.01 of the
Credit Agreement free and clear of and without deduction for any and all present or future taxes,
duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges, and all
liabilities with respect thereto; excluding, in the case of the Administrative Agent and the
Lender, taxes imposed on or measured by its net income (including any franchise taxes imposed on or
measured by its net income), by the jurisdiction (or any political subdivision thereof) under the
Laws of which the Administrative Agent or the Lender, as the case may be, is organized or maintains
its Lending Office (all such non-excluded taxes, duties, levies, imposts, deductions, assessments,
fees, withholdings or similar charges, and liabilities being hereinafter referred to as “Taxes”).
In the event that any withholding or deduction from any payment to be made by the Company hereunder
is required in respect of any Taxes pursuant to any applicable law, rule or regulation, then the
Company will (i) pay directly to the relevant authority the full amount required to be so withheld
or deducted; (ii) promptly forward to the Lender an official receipt or other documentation
satisfactory to the Lender evidencing such payment to such authority; and (iii) pay to the Lender
such additional amount or amounts as is necessary to ensure that the net amount actually received
by the Lender will equal the full amount the Lender would have received had no such withholding or
deduction been required. Moreover, if any Taxes are directly asserted against the Lender with
respect to any payment received by the Lender hereunder, the Lender may pay such Taxes and the
Company will promptly pay such additional amounts (including, if incurred as a result of the
Company’s or the Borrower’s action, omission or delay, any penalties, interest or expenses) as is
necessary in order that the net amount received by the Lender after the payment of such Taxes
(including any Taxes on such additional amount) shall equal the amount the Lender would have
received had such Taxes not been asserted.

     (b) If the Company fails to pay any Taxes when due to the appropriate taxing authority or
fails to remit to the Lender the required receipts or other required documentary evidence, the
Company shall indemnify the Lender for any incremental Taxes, interest or penalties that may become
payable by the Lender as a result of any such failure.

     (c) Without prejudice to the survival of any other agreement of the Company hereunder, the
agreements and obligations of the Company contained in this Section 2.9 shall survive the payment
in full of the principal of and interest on the Loan.

ARTICLE III

PROVISIONS RELATING TO COMPANY SHARES

     SECTION 3.1. Exercise of Option to Pay With Company Shares. As provided in Section
2.1 after delivery of a Company Share Payment Notice, the Company at its election may pay all or a
portion of the Amount of Loss by issuing to the Lender Company Shares. The amount of Company
Shares to be issued shall be calculated by taking the Amount of Loss to be paid using Company
Shares and dividing that amount by the average closing price of the Company’s publicly traded
common stock during the prior thirty (30) calendar day period before the date of the Company Share
Payment Notice. The resulting number, rounded up to the next whole number, is the number of
Company Shares to be issued to the Lender in full (or partial)

 Page 7

 

payment of the Amount of Loss. Upon receipt of the Company Share Payment Notice from the
Company of its election to pay all or a portion of the Amount of Loss in Company Shares, Lender
shall within two (2) Business Days prior to the Closing Date deliver a Notice of Registered Holder
in the form of Exhibit A hereto, identifying the person into whose name the Company Shares are to
be registered on the books of the Company (the “Notice of Registered Holder”).

     SECTION 3.2. Resale Registration Statement. Contemporaneously with the execution of
this Agreement, Lender and the Company shall enter into a Registration Rights Agreement granting to
Lender certain registration and other rights.

     SECTION 3.3. Certificate(s); No Fractional Shares. The Company shall, as promptly as
practicable, execute or cause to be executed and deliver to Lender or its nominee a certificate or
certificates representing the aggregate number of Company Shares specified in the Company Share
Payment Notice. The stock certificate or certificates so delivered shall be in such denominations
as may be specified by the Lender (or its nominee) and shall be registered in the name of Lender
(or such nominee) as specified in the Notice of Registered Holder. No fractional shares will be
issued pursuant to this Agreement.

     SECTION 3.4. Expenses. The Company shall pay all expenses, in connection with the
preparation, execution and delivery of stock certificates pursuant to this Agreement, except that,
in case such stock certificates are to be registered in a name or names other than the name of the
Lender, all stock transfer taxes payable upon the execution and delivery of such stock certificate
or certificates shall be paid by the Lender at the time of delivering the Notice of Registered
Holder described in Section 3.1 above. In such case, the Lender shall deliver with such notice
evidence, satisfactory to the Company, that such taxes have been paid.

     SECTION 3.5. Shares to be Fully Paid and Nonassessable. The Company covenants that
all Company Shares which may be issued in connection with this Agreement will be, upon issuance,
fully paid and nonassessable.

