Document:

Exhibit

EXECUTION VERSION
Exhibit 10.74

UNIT PURCHASE AGREEMENT
(Class A Preferred Units and Class A Units) 
THIS UNIT PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of this 22nd day of February, 2016, by and among Laramie Energy, LLC, a Delaware limited liability company (f/k/a Piceance Energy, LLC,) (the “Company”), and the parties listed in Schedule I attached hereto (each, an “Investor”).
RECITALS:
		
	A.
	The Company was formed on May 10, 2012, with Laramie Energy II, LLC, a Delaware limited liability company (“Laramie II”), as the sole member, and effective December 23, 2015, the Company's name was changed from Piceance Energy, LLC to Laramie Energy, LLC.

		
	B.
	The Limited Liability Company Agreement of the Company has been amended by that certain (i) Amended and Restated Limited Liability Company Agreement for the Company dated as of August 31, 2012, (ii) Amendment No 1 to the First Amended and Restated Company Agreement, dated March 9, 2015, (iii) Second Amended and Restated Limited Liability Company Agreement of the Company dated July 27, 2015, (iv) Amendment No. 1 to the Second Amended and Restated Company Agreement dated July 31, 2015, and (v) Amendment No. 2 to the Second Amended and Restated Company Agreement dated August 28, 2015.

		
	C.
	Contemporaneously herewith, Laramie II, Par Piceance Energy Equity LLC, a Delaware limited liability company (“Par”), Wells Fargo Central Pacific Holdings, Inc., a California corporation (“Well Fargo”), Robert S. Boswell, an individual (“Boswell”), ACP LE, L.P., a Delaware limited partnership (“ACP”), ACP LE (Offshore), L.P., a Delaware limited partnership (“ACP Offshore” and together with ACP, the “Avista Parties”), Laram Holdings II, LLC, a Delaware limited liability company (“Laram”), DLJ Merchant Banking Partners IV, L.P., a Delaware limited partnership (“DLJ IV” and together with Laram, the “DLJ IV Parties”), Mesa Piceance LLC, a Delaware limited liability company ("Mesa"), Laramie Energy Employee Holdings, LLC, a Delaware limited liability company (f/k/a Piceance Energy Employee Holdings, LLC) (the "Incentive Member") and Steven A. Webster, an individual (“Webster"), are executing and delivering that certain Third Amended and Restated Limited Liability Company Agreement of the Company (the "Third Amended and Restated Company Agreement"). 

		
	D.
	Under the Third Amended and Restated Company Agreement, (i) Webster will be admitted to the Company as an additional member, (ii) Wells Fargo will make a cash capital contribution to the Company in the amount of $30,000,000 (the "Capital Contribution - Class A Preferred"), in exchange for Class A Units (the "Wells Fargo Class A Units") and Class A Preferred Units (the "Wells Fargo Class A Preferred Units"), pursuant to this Agreement, and as specified in the Third Amended and Restated Company Agreement, and (iii) Par, the DLJ IV Parties and Webster shall make cash capital contributions to the Company 

aggregating $70,000,000 (the "Capital Contribution - Class A"), in exchange for Class A Units (the "Par / DLJ IV / Webster Class A Units", and together with the Wells Fargo Class A Units and the Wells Fargo Class A Preferred Units, the "Subject Units"), pursuant to this Agreement, and as specified in the Third Amended and Restated Company Agreement  
		
	E.
	In order to induce (i) Laramie II, Par, Wells Fargo, Boswell, the Avista Parties, the DLJ IV Parties and Webster to execute and deliver the Third Amended and Restated Company Agreement, (ii) Wells Fargo to make the Capital Contribution - Class A Preferred, and (iii) Par, the DLJ IV Parties and Webster to make the Capital Contribution - Class A, the Company deems it in its best interests to enter into this Agreement with Wells Fargo, Par, the DLJ IV Parties and Webster to make the covenants, representations and warranties set forth herein.

		
	F.
	Laramie II, Par, Wells Fargo, Boswell, the Avista Parties, the DLJ IV Parties and Webster would not be willing to execute and deliver the Third Amended and Restated Company Agreement, Wells Fargo would not be willing to make the Capital Contribution - Class A Preferred, and Par, the DLJ IV Parties and Webster would not be willing to make the Capital Contribution - Class A in the absence of this Agreement and the Company’s covenants, representations and warranties set forth herein.

AGREEMENT:
1.Defined Terms.  Except as otherwise provided below, terms used herein and not otherwise defined shall have the meanings ascribed to such term in the Third Amended and Restated Company Agreement.  In the event of any inconsistency between defined terms in this Agreement and the Third Amended and Restated Company Agreement, this Agreement shall control.  When used in this Agreement, the following terms shall have the meanings assigned to them below:
"ACP" has the meaning assigned to such term in Recital C.
"ACP Offshore" has the meaning assigned to such term in Recital C.
“Affiliate” means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.
“Avista Parties” has the meaning assigned to it in Recital B. 
“Boswell” has the meaning assigned to in Recital C.
"Capital Contribution - Class A" has the meaning assigned to in Recital D.
"Capital Contribution - Class A Preferred" has the meaning assigned to in Recital D.
“Class A Units” has the meaning set forth in the Third Amended and Restated Company Agreement.

