GASTAR EXPLORATION LTD 8-K (Events or Changes Between Quarterly Reports) 2009-02-20

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 20, 2009 (February 16, 2009)
GASTAR EXPLORATION LTD.

(Exact Nam e of Re gistran t as S pe cifie d in Its C h arte r)
ALBERTA, CANADA 001-32714 98-0570897

(State or oth e r jurisdiction (C om m ission File Nu m be r) (IRS Em ploye r
of in corporation ) Ide n tification No.)
1331 LAMAR STREET, SUITE 1080

HOUSTON, TEXAS 77010
(Addre ss of prin cipal e xe cu tive office s)
(713) 739-1800
(Re gistran t’s te le ph on e n u m be r, inclu ding are a code )
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (see General Instruction A.2. below):
® Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
® Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
® Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
® Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ITEM 1.01 – ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

On February 16, 2009, following the receipt of the requisite consent of noteholders described under Item 8.01 below, Gastar Exploration
USA, Inc. (“Gastar USA”), Gastar Exploration Ltd. (“the Company”) and each of Gastar USA’s domestic subsidiaries (collectively, the
“Guarantors”) entered into a Supplemental Indenture (the “Supplemental Indenture”) with Wells Fargo Bank, National Association (the
“Trustee”), related to Gastar USA’s 12 3/4 % Senior Secured Notes due 2012 (the “12 3/4 % Senior Secured Notes”). The Supplemental
Indenture supplements, amends and modifies the indenture dated as of November 29, 2007 (the “Indenture”), between Gastar USA, the
Company, the Guarantors and the Trustee to enable Gastar USA to enter into a $25 million secured term loan dated as February 16, 2009 (the
“Term Loan”) among Gastar USA, the Company, Wayzata Investment Partners LLC, as Administrative Agent, and the lenders party thereto.
Among other modifications to covenants contained in the Indenture, the Supplemental Indenture provides that in the event the Company or
any of its subsidiaries sells assets in East Texas, the Company and Gastar USA must first use the net proceeds from such sale to repay any
debt outstanding under the Company’s existing revolving credit facility entered into with Amegy Bank National Association, as
Administrative Agent, and the other lenders party thereto on November 29, 2007 (as amended, the “Revolving Credit Facility”) and repay
amounts outstanding under the Term Loan. On or before June 1, 2011, any remaining net proceeds must be used for the pro rata redemption of
the 12 3/4 % Senior Secured Notes at a purchase price equal to 106.375% of principal amount of the 12 3/4 % Senior Secured Notes, plus accrued
and unpaid interest, if any, with such asset sale redemption prices decreasing to 103.188% and 100.00% of the principal amount of the 12 3/4 %
Senior Secured Notes in 2011 and 2012, respectively. Net proceeds from non-East Texas asset sales in an aggregate amount up to $60 million
may be reinvested during the first 360 days from the closing date for the development of any geologic basins in which the Company or its
subsidiaries owned properties as of January 1, 2009, with any uninvested net proceeds after 360 days from the closing date to be used for the
repayment of amounts outstanding under the Revolving Credit Facility, the Term Loan, and the redemption of the 12 3/4 % Senior Secured
Notes in accordance with the terms governing the use of proceeds from asset sales of East Texas properties. The Supplemental Indenture also
eliminated a covenant restricting certain payments of consideration as an inducement to any consent to any waiver, supplement or amendment
to the Indenture or related agreements and instruments. A copy of the Supplemental Indenture is filed herewith as Exhibit 4.1 and is
incorporated herein by reference.
Concurrently with the execution of the Supplemental Indenture, Gastar USA and the Company entered into the Term Loan. On
February 17, 2009, Gastar USA drew $25 million under the Term Loan, with proceeds from such incurrence, net of transaction costs and loan
fees, to fund current and future capital commitments and operating costs. Borrowings bear interest at a fixed rate of 20% per annum. The Term
Loan contains various customary covenants, including restrictions on liens, restrictions on incurring other indebtedness without the lender’s
consent, restrictions on dividends and other restricted payments, and maintenance of various ratios. The Term Loan matures on February 15,