ARTICLE IV

PROVISIONS RE SALE PROCESS, PUT OPTION, AND PIPELINE SALE

     SECTION 4.1. Sale Process. Lender agrees and acknowledges that (i) the bid
solicitation and sale process being conducted by Robert W. Baird & Company, under agreement with
the Company (collectively, the “Sale Process”) for the sale of the Marcellus Assets (or for 100% of
the equity of Borrower) is an acceptable and reasonable process for generating indications of
interest and purchase offers with respect to the Marcellus Assets (or 100% of the equity of
Borrower); and (ii) in the event that the Sale Process fails to result in indications of interest,
written offers or a contract for a Qualifying Sale or for a Non-Qualifying Sale or any sale,
neither the Company, nor PESC, nor the Borrower shall be liable to Lender for such failure.

     SECTION 4.2. Proposed Non-Qualifying Sales; Put Option.

     (a) In the event that the Sale Process generates one or more written offers for a sale of the
Marcellus Assets or a sale of Borrower’s equity that would, if consented to and consummated,
constitute a Non-Qualifying Sale (a “Proposed Non-Qualifying Sale”), the

 Page 8

 

Company may or may cause Borrower (or PESC as applicable) to give written notice to Lender of
such offer(s) and provide Lender with a copy of such offer(s). Lender shall have ten (10) Business
Days to deliver its written consent to one or more of the Proposed Non-Qualifying Sales based upon
such offer(s) to Borrower, or to decline Lender’s consent to any or all such Proposed
Non-Qualifying Sales. If Lender timely delivers its written consent to one or more Proposed
Non-Qualifying Sales, the Company shall (or shall cause Borrower or PESC, as applicable to) use
commercially reasonable efforts to negotiate with the party or parties submitting offers to which
Lender has consented; provided however that neither the Company, nor PESC shall be required to make
representations and warranties in connection with any such negotiations (except a representation by
PESC to the effect that PESC owns, and has the right to convey, 100% of the equity interest of
Borrower in connection with a sale of such equity interest). Additional offers that would
constitute a Proposed Non-Qualifying Sale may be submitted by the Company to the Lender at any
time. The Company shall (or shall cause Borrower or PESC, as applicable to) use its commercially
reasonable efforts to consummate a Proposed Non-Qualifying Sale (or another Qualifying Sale, as the
case may be) that maximizes the value of the Marcellus Assets or Borrower’s equity, as the case may
be, provided however that neither the Company nor PESC shall be required to make representations
and warranties in connection with any such sale (except a representation by PESC to the effect that
PESC owns, and has the right to convey, 100% of the equity interest of Borrower in connection with
a sale of such equity interest).

     (b) In the event that (i) Lender does not timely consent to a Proposed Non-Qualifying Sale;
(ii) a Qualifying Sale or Non-Qualifying Sale fails to close after the parties to such sale enter
into a contract and such contract is terminated; (iii) no written offer is received as a result of
the Sale Process on or before December 1, 2010; or (iv) no Qualifying Sale or Non-Qualifying Sale
has closed on or before December 21, 2010 (each event specified in foregoing clauses (i)-(iv), a
“Put Exercise Circumstance”), the Company and PESC shall be entitled, upon ten (10) calendar days
written notice to Lender, given at any time on or after the occurrence of a Put Exercise
Circumstance, to require that Lender receive PESC’s transfer of (and PESC shall so transfer) 100%
of the equity in Borrower to Lender in full satisfaction of all of Obligations owed to Lender and
the Company’s obligations hereunder (the “Put Option”); provided, however, if the Put Option is
exercised, for purposes of this Agreement such exercise will trigger an Amount of Loss equal to
$7,500,000 minus the amount of any Intercompany Loans. Such Amount of Loss shall be payable on the
date the transfer of 100% of the equity in Borrower to Lender occurs. Any Put Transfer shall be
made as is and without any representations and warranties from PESC other than that PESC owns, and
has the right to convey to Lender, 100% of the equity interest in Borrower. Upon the Company’s
exercise of the Put Option, Lender shall take all actions necessary to facilitate the Put Transfer,
including without limitation, receiving the books and records of Borrower, joining in the limited
liability agreement of Borrower, and signing an assignment of such equity interest or completing
any power relating to such equity interest in Borrower.

     (c) In the event that the Put Option is exercised and the Put Transfer occurs, the Company
agrees to assist, and to cause PESC to assist, Lender with respect to clearing title as to the
Marcellus Assets in connection with Lender’s sale of the Marcellus Assets or of 100% of the equity
interest in Borrower.