2

“Class A Preferred Units” has the meaning set forth in the Third Amended and Restated Company Agreement.
“Closing Date” means the date specified Section 3.1(b) of the Third Amended and Restated Company Agreement in connection with the purchase and sale of Subject Units.
“Commission” means the United States Securities and Exchange Commission.  “Company” has the meaning assigned to it in the preamble.
“Contractual Obligation” means, as to the Company, any agreement, instrument or other undertaking to which the Company is a party or by which it or any of its property is bound.
“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.
“Credit Facility” means that certain $400,000,000 secured revolving credit facility, as amended, with J.P. Morgan Securities and Wells Fargo Securities LLC, each as an arranger, JP Morgan Chase Bank, N.A., as the administrative agent, and the lenders that are parties thereto.
"DLJ IV" has the meaning assigned to such term in Recital C.
“DLJ IV Parties” has the meaning assigned to it in Recital B.
“Environmental Laws” means any and all federal, state, local, and foreign statutes, Laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
“Financial Statements” means (i) the audited consolidated balance sheet of the Company as of December 31, 2014, and (ii) the unaudited consolidated balance sheet of the Company as prepared by the Company as of December 31, 2015, and the related consolidated statements of income or operations, and cash flows for such fiscal year of the Company, including the notes thereto.
“GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time.
“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank.

3

"Incentive Member" has the meaning assigned to it in Recital C.
“Investment Company” has the meaning set forth in the Investment Company Act.
“Investment Company Act” means the Investment Company Act of 1940, as the same may be amended from time to time.
“Investor” has the meaning assigned to it in the preamble. 
"Laram" has the meaning assigned to such term in Recital C.
“Laramie II” has the meaning assigned to it in Recital A.
“Latest Reserve Report” means the most recent engineering report the Company has previously furnished to Wells Fargo.
“Laws” means, collectively, all international, foreign, federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law.
“Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing).
“Material Adverse Effect” means, with respect to the Company, a material adverse change in, or a material adverse effect upon, the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of the Company; provided, however, that with respect to matters relating to (i) changes in the oil and gas exploration and production industry in general, including oil and gas prices, (ii) changes in economic or political conditions or the financing, banking, currency or capital markets in general and (iii) any natural disaster or any act of terrorism, sabotage, military action, armed hostilities or war (whether or not declared) or any escalation or worsening thereof, whether or not occurring or commenced before or after the date of this Agreement, each such matter described in the foregoing clauses (i), (ii) and (iii) shall not be deemed to constitute a “Material Adverse Effect” and shall not be considered in determining whether a “Material Adverse Effect” has occurred.
"Mesa" has the meaning assigned to it in Recital C.
“Mineral Interests” means (i) all present and future interests and estates existing under any oil and gas leases including working interests, royalties, overriding royalties, production payments and net profits interests, (ii) all present and future rights in mineral fee interests and rights therein, 

4

including any reversionary or carried interests relating thereto, (iii) all rights, titles and interests created by or arising under the terms of all present and future unitization, communitization, and pooling arrangements (and all properties covered and units created thereby) whether arising by contract or operation of Law which now or hereafter include all or any part of the foregoing, and (iv) all rights, remedies, powers and privileges with respect to all of the foregoing.
“OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.
“Organizational Documents” means, (i) the Company’s certificate formation or organization and operating agreement; and (ii) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.
“Par” has the meaning assigned to in Recital C.
"Par / DLJ IV / Webster Class A Units" has the meaning assigned to in Recital D. 
“Person” means any individual, corporation, general partnership, limited partnership, limited liability partnership, joint venture, association, joint-stock company, trust, limited liability company, unincorporated organization or government or any agency or political subdivision thereof
“Plan” means an employee benefit plan, as defined in Section 3(2) of ERISA, which (i) is maintained, administered, or contributed to by the Company and (ii) covers any employee or former employee of the Company or under which the Company has or could have any liability.
“Sanctioned Entity” means (i) an agency of the government of, (ii) an organization directly or indirectly controlled by, or (iii) a Person resident in a country that is subject to a sanctions program identified on the list maintained by OFAC and available at http://www.treas.gov/offices/eotffc/ofac/ sanctions/index.html, or as otherwise published from time to time as such program may be applicable to such agency, organization or Person.
“Sanctioned Person” means a person named on the list of Specially Designated Nationals Or Blocked Persons maintained by OFAC available at http://www.treas.gov/offices/eotffc/ofac/sdn/index.html, or as otherwise published from time to time.
“Securities Act” means the Securities Act of 1933, as amended.
“Solvent” means, as to any Person at any time, that (i) the fair value of the property of such Person is greater than the total amount of such Person’s liabilities (including contingent liabilities), (ii) the present fair saleable value of all of the property of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (iii) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature, and (iv) such 