2012. Amounts outstanding under the Term Loan may be prepaid prior to maturity, with a prepayment premium of 10% if repaid prior to
December 31, 2009, and a prepayment premium of 5% if repaid between January 1, 2010 through December 31, 2010. Upon a Change of Control
(as defined in the Term Loan), all amounts outstanding under the Term Loan will be immediately due and payable. A copy of the Term Loan is
filed herewith as Exhibit 4.2 and is incorporated herein by reference.
Amounts outstanding under the Term Loan are secured by a first priority lien on Gastar USA’s and certain subsidiaries’ primary oil and
gas assets and certain other properties. In order to provide that the liens securing amounts outstanding under the Term Loan and other
existing and future indebtedness incurred under the Company’s existing Revolving Credit Facility are and remain senior to the liens securing
the 12 3/4 % Senior Secured Notes, the Company, Gastar USA, Amegy Bank National Association, as First Priority Agent, and Wells Fargo
Bank, National Association, as Second Priority Agent, entered into the Amended and Restated Intercreditor Agreement on February 16, 2009
(“Amended and Restated Intercreditor Agreement”). A copy of the Amended and Restated Intercreditor Agreement is filed herewith as Exhibit
4.3 and incorporated herein by reference.
On February 16, 2009, Gastar USA, the Company, certain subsidiaries of the Parent and Amegy Bank National Association, as
Administrative Agent and Letter of Credit Issuer, entered into the Waiver and Second Amendment to Credit Agreement (the “Second
Amendment”) to provide for the waiver of a breach of a covenant under the Revolving Credit Facility and the additional incurrence of first lien
secured debt
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under the Term Loan. The Second Amendment provides for a waiver of any past or present breach of Section 6.14 of the Revolving Credit
Facility which requires the Company to maintain a ratio of current assets to current liabilities of 1.0 to 1.0, as adjusted, which waiver is effective
until the end of the next fiscal quarter. There is no assurance the Company will maintain this current ratio at the end of future fiscal quarters. In
such an event, the Company will have to seek another waiver or it may be in default on its obligations, which could permit the Administrative
Agent to accelerate all amounts due under the Revolving Credit Facility. Such an event may also trigger cross-default provisions related to the
12 3/4 % Senior Secured Notes and certain other indebtedness of the Company. The Second Amendment provides for an automatic extension of
the October 15, 2009 maturity date of the Revolving Credit Facility to December 1, 2010 if the Company has demonstrated to the Administrative
Agent its ability to repay or refinance all of its $30 million 9.75% Convertible Senior Unsecured Subordinated Debenture due November 20,
2009. The Second Amendment also includes changes to certain affirmative and negative covenants and defined terms in order to conform such
covenants to corresponding covenants contained in the Term Loan. A copy of the Second Amendment is filed herewith as Exhibit 4.4 and
incorporated herein by reference.
The foregoing summaries do not purport to be complete and are qualified in their entirety by reference to the Supplemental Indenture, the
Term Loan, the Amended and Restated Intercreditor Agreement and the Second Amendment.
ITEM 2.03
The information in Item 1.01 is incorporated by reference.
ITEM 8.01 – OTHER EVENTS

On February 18, 2009, Gastar Exploration Ltd. issued a press release entitled “Gastar Exploration Announces Successful Completion of
Consent Solicitation and Incurrence of $25 Million Under New Secured Term Loan,” which announced that Gastar USA completed its
previously announced solicitation of consents from holders of a majority in aggregate principal amount of the 12 3/4 % Senior Secured Notes
for the elimination or modification of certain covenants in the related indenture governing the 12 3/4 % Senior Secured Notes. The press release
also announced that following Gastar USA’s receipt of the requisite consent, the Company, Gastar USA and certain subsidiaries entered into
the previously negotiated Term Loan and incurred $25 million under the Term Loan, with net proceeds to fund current and future capital
commitments and operating costs. This press release is furnished as Exhibit 99.1 and is incorporated herein by reference.
ITEM 9.01 – FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits
The information in Item 1.01 is incorporated by reference.
Exh ibit No. De scription of Docu m e n t