 Page 9

 

     (d) In the event that Lender becomes the owner of the equity in Borrower as a result of
Company’s or PESC’s exercise of the Put Option resulting in a Put Transfer, Lender acknowledges and
agrees that the Operating Agreement set forth in Exhibit B (the “Current Operating Agreement”) will
be terminated by Quest Cherokee, LLC (or its successor by merger). The Company, at Lender’s option
(and provided that PMP is a licensed operator at that time), shall cause PMP to enter into the
Operating Agreement set forth in Exhibit C (the “New Operating Agreement”) and PMP shall operate
the wells owned by Borrower that are part of the Marcellus Assets until the earlier of (i) the date
upon which Borrower no longer owns such wells; or (ii) six (6) months from the date that Lender
becomes the owner of the equity in Borrower.

     SECTION 4.3. Marcellus Pipeline Sale.

     (a) As to any Qualifying Sale or Non-Qualifying Sale, Borrower shall be entitled to contract
with a buyer of the Marcellus Assets even if such buyer does not contract to buy the QC Marcellus
Assets contemporaneously therewith. In the event that Borrower contracts with a buyer on such
terms, Borrower shall be entitled to exclude the Marcellus Pipeline from the Marcellus Assets to be
sold.

     (b) In the event that (i) a Qualifying Sale or Non-Qualifying Sale occurs but the QC Marcellus
Assets are not sold contemporaneously with such Qualifying Sale or Non-Qualifying Sale; or (ii) the
Company or PESC exercise the Put Option ((i) and (ii) collectively, the “Pipeline Sale
Circumstances”, singly a “Pipeline Sale Circumstance”), Lender agrees that Borrower may sell the
Marcellus Pipeline to PESC or its designee (and that Lender shall cause Borrower to sell the
Marcellus Pipeline to PESC or its designee if Lender is the owner of Borrower as a result of
Company’s or PESC’s exercise of the Put Option), in either case for a purchase price of $2,300,000
(the “Pipeline Purchase Price”). In the case of a Pipeline Sale Circumstance arising under clause
(i), such sale of the Marcellus Pipeline shall occur on the Closing Date. In the case of a
Pipeline Sale Circumstance arising under clause (ii), such sale of the Marcellus Pipeline shall
occur as soon as practicable but in any event no later than ten (10) Business Days from the date
that the Company or PESC exercises the Put Option. Lender agrees to take commercially reasonable
action necessary to facilitate such sale of the Marcellus Pipeline; provided however, the Marcellus
Pipeline will be sold as is and without any representations or warranties from Lender.

     (c) The Pipeline Purchase Price constitutes the release price to be paid to Lender to release
its liens on the Marcellus Pipeline. Any Intercompany Loans will be credited against the Pipeline
Purchase Price, and any balance of the Pipeline Purchase Price shall be paid in cash.

     SECTION 4.4. Intercompany Loans. Lender irrevocably agrees that before any amount is
paid to Lender (whether for principal, interest, fees, expenses, or otherwise) in connection with a
Qualifying Sale or a Non-Qualifying Sale, all Intercompany Loans will be repaid in full with
proceeds from such Qualifying Sale or Non-Qualifying Sale, before any amounts are paid to Lender.

 Page 10

 

ARTICLE V

MISCELLANEOUS PROVISIONS

     SECTION 5.1. Loan Document. This Agreement is a Loan Document executed pursuant to
the Credit Agreement and shall (unless otherwise expressly indicated herein) be construed,
administered and applied in accordance with the terms and provisions thereof.

     SECTION 5.2. Successors and Assigns. This Agreement benefits the Lender, and its
respective successors and assigns and binds the Company and its successors and assigns. The rights
of the Lender under this Agreement may be transferred with any assignment of the Loan pursuant to
and in accordance with the terms of the Credit Agreement. The Credit Agreement contains provisions
governing assignments of the Loan.

     SECTION 5.3. Amendments, etc. No amendment to or waiver of any provision of this
Agreement, nor consent to any departure by the Company herefrom, shall in any event be effective
unless the same shall be in writing and signed by or on behalf of the party against whom it is
sought to be enforced and is in conformity with the requirements of Section 10.01 of the Credit
Agreement. Each such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given.

     SECTION 5.4. Addresses for Notices to the Company. All notices and other
communications hereunder to the Company shall be in writing and mailed or delivered to it,
addressed to it at the address set forth below or at such other address as shall be designated by
the Company in a written notice to the Administrative Agent at the address specified in the Credit
Agreement complying as to delivery with the terms of this Section. All such notices and other
communications shall, when mailed, be effective when deposited in the mail, addressed as aforesaid.
The Company’s address for notices is:

210 Park Avenue, Suite 2750

Oklahoma City, Oklahoma 73102

Attn: Chief Executive Officer

Facsimile: (405) 702-7487

Telephone: (405) 702-7756

     SECTION 5.5. No Waiver; Remedies. In addition to, and not in limitation of, Section
2.7, no failure on the part of the Lender or any holder of a Note to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof or the exercise of
any other right. The remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

     SECTION 5.6. Section Captions. Section captions used in this Agreement are for
convenience of reference only, and shall not affect the construction of this Agreement.