5

Person is able to pay its debts and liabilities, contingent obligations and other commitments as they mature in the ordinary course of business.  The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.
“Subject Units” has the meaning assigned to such term in Recital D.
“Subsidiary” of a Person means a corporation, partnership, limited liability company or other business entity of which a majority of the equity interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Company.
"Third Amended and Restated Company Agreement" has the meaning assigned to such term in Recital C.
“Units” has the meaning set forth in the Third Amended and Restated Company Agreement.
"Webster" has the meaning assigned to such term in Recital C.
"Wells Fargo" has the meaning assigned to such term in Recital C.
"Wells Fargo Class A Preferred Units" has the meaning assigned to such term in Recital D.
"Wells Fargo Class A Units" has the meaning assigned to such term in Recital D.
2.    Representations and Warranties of the Company.  The Company hereby represents and warrants to the Investors that:
(a)    Existence, Qualification and Power; Compliance with Laws.  The Company (i) is duly organized, validly existing and in good standing under the Laws of the state of Delaware; (ii) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (A) own or lease its assets and carry on its business and (B) execute, deliver and perform its obligations under this Agreement: and (iii) is duly qualified and is licensed and in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license; except in each case referred to in clause (ii)(A) or clause (iii) above, to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.
(b)    Authorization; No Contravention.  The execution, delivery and performance by the Company of this Agreement have been duly authorized by all necessary limited liability company action, and do not and will not (i) contravene the terms of any of the Company’s Organization Documents; (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (A) any Contractual 

6

Obligation or (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Company or its property is subject; or (iii) violate any Law binding upon the Company.
(c)    Binding Effect.  This Agreement has been duly executed and delivered by the Company.  This Agreement constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except: (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting enforcement of creditors’ rights general; and (ii) as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies.
(d)    Financial Statements.  The Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and (ii) fairly present the financial condition of the Company as of the date thereof and their results of operations for the period covered thereby, except as otherwise expressly noted therein.
(e)    Absence of Undisclosed Liabilities; Absence of Certain Changes.  The Company has no liabilities or obligations (whether accrued, absolute, contingent, unliquidated, or otherwise, whether or not known to the Company, and whether due or to become due), except (i) liabilities reflected on the Financial Statements (including the notes thereof), (ii) liabilities which have arisen since the date of the Financial Statements in the ordinary course of business (none of which is a material liability for breach of contract, breach of warranty, tort, or infringement), (iii) liabilities arising under executory contracts entered into in the ordinary course of business (none of which is a material liability for breach of contract), and (iv) other liabilities which, in the aggregate, are not material to the Company.  Since the date of the Financial Statements, there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect.
(f)    No Default.  The Company is not in default under or with respect to any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  No default under the Credit Facility has occurred and is continuing that has not been waived and no default would result from the consummation of the transactions contemplated by this Agreement.
(g)    Ownership of Property; Liens.  The Company has good record and defensible title to the Mineral Interests evaluated in the Latest Reserve Report, except for (i) Liens created or permitted under the Credit Facility and (ii) except for such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  The Company has good title to the personal property used in the ordinary conduct of its business, except for such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  The property of the Company is subject to no Liens, other than the Liens created or permitted under the Credit Facility.

7

(h)    Compliance With Laws.  The Company is in compliance with all applicable Laws, including applicable Environmental Laws, except for such non-compliance as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(i)    Taxes.  All material federal, state and other tax returns and reports required to be filed by or with respect to the Company have been duly and timely filed, and all material federal, state and other taxes, assessments, fees and other governmental charges owed by the Company or for which the Company may be liable that have become due and payable have been paid in full, except those that are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP.  There is no proposed tax assessment against the Company that would, if made, have a Material Adverse Effect.  There are no Liens (other than Liens for current period taxes that are not yet due and payable) on any of the assets of the Company that arose in connection with any failure (or alleged failure) to pay any tax, assessment, fee and other governmental charge in the nature of a tax.
(j)    Subsidiaries.  As of date hereof, the Company has no Subsidiaries.  The Company has no equity investments in any other corporation or entity.
(k)    Margin Regulations; Investment Company Act.  The Company is not engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying margin stock.  None of the Company or any Person Controlling the Company is or is required to be registered as an Investment Company.  The Company is not an entity that would be an Investment Company but for the exclusions in Section 3(c)(1) and/or Section 3(c)(7) of the Investment Company Act.
(l)    Compliance with Securities Laws.  Subject to the representations of the Investors set forth in Section 4 being true and accurate, the issuance of the Subject Units contemplated by this Agreement and the Third Amended and Restated Company Agreement is in compliance with all state and federal securities Laws.
(m)    Capitalization.  As of the date of this Agreement and prior to the issuance and sale of the Subject Units pursuant to this Agreement, the ownership of the Company’s Units is set forth on Schedule 2(m).  All of the issued and outstanding Units have been duly authorized and validly issued in accordance with the Organizational Documents of the Company and are fully paid and nonassessable and were not issued in violation of any preemptive rights, rights of first refusal or other similar rights of any Person.  All rights and obligations of and terms and conditions governing the Units and any rights to acquire Units are set forth in the Third Amended and Restated Company Agreement, and there are no other agreements or instruments relating thereto.  The issuance and sale of the Subject Units will not be issued in violation of any preemptive rights, rights of first refusal or other similar rights of any Person, and will be free of any and all Liens and restrictions on transfer, except for any Liens or restrictions on transfer that may be imposed by reason of the Delaware General Corporation Law or any state or federal securities Law.