4.1 Supplemental Indenture dated as of February 16, 2009, related to the 12 3/4 % Senior Secured Notes due 2012, between
Gastar Exploration USA, Inc., Gastar Exploration Ltd., Wells Fargo Bank, National Association, as Trustee and Collateral
Agent, and each of the other Guarantors party thereto.
4.2 Term Loan dated as of February 16, 2009 among Gastar Exploration USA, Inc., Gastar Exploration Ltd., certain subsidiaries
of Gastar Exploration Ltd., Wayzata Investment Partners LLC, as Administrative Agent and the lenders party thereto.
4.3 Amended and Restated Intercreditor Agreement dated February 16, 2009, among Gastar Exploration USA, Inc., Gastar
Exploration Ltd., each of the Guarantors party thereto, Amegy Bank National Association, as First Priority Agent, and
Wells Fargo National Association, as Second Priority Agent.
4.4 Waiver and Second Amendment to Credit Agreement, dated February 16, 2009, among Gastar Exploration USA, Inc., the
Guarantors party thereto and Amegy Bank National Association as Administrative Agent and Letter of Credit Issuer.
99.1 Press release dated February 18, 2009.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Date: February 20, 2009 /s/ J. RUSSELL PORTER

J. Russell Porter
Chairman, President and Chief Executive Officer
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EXHIBIT INDEX
Exh ibit No. De scription of Docu m e n t

4.1 Supplemental Indenture dated as of February 16, 2009, related to the 12 3/4 % Senior Secured Notes due 2012, between
Gastar Exploration USA, Inc., Gastar Exploration Ltd., Wells Fargo Bank, National Association, as Trustee and Collateral
Agent, and each of the other Guarantors party thereto.
4.2 Term Loan dated as of February 16, 2009 among Gastar Exploration USA, Inc., Gastar Exploration Ltd., certain subsidiaries
of Gastar Exploration Ltd., Wayzata Investment Partners LLC, as Administrative Agent and the lenders party thereto.
4.3 Amended and Restated Intercreditor Agreement dated February 16, 2009, among Gastar Exploration USA, Inc., Gastar
Exploration Ltd., each of the Guarantors party thereto, Amegy Bank National Association, as First Priority Agent, and
Wells Fargo National Association, as Second Priority Agent.
4.4 Waiver and Second Amendment to Credit Agreement, dated February 16, 2009, among Gastar Exploration USA, Inc., the
Guarantors party thereto and Amegy Bank National Association as Administrative Agent and Letter of Credit Issuer.
99.1 Press release dated February 18, 2009.
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Exhibit 4.1
Execution Version
GASTAR EXPLORATION USA, INC.,
AND
THE GUARANTORS NAMED HEREIN,
AND
WELLS FARGO BANK, NATIONAL ASSOCIATION
as Trustee and Collateral Agent
SUPPLEMENTAL INDENTURE
Dated as of February 16, 2009
to
Indenture
Dated as of November 29, 2007