     SECTION 5.7. Severability. Wherever possible, each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be prohibited by or invalid under such law, such provision

 Page 11

 

shall be ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

     SECTION 5.8. Fees and Expenses. Each party shall bear its own attorney’s fees, court
costs and related expenses (the “Fees and Expenses”) in connection with its enforcement of this
Agreement; provided however, the prevailing party in any lawsuit or other action shall have the
right to payment of its reasonable out-of-pocket fees and expenses by the other party.

     SECTION 5.9. Specific Performance. Lender recognizes and acknowledges that a breach
by it of any covenants or agreements contained in this Agreement will cause the Company to sustain
damages for which the Company would not have an adequate remedy at law for money damages, and
therefore Lender agrees that in the event of any such breach, the Company shall be entitled to the
remedy of specific performance of such covenants and agreements and injunctive and other equitable
relief in addition to any other remedy to which the Company may be entitled, at law or in equity.

     SECTION 5.10. Governing Law.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE.

     (b) EACH OF THE COMPANY AND THE LENDER AGREES ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO
THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF NEW
YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK AND APPELLATE COURTS FROM ANY
THEREOF, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE COMPANY AND THE LENDER
CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE
COURTS. THE COMPANY (1) IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF
VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT, AND (2)
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH
ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED,
POSTAGE PREPAID, AT ITS ADDRESS FOR NOTICES DESIGNATED HEREIN. EACH OF THE COMPANY AND THE LENDER
WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER
MEANS PERMITTED BY THE LAW OF SUCH STATE.

     SECTION 5.11. Waiver of Jury Trial, Etc. EACH OF THE COMPANY AND THE LENDER HEREBY
(a) EXPRESSLY AND IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION ARISING UNDER THIS AGREEMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE;
AND EACH OF THE COMPANY

 Page 12

 

AND THE LENDER HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT THE COMPANY, THE ADMINISTRATIVE
AGENT OR THE LENDER, AS THE CASE MAY BE, MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION
WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE LENDER OR THE COMPANY, AS THE CASE MAY BE,
TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY; AND (b) EXPRESSLY AND IRREVOCABLY WAIVES, TO THE
MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH ACTION
ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION
TO, ACTUAL DAMAGES; PROVIDED THAT THE WAIVER CONTAINED IN THIS SECTION 5.11 SHALL NOT APPLY TO THE
EXTENT THAT THE PARTY AGAINST WHOM DAMAGES ARE SOUGHT HAS ENGAGED IN GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT.

     SECTION 5.12. Entire Agreement. THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK

SIGNATURES BEGIN ON NEXT PAGE.]

 Page 13

 

     IN WITNESS WHEREOF, Company and Lender have caused this Agreement to be duly executed and
delivered by an officer duly authorized as of the date first above written.

	 	 	 	 	 
	 	POSTROCK ENERGY CORPORATION,

a Delaware corporation,

as Company

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

ROYAL BANK OF CANADA

	 	 	 	 	 

	By:

	 	/s/ Leslie P. Vowell
 

Leslie P. Vowell
	 	 
	 

	 	Attorney-in-Fact	 	 

Signature Page

 

Exhibit A

FORM OF NOTICE OF REGISTERED HOLDER

     The undersigned, Royal Bank of Canada, the “Lender” described in that certain Asset Sale
Agreement dated as of September [__], 2010 among PostRock Energy Corporation (the “Company”), Royal
Bank of Canada, as administrative agent and collateral agent, and Royal Bank of Canada, as lender
(the “Agreement”), hereby instructs the Company to issue the Company Shares (as defined in the
Agreement) as follows:

     Please issue the certificate for the Company Shares in the name of and in the following
denominations:

 

Denominations

 

Print or type name

 

Social Security or Employer Identification Number

 

Street Address

	 	 	 	 	 

	 
	City
	 	State
	 	Zip Code

ROYAL BANK OF CANADA

	 	 	 	 	 

	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

Date:
                                                            ,
          

 Exhibit A

 

Exhibit B

CURRENT OPERATING AGREEMENT

Exhibit B

 

Exhibit C

NEW OPERATING AGREEMENT

Exhibit C

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]