8

(n)    Transactions with Affiliates.  Other than the purchase of Subject Units contemplated hereby and the Third Amended and Restated Company Agreement, there are no transactions (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate or Covered Person, nor are there any arrangements or understandings, regardless of whether such arrangement has been formalized, whereby services or the sale of any property are provided to an Affiliate or Covered Person on terms more favorable than that provided to the Company for similar services nor does any Affiliate or Covered Person provide the Company or any subsidiary of the Company with services related to the gathering and processing of hydrocarbons.
(o)    Broker’s Fee.  No broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Company.
(p)    OFAC.  Neither the Company nor, to the Company’s knowledge, any Affiliate of the Company: (a) is a Sanctioned Person, (b) owns assets in Sanctioned Entities, or (c) derives its operating income from investments in, or transactions with Sanctioned Persons or Sanctioned Entities.  None of the proceeds from the issuance of Units by the Company will be used or have been used to fund any operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity.
(q)    Solvency.  Both before and after giving effect to the transactions contemplated hereby, the Company is Solvent.
(r)    ERISA.  All Plans are and have been administered in compliance with their terms and applicable Laws, including ERISA, except for such non-compliance as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  No Plan is a “multi-employer” plan as defined in Section 3(37) of ERISA.
3.    Covenants of the Company.  The Company hereby covenants and agrees: (a) (i) to use commercially reasonable efforts to maintain its status as not being an entity that would be an Investment Company but for the exclusions in section 3(c)(1) and/or section 3(c)(7) of the Investment Company Act, (ii) upon written request by Wells Fargo at any time, promptly (but in any event within ten (10) business days) provide Wells Fargo with written certification of such status (or if such certification cannot be delivered, a written explanation of the reasons why), and (iii) if at any time the Company becomes aware that this status has not been maintained, promptly (but in any event within three (3) business days) deliver written notice to Wells Fargo of that fact together with an explanation of the reasons why the status has not been maintained; and (b) upon written request by Wells Fargo at any time, promptly (but in any event within ten (10) business days), provide Wells Fargo with sufficient information regarding the nature of the Company’s assets to allow Wells Fargo to assess the Company’s status under the Investment Company Act.
4.    Representations and Warranties of the Investors.  Each Investor severally but not jointly or jointly and severally, represents and warrants solely with respect to itself to the Company and to the other Investors that:

9

(a)    Investment Matters.
(i)    Such Investor is acquiring the Subject Units solely for its beneficial account, for investment purposes, and not with a view to, or for resale in connection with, any distribution of Subject Units in violation of applicable securities Laws;
(ii)    Such Investor understands that the Subject Units have not been registered under the Securities Act or any state securities Laws by reason of specific exemptions under the provisions thereof, the availability of which depend in part upon the bona fide nature of its investment intent and upon the accuracy of its representations made in this Section 4;
(iii)    Such Investor understands that the Company is relying in part upon the representations and agreements contained in this Section 4 for the purpose of determining whether the offer, sale and issuance of the Subject Units meets the requirements for such exemptions;
(iv)    Such Investor is an “accredited investor” as defined in Rule 501(a) under the Securities Act;
(v)    Such Investor has such knowledge, skill and experience in business, financial and investment matters that it is capable of evaluating the merits and risks of an investment in the Subject Units to which it is subscribing;
(vi)    Such Investor understands that the Subject Units will be “restricted securities” under applicable federal securities Laws and that the Securities Act and the rules of the Commission provide in substance that it may dispose of the Securities only pursuant to an effective registration statement under the Securities Act or an exemption therefrom, and it understands that the Company has no obligation or intention to register any of the Subject Units thereunder; and
(vii)    Such Investor has been furnished by the Company all information (or provided access to all information) regarding the business and financial condition of the Company, its expected plans for future business activities, the attributes of the Subject Units for which such Investor is subscribing and the merits and risks of an investment in such Subject Units which it has requested or otherwise needs to evaluate the investment in such Subject Units; that in making the proposed investment decision, such Investor is relying solely on such information, the representations, warranties and agreements of each other Investor and the Company and on investigations made by it and its representatives; and that the offer to sell the Subject Units hereunder was communicated to such Investor in such a manner that it was able to ask questions of and receive answers from the management of the Company concerning the terms and conditions of the proposed transaction and that at no time was it presented with or solicited by or through any leaflet, public promotional meeting, television advertisement or any other form of general or public advertising or solicitation.

10

(b)    Authority.
(i)    Such Investor has full power and authority to enter into and perform its obligations under this Agreement and the Third Amended and Restated Company Agreement; and
(ii)    This Agreement and the Third Amended and Restated Company Agreement have been duly authorized, executed and delivered by a Person authorized to do so, constitute the legal, valid and binding obligations of such Investor, except as may be affected (i) by bankruptcy, insolvency, moratorium, reorganization and other similar Laws and judicial decisions affecting the rights of creditors generally and (ii) by general principles of equity and public policy (regardless of whether considered at Law or in equity), is enforceable against such Investor in accordance with its terms.
(c)    No Conflicts.  The execution, delivery and performance by such Investor of this Agreement and the Third Amended and Restated Company Agreement hereby and thereby will not, without the giving of notice or the lapse of time, or both, (i) violate any provision of Law to which such Investor is subject, or (ii) with respect to any Investor which is not a natural person, conflict with, or result in a breach or default under, any term or condition of its Organizational Documents or any agreement or other instrument to which such Investor is a party or by which such Investor is bound.
(d)    Brokers Fee.  No broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of such Investor.
5.    Closing Conditions to Issuance and Purchase of Subject Units.
(a)    The Company’s obligation to issue and sell the Subject Units to be issued and sold and by it hereunder on a given Closing Date is subject to the satisfaction or waiver, on or before such Closing Date, of the conditions contained in this Section 5(a):
(iii)    No later than four (4) business days prior to the Closing of the transactions contemplated under the OXY Purchase and Sale Agreement, each Investor shall have tendered to the Company the cash purchase price for the Subject Units to be issued to such Investor pursuant to and in accordance with Section 3.1(b) of the Third Amended and Restated Company Agreement; provided, that, such cash purchase price shall be used by the Company solely for the transactions contemplated by the OXY Purchase and Sale Agreement, and to the extent that the Closing (as defined in the OXY Purchase and Sale Agreement) does not occur within ten (10) days following the date that such cash purchase price is tendered to the Company, then the Company shall reimburse such cash purchase price to each Investor, as applicable, and the Subject Units shall not be issued and sold.