12 3/4 % Senior Secured Notes due 2012
SUPPLEMENTAL INDENTURE, dated as of February 16, 2009 (this “Supplemental Indenture”), between GASTAR EXPLORATION
USA, Inc., a Michigan corporation, (the “Company”), GASTAR EXPLORATION LTD., an Alberta company (the “Parent”), the other
Guarantors named herein, and WELLS FARGO BANK, NATIONAL ASSOCIATION and any and all successors thereto, as trustee (the
“Trustee”) and as collateral agent (“Collateral Agent”). All capitalized terms used and not defined herein shall have the respective meanings
assigned to them in the Indenture.
WHEREAS, the Company intends to enter into a Waiver and Second Amendment to Credit Agreement dated February 16, 2009 with the
Parent, the other Guarantors named herein, Amegy Bank National Association, as administrative agent, and the lenders party thereto;
WHEREAS, the Company intends to enter into a Credit Agreement dated as of February 16, 2009 (as amended from time to time, the
“Wayzata Credit Agreement”) among the Company, the Parent, certain Subsidiaries of the Parent, Wayzata Investment Partners LLC, as
administrative agent and the lenders party thereto, providing for the funding of loans in the aggregate principal amount of $25.0 million
thereunder;
WHEREAS, the Company, the Guarantors and the Trustee are parties to an Indenture, dated as of November 29, 2007 (the “Indenture”),
pursuant to which the Company issued its 12 3/4 % Senior Secured Notes due 2012 (the “Notes”);
WHEREAS, the Board of Directors of the Company, the Parent and each of the Guarantors have authorized and approved the
amendments to the Indenture set forth herein and delivered to the Trustee resolutions of the Board of Directors of the Company, the Parent
and each of the Guarantors to that effect (the “Amendments”);
WHEREAS, Section 9.02 of the Indenture provides that the Company, the Trustee and the Collateral Agent may amend or supplement
the Indenture, the Notes and the Guarantees with the consent of the Holders of at least a majority in aggregate principal amount of the Notes
then outstanding;
WHEREAS, the Holders of a majority in aggregate principal amount of the outstanding Notes have consented to the Amendments in
accordance with Section 9.02 of the Indenture; and
WHEREAS, the execution and delivery of this Supplemental Indenture have been duly authorized and all conditions and requirements
necessary to make this Supplemental Indenture a valid and binding agreement have been duly performed and complied with;
NOW, THEREFORE, for and in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of
which hereby are acknowledged, it is mutually covenanted and agreed, for the equal proportionate benefit of all Holders of the Notes, as
follows:
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ARTICLE I
OPERATION OF AMENDMENTS
Section 1.1 Operation of Amendments. Notwithstanding an earlier execution date, the Amendments described in Article II of this
Supplemental Indenture shall not become operative until such time as the following condition has been satisfied and the Company has
delivered an Officers’ Certificate to the Trustee notifying the Trustee that such condition has been satisfied:
(a) the execution by all parties thereto of the Wayzata Credit Agreement and the concurrent funding of all loans contemplated
therein.
ARTICLE II
AMENDMENTS TO INDENTURE
Section 2.1 Definitions.

