HALLADOR PETROLEUM COMPANY
RESTRICTED STOCK UNIT ISSUANCE AGREEMENT
This RESTRICTED STOCK UNIT ISSUANCE AGREEMENT (this “Agreement”) is made
and entered into as of July 19, 2007 by and between Hallador Petroleum Company, a Colorado
corporation (the “Corporation”), and Brent K. Bilsland, an individual (“Participant”).
Participant serves as the President of Sunrise Coal, LLC, which is a Subsidiary of the
Corporation, and as such is to render valuable services to the Corporation, and this Agreement
evidences the special equity incentive award authorized by the Corporation for Participant as an
inducement to continue to provide such services to the Corporation.
All capitalized terms in this Agreement shall have the meaning assigned to them in the
attached Appendix A.
NOW, THEREFORE , it is hereby agreed as follows:
Grant of Restricted Stock Units . The Corporation hereby awards to
Participant, as of the Award Date, Restricted Stock Units for the number of shares of Common
Stock indicated below. Each Restricted Stock Unit which vests during Participant’s period of
Service shall entitle Participant to receive one share of Common Stock on the specified issue
date. The number of shares of Common Stock subject to the awarded Restricted Stock Units, the
applicable vesting schedule for those shares, the applicable date or dates on which those vested
shares shall become issuable to Participant and the remaining terms and conditions governing the
award (the “Award”) shall be as set forth in this Agreement.
Limited Transferability . Prior to actual receipt of the Shares which vest and
become issuable hereunder, Participant may not transfer any interest in the Award or the underlying
Shares. Any Shares which vest hereunder but which otherwise remain unissued at the time of
Participant’s death may be transferred pursuant to the provisions of Participant’s will or the laws of
inheritance or to Participant’s designated benefic