11

(iv)    The representations and warranties of the Investors contained in this Agreement shall be true and correct in all respects at and as of the subject Closing Date, as if made at and as of such date (except that representations and warranties made as of a specific date need be true only as of that date).
(v)    The Investors shall have performed in all material respects all of their respective obligations under this Agreement required to be performed by them on or prior to the subject Closing Date.
(b)    Each Investor’s obligation to purchase the Subject Units to be issued and sold to them hereunder on a given Closing Date is subject to the satisfaction or waiver, on or before such Closing Date, of the conditions contained in this Section 5(b):
(i)    The representations and warranties of the Company contained in this Agreement shall be true and correct in all respects at and as of the subject Closing Date, as if made at and as of such date (except that representations and warranties made as of a specific date need be true only as of that date); provided, however, that this condition shall be satisfied with respect to any representation or warranty that does not contain qualifications or limitations relating to materiality or Material Adverse Effect so long as such representation or warranty is true and correct in all material respects at and as of such date (or as of such specified date), as if made at and as of such date (except to the extent such representations specifically relate to an earlier date, in which case such representations shall be true and correct as of such earlier date).
(ii)    The Company shall have performed in all material respects all of its obligations under this Agreement and all material obligations under the Third Amended and Restated Company Agreement required to be performed by it on or prior to such Closing Date.
(iii)    The Investors shall have received a Certificate of the Board of Managers dated as of the given Closing Date certifying that each of the conditions set forth in paragraphs (i) and (ii) above have been satisfied.
(iv)    The acquisition and other transactions contemplated by the OXY Purchase and Sale Agreement (as in effect on the date hereof) shall have been consummated or will be consummated substantially concurrently with, but not later than ten (10) days after the date that the Investors have tendered to the Company the cash purchase price for the Subject Units pursuant to Section 5 (a)(i) above.
(v)    Subject to the satisfaction of the conditions specified in paragraphs (i), (ii), (iii) and (iii) above, each Investor shall have tendered to the Company the cash purchase price for the Subject Units to be issued to such Investor pursuant to and in accordance with Section 3.1(b) of the Third Amended and Restated Company Agreement.

12

6.    Public Disclosure.  Any public announcements regarding the terms of this Agreement or the Third Amended and Restated Company Agreement or the transactions contemplated hereby and thereby, or the financial performance of the Company shall be made only with the mutual consent of all Investors, which consent shall not be unreasonably withheld or delayed, except as may be required, and to the extent required, by applicable Law or stock exchange regulations, in which case the Investor required to issue the public announcement shall allow the other Investors reasonable time to comment on such release or statement in advance of its issuance.
7.    Survival of Agreements.  All covenants, agreements, representations and warranties made in this Agreement or in the Third Amended and Restated Company Agreement or any certificate or instrument delivered to the Investors pursuant to or in connection with this Agreement or the Third Amended and Restated Company Agreement shall survive indefinitely the execution and delivery of this Agreement and the Third Amended and Restated Company Agreement, the issuance, sale and delivery of the Subject Units, and all statements contained in any certificate or other instrument delivered by the Company hereunder or thereunder or in connection herewith or therewith shall be deemed to constitute representations and warranties made by the Company.
8.    Parties In Interest.  All representations, warranties, covenants and agreements contained in this Agreement or in the Third Amended and Restated Company Agreement by or on behalf of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of such parties whether so expressed or not.  Without limiting the generality of the foregoing, all representations, covenants and agreements benefiting the Investors shall inure to the benefit of any and all subsequent holders from time to time of Subject Units.  Nothing in this Agreement shall create or be deemed to create any third-party beneficiary rights in any Person not a party to this Agreement except as provided below.
9.    No Assignments.  No Investor may assign its rights and obligations hereunder to purchase Subject Units without the express written consent of all Investors.
10.    Further Assurances.  The parties agree to take such actions and execute and deliver such other documents or agreements as may be necessary or desirable for the implementation of this Agreement and the Third Amended and Restated Company Agreement and the consummation of the transactions contemplated hereby and thereby.
11.    Governing Law.  This Agreement and the performance of the transactions and the obligations of the parties hereunder will be governed by and construed and enforced in accordance with the Laws of the State of Delaware, without giving effect to any choice of Law principles.
12.Entire Agreement.     This Agreement and the Third Amended and Restated Company Agreement, together with the certificates, documents, instruments and writings that are delivered pursuant thereto, constitute the entire agreement and understanding of the parties hereto in respect of its subject matters and supersedes all prior understandings, agreements, or representations by or among such parties, written or oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated hereby.