(a) The following definitions in Section 1.01 of the Indenture are hereby amended and restated to read in their entirety as follows:
“Cash Equivalents” means:
(1) United States dollars or other foreign currencies used in the ordinary course of the Parent’s or a Restricted Subsidiary’s
business;
(2) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality
of the United States government (provided that the full faith and credit of the United States is pledged in support of those securities)
having maturities of not more than six months from the date of acquisition;
(3) certificates of deposit and eurodollar time deposits with maturities of six months or less from the date of acquisition, bankers’
acceptances with maturities not exceeding six months and overnight bank deposits, in each case, with any lender party to a Credit
Facility or with any domestic commercial bank having capital and surplus in excess of $500.0 million and a Thomson Bank Watch Rating
of “B” or better;
(4) repurchase obligations with a term of not more than seven days for underlying securities of the types described in clauses
(2) and (3) above entered into with any financial institution meeting the qualifications specified in clause (3) above; and
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(5) money market funds at least 95% of the assets of which constitute Cash Equivalents of the kinds described in clauses
(1) through (4) of this definition.
“First Priority Agent” means Amegy Bank National Association, as collateral agent under First Lien Intercreditor Agreement, and
any successor designated as such under the First Lien Intercreditor Agreement.
“First Priority Claims” means (1) all Indebtedness under the Credit Facilities permitted pursuant to clause (1) of the definition of
the term “Permitted Debt,” and all other Obligations (other than principal) relating to such Indebtedness and owing under the documents
relating to such Indebtedness and (2) all Hedging Obligations permitted under all Credit Facilities including “Swap Obligations” as
defined in the Intercreditor Agreement.
“Intercreditor Agreement” means the Amended and Restated Intercreditor Agreement dated as of February 16, 2009 among the
First Priority Agent (as the successor to the Administrative Agent), the Administrative Agent, the Collateral Agent, the Company and
the Guarantors, as the same may be amended, supplemented or modified from time to time.
“Major Asset Sale” means any Asset Sale, other than an Exempt Asset Sale, of Oil and Gas Properties or of Equity Interests in
Subsidiaries that own Oil and Gas Properties.
(b) The following definitions are inserted in alphabetical order in Section 1.01 of the Indenture:
“Exempt Asset Sales” means one or more Asset Sales of Oil and Gas Properties located in Leon or Robertson County, Texas that
are owned by the Parent or any of its Restricted Subsidiaries which are made on or after January 1, 2009, to the extent that the aggregate
Fair Market Value of all such Oil and Gas Properties sold on or after such date is $2.0 million or less. To the extent that the aggregate Fair
Market Value of all such Oil and Gas Properties sold on or after such date is more than $2.0 million, such Asset Sales shall be considered
to be Major Asset Sales of Oil and Gas Properties located in Leon or Robertson County, Texas.
“First Lien Intercreditor Agreement” means the Collateral Agency and Intercreditor Agreement dated as of February 16, 2009
among Amegy Bank National Association, as collateral agent, Amegy Bank National Association, as administrative agent, Wayzata
Investment Partners LLC, as administrative agent, BP Corporation North America Inc. and the other swap counterparties from time to
time party thereto, the Company, the Parent and certain Subsidiaries of the Parent.
“Special Excess Proceeds” means, as of any date:
(1) all Net Proceeds from any Major Asset Sale by the Parent or its Restricted Subsidiaries of Oil and Gas Properties located in Leon
or Robertson Counties, Texas that are owned by the Parent or any of its Restricted Subsidiaries and
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(2) if the aggregate Net Proceeds from all other Major Asset Sales and from all Exempt Asset Sales by the Parent and its Restricted
Subsidiaries during the two-year period immediately preceding such date, excluding any Major Asset Sales or Exempt Asset Sales
preceding February 1, 2009, exceed $60.0 million, the portion thereof that exceeds $60.0 million.
(c) The following definitions are deleted in their entirety from Section 1.01 of the Indenture: “ACNTA” and “Material Change”.
Section 2.2 Dividend and Other Payment Restrictions Affecting Subsidiaries. The second clause (1) in Section 4.08 is amended and
restated in its entirety as follows:
(1) agreements governing Existing Indebtedness and Credit Facilities as in effect on or before February 16, 2009 and any
amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings of those
agreements; provided that the amendments, modifications, restatements, renewals, increases, supplements, refundings, replacement or
refinancings are not materially more restrictive, taken as a whole, with respect to such dividend and other payment restrictions than
those contained in those agreements on or before February 16, 2009;
Section 2.3 Incurrence of Indebtedness and Issuance of Preferred Stock. Clause (1) of the definition of “Permitted Debt” in
Section 4.09 of the Indenture is hereby amended and restated in its entirety as follows:
(1) the incurrence by the Parent or any of its Restricted Subsidiaries of Indebtedness under one or more Credit Facilities in an
aggregate principal amount at any one time outstanding under this clause not to exceed $55.0 million.
Section 2.4 Asset Sales. Section 4.10(b) of the Indenture is hereby amended and restated in its entirety as follows:
(b) The following provisions will apply to Major Asset Sales:
(1) During the 360 days after the Parent or any of its Restricted Subsidiaries receives any Net Proceeds from a Major Asset Sale that
are not Special Excess Proceeds, the Parent or such Restricted Subsidiary may apply those Net Proceeds that are not Special Excess
Proceeds to the development of Oil and Gas Properties in any geologic basin in which the Parent or any such Restricted Subsidiary
owned Oil and Gas Properties as of January 1, 2009.
(2) Any Net Proceeds from any Major Asset Sales that are not applied as provided in Section 4.10(b)(1) hereof shall constitute
“Uninvested Proceeds” (and, together with any Special Excess Proceeds, “Major Asset Sale Excess Proceeds”). Except to the extent that
Major Asset Sale Excess Proceeds are applied as provided in