13

13.    Amendments and Waivers.  This Agreement may not be amended or modified, and no provisions hereof may be waived, without the written consent of the parties hereto.  The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach.  No failure on the part of any party hereto to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy.
14.    Titles and Subtitles.  The article and section headings contained in this Agreement are inserted for convenience only and will not affect in any way the meaning or interpretation of this Agreement.
15.    Construction.  The parties hereto have jointly participated in the negotiation and drafting of this Agreement.  If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no presumption or burden of proof will arise favoring or disfavoring any party hereto because of the authorship of any provision of this Agreement.  Any reference to any federal, state, local or foreign Law will also be deemed to refer to such Law as amended and all rules and regulations promulgated thereunder, unless the context otherwise requires.  All references in this Agreement to articles, sections, subsections and other subdivisions refer to corresponding articles, sections, subsections and other subdivisions of this Agreement unless expressly provided otherwise.  The word “or is not exclusive and the words “including,” “includes” and “include” shall be deemed to be followed by “without limitation.”  Pronouns in masculine, feminine and neuter genders will be construed to include any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise requires.  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.
16.    Incorporation of Attachments.  The exhibits, annexes and schedules identified in this Agreement are incorporated herein by reference and made a part hereof.
17.    Expenses.  Each party shall pay its own fees, costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby, including legal and accounting fees; provided that the Company shall pay any such fees, costs and expenses reasonably incurred by the Investors along with any other fees and expenses required to be reimbursed by that certain Commitment Letter dated as of December 16, 2015, among the Company and the Investors.
18.    Remedies.  The parties hereto shall have all remedies for breach of this Agreement available to them as provided by Law or equity.  Notwithstanding the foregoing, in no event shall the parties hereto have a right to consequential, indirect, special, incidental, exemplary or punitive damages.
19.    Counterparts.  This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.  In making 

14

proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart.  A telecopied facsimile or electronically scanned copy of an executed counterpart of this Agreement shall be sufficient to evidence the binding agreement of each party to the terms hereof
*Remainder of Page Intentionally Left Blank—Signature Pages Follow*

15

IN WITNESS WHEREOF, the parties hereto have executed this Agreement in counterparts effective as of the Effective Date:

	
		
	LARAMIE ENERGY, LLC

	 

	 

	By:
	/s/ Robert S. Boswell

	Name: Robert S. Boswell

	Title:   Chairman and Chief Executive Officer

	 

SIGNATURE PAGE TO 
UNIT PURCHASE AGREEMENT — LARAMIE ENERGY

IN WITNESS WHEREOF, the parties hereto have executed this Agreement in counterparts effective as of the Effective Date:

	
				
	PAR PICEANCE ENERGY EQUITY LLC

	By:
	Par Pacific Holdings, Inc., 
its sole member

	 
	 

	 
	 

	By:
	/s/ William Monteleone

	Name:
	William Monteleone

	Title:
	SVP Mergers & Acquisitions

SIGNATURE PAGE TO 
UNIT PURCHASE AGREEMENT — LARAMIE ENERGY

IN WITNESS WHEREOF, the parties hereto have executed this Agreement in counterparts effective as of the Effective Date:

	
	
	 

	/s/ Steven A. Webster

	STEVEN A. WEBSTER

SIGNATURE PAGE TO 
UNIT PURCHASE AGREEMENT — LARAMIE ENERGY

IN WITNESS WHEREOF, the parties hereto have executed this Agreement in counterparts effective as of the Effective Date:

	
		
	DLJ MERCHANT BANKING PARTNERS IV, L.P.

	 

	By: aPriori Capital Partners IV, L.P.,

	its general partner

	 

	By: aPriori Capital Partners IV GP LLC,  
its general partner

	 

	 

	By:
	/s/ Susan C. Schnabel

	Name: Susan C. Schnabel

	Title:   Authorized Person

	 

	 

	LARAM HOLDINGS II, LLC

	 

	By: aPriori Capital Partners IV LLC, its managing member

	 

	 

	By:
	/s/ Susan C. Schnabel

	Name: Susan C. Schnabel

	Title:   Authorized Person

SIGNATURE PAGE TO 
UNIT PURCHASE AGREEMENT — LARAMIE ENERGY

IN WITNESS WHEREOF, the parties hereto have executed this Agreement in counterparts effective as of the Effective Date:

	
			
	

WELLS FARGO CENTRAL PACIFIC HOLDINGS, INC.

	 
	 

	 
	 

	By:
	/s/ Gilbert Shen

	Name:
	Gilbert Shen

	Title:
	Vice President

SIGNATURE PAGE TO 
UNIT PURCHASE AGREEMENT — LARAMIE ENERGYExhibit

Exhibit 10.75

December 17, 2015
By Electronic Mail

Piceance Energy, LLC
1401 Seventeenth Street, Suite 1400
Denver, Colorado  80202
Attention: Bruce Payne

Re:    Equity Commitment Letter – Project Elway

Ladies and Gentlemen:

Reference is made to that certain Purchase and Sale Agreement (the “Agreement”) dated as of the date hereof among Piceance Energy, LLC (“Piceance”) and Oxy USA Inc., OXY USA WTP LP, YT Ranch LLC and Oxy Y-1 Company (collectively, the “Company”), attached hereto as Annex A.  Capitalized terms used but not otherwise defined herein (the “Equity Commitment Letter”) shall have the meanings given to them in the Agreement.  
This Equity Commitment Letter will confirm the terms upon which Par Pacific Holdings, Inc. or one or more of its direct or indirect subsidiaries (“Par”) is willing to purchase or cause to be purchased, directly or indirectly, certain membership interests of Piceance in connection with closing of the transactions that are the subject of the Agreement.
1.Equity Commitment. Par shall, at or immediately prior to the Closing, subject to the terms and conditions set forth herein, purchase, or cause the purchase of, 153,803 Class A Units of Piceance (the “Units”) such that Par's pro forma ownership totals 42.3% of the Units issued and outstanding after the consummation of the transactions contemplated herein for an aggregate cash purchase price equal to $55.0 million (or $358 per Unit (the “Equity Commitment”), or such lesser amount of Units which is sufficient, together with the binding commitments of (a) the purchase by affiliates of aPriori Capital Partners of at least $5.0 million and Steve Webster or affiliates of Avista Capital partners of at least $10 million of Units at the same per Unit purchase price as the Equity Commitment, (b) preferred equity financing (the “Preferred Equity”) of at least $30.0 million to be provided by Wells Fargo Central Pacific Holdings, Inc. on substantially the terms and conditions attached hereto as Annex B, and (c) debt financing to be provided by the lenders (including JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association) under Piceance’s credit agreement (the “Piceance Credit Agreement”) through an increase in the borrowing base thereunder by at least $60.0 million (i.e., from $110.0 million to $170.0 million) (the transactions described in clauses (a), (b) and (c) above are referred to herein as the “Other Financing Commitments”), to fund the amounts required to be paid by Piceance to consummate the transactions contemplated by, and pursuant to, the Agreement.  Par shall not, under any circumstances, be obligated to contribute more than the Equity Commitment and the proceeds of the Equity Commitment shall be used solely for 

the purpose of funding the amounts required to be paid by Piceance to consummate the transactions contemplated by, and pursuant to, the Agreement.  
2.Conditions.  The Equity Commitment shall be subject to (a) the execution and delivery of the Agreement by Piceance, in form and substance acceptable to Par, provided, however, that the Purchase Price in the Agreement shall not exceed $157.5 million, (b) the execution and delivery of appropriate definitive binding transactional documents customary for an equity purchase of this nature for Par (collectively, the “Definitive Documents”) that are substantially consistent with the terms and conditions set forth in this Equity Commitment Letter and are otherwise acceptable to Par and Piceance, including an amendment to the Second Amended and Restated Limited Liability Company Agreement of Piceance dated as of July 27, 2015, providing that (i) the forced sale right described in Section 11.4 of such limited liability company agreement will be exercisable by members of Piceance representing two-thirds of the outstanding Units (instead of Laramie Energy II, LLC or a successor to its interests), and (ii) the Board of Managers will, within ten (10) days after the day on which the Agreement is fully executed by all parties thereto (the “Execution Date”), establish a policy requiring Piceance to hedge at least 80% of its future proved developed production at any point in time based on swaps or costless collars if the projected Debt / EBITDA ratio over following four quarters is forecasted to be greater than 2.50 to 1.0, (c) no later than the Execution Date, Piceance shall have (i) entered into or be subject to oil and gas hedging transactions representing the maximum amount permitted on a secured basis under the Piceance Credit Agreement, with such amount to be at least 80% of the reasonably projected proved developed producing gas production of both Piceance’s reserves as of the Execution Date and the Oil and Gas Properties that are the subject of the Agreement (collectively, the “Subject Properties”), on a forward basis, for the period from March 2016 through December 2018, (ii) entered into derivative transactions in the form of either puts or other mutually agreeable hedging instruments to hedge the price risk associated with at least 80% of the projected production from the existing Piceance inventory drilled but uncompleted wells expected to commence production during 2016 and (iii) mutually agreed with Par, the Company and the participants in the Other Financing Commitments concerning the public disclosure of the transactions contemplated by this Equity Commitment Letter, the Agreement and the Other Financing Commitments, (d) To the extent the Company has not elected to redeem the Preferred Equity, the terms and conditions of the Preferred Equity will provide that Par has a contractual right to redeem the Preferred Equity in the event there is an uncured or the Company hasn’t received a waiver regarding an Event of Default under the Company’s existing Senior Secured Credit Agreement section 11.1 (a), (b), and with respect (c) exclusively applicable to Section 4.6 and Article X at a price equal to then applicable Liquidation Preference Amount, as such term is defined in Annex B, in the final definitive agreements concerning the Preferred Equity in form and substance acceptable to Par, (e) the agreement by Piceance and the Company to provide to Par such information as is necessary in order for Par or any of its affiliates to comply with the reporting and disclosure obligations under the rules and regulations of the Securities and Exchange Commission, including but not limited to Regulation S-X, Form 10-K and Form 8-K, including that such information is provided in a timely manner so as to allow Par and its regularly retained accounting firm to review the information and timely make the necessary filings, (f) the satisfaction in full at or prior to the Closing of each of the conditions set forth in the Agreement (other than any conditions that by their nature are to be satisfied at the Closing but subject to the prior or substantially concurrent satisfaction of such conditions), (g) the substantially contemporaneous consummation 

2

of the Closing and (h) the substantially contemporaneous closing of the Other Financing Commitments on the terms and conditions set forth in this Equity Commitment Letter and that are otherwise acceptable to Par and Piceance. 
3.Enforceability; Third-Party Beneficiary. There is no express or implied intention to benefit any third party including, without limitation, the Company and nothing contained in this Equity Commitment Letter is intended, nor shall anything herein be construed, to confer any rights, legal or equitable, in any person or entity other than Piceance. Under no circumstances shall Par be liable for any costs or damages including, without limitation, any special, incidental, consequential, exemplary or punitive damages, to any person or entity, including the Company, in respect of this Equity Commitment Letter. 
4.Term.  This commitment will be effective upon your acceptance of the terms and conditions of this Equity Commitment Letter and will expire on the earlier to occur of (i) March 2, 2016, (ii) the Closing pursuant to the Agreement or (iii) the termination of the Agreement pursuant to its terms.  By your acceptance hereof, Piceance acknowledges, covenants and agrees, on behalf of itself, its affiliates, and any person claiming by, through or on behalf of any of them, that all claims that may be based upon or otherwise relate to this Equity Commitment Letter or the negotiation, execution, performance or breach of this Equity Commitment Letter, including any representation or warranty made or alleged to have been made in connection with, or as an inducement to, this Equity Commitment Letter, may be made only against (and are expressly limited to) Par, and no other person (including any past, present or future director, officer, employee, member, partner, manager, direct or indirect equityholder, management company, affiliate, agent, attorney or representative of Par) shall have any liability or obligation in respect of this Equity Commitment Letter or any such claim.
5.No Modification; Entire Agreement. This Equity Commitment Letter may not be amended or otherwise modified without the prior written consent of Par and Piceance. Together with the Agreement and the Definitive Documents, this Equity Commitment Letter constitutes the sole agreement, and supersedes all prior agreements, understandings and statements, written or oral, between Par and Piceance with respect to the transactions contemplated hereby. Each of the parties acknowledges that each party and its respective counsel have reviewed this Equity Commitment Letter and that any rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Equity Commitment Letter. 
6.Governing Law. This Equity Commitment Letter shall be governed by, and construed in accordance with, the laws of the State of Texas (without giving effect to the conflict of laws principles thereof). Each party to this Equity Commitment Letter hereby irrevocably and unconditionally agrees that any action, suit or proceeding, at law or equity, arising out of or relating to this Equity Commitment Letter or any agreements or transactions contemplated hereby shall only be brought in any federal court of the Southern District of Texas or any state court located in Harris County, Texas, and hereby irrevocably and unconditionally expressly submits to the personal jurisdiction and venue of such courts for the purposes thereof and hereby irrevocably and unconditionally waives (by way of motion, as a defense or otherwise) any and all jurisdictional, venue and convenience objections or defenses that such party may have in such action, suit or 

3

proceeding, and to any trial by jury to the extent permitted by applicable law.  Each party hereby irrevocably and unconditionally consents to the service of process of any of the aforementioned courts. Nothing herein contained shall be deemed to affect the right of any party to serve process in any manner permitted by law or commence legal proceedings or otherwise proceed against any other party in any other jurisdiction to enforce judgments obtained in any action, suit or proceeding brought pursuant to this section.  
7.Assignments.  This Equity Commitment Letter may not be assigned by Piceance without the prior written consent of Par (and any purported assignment without such consent will be null and void).  Par may assign its commitments and agreements hereunder, in whole or in part, to any of its affiliates prior to the execution of Definitive Documentation.  This Equity Commitment Letter may not be amended nor may any term or provision hereof or thereof waived or otherwise modified except by an instrument in writing signed by each of the parties hereto and any term or provision hereof or thereof may be amended or waived only by a written agreement executed and delivered by all parties hereto.
8.Counterparts.  This Equity Commitment Letter may be executed in any number of counterparts (including by e-mail of PDF or scanned versions or by facsimile), each such counterpart being deemed to be an original instrument, and all such counterparts shall together constitute the same agreement. 
9.Interpretation.  Headings are used for reference purposes only and do not affect the meaning or interpretation of this Equity Commitment Letter. When a reference is made in this Equity Commitment Letter to a Section, such reference shall be to a Section of this Equity Commitment Letter unless otherwise indicated. The word “including” and words of similar import when used in this Equity Commitment Letter will mean “including, without limitation,” unless otherwise specified. 
[Remainder of page intentionally left blank]

4

PAR PACIFIC HOLDINGS, INC.

By: /s/ William Pate    
William Pate 
President & Chief Executive Officer

Agreed and accepted as of the date
first written above:

PICEANCE ENERGY, LLC

By: /s/ Robert S. Boswell        
Name: Robert S. Boswell 
Title: Chairman & CEO

SIGNATURE PAGE FOR EQUITY COMMITMENT LETTER

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}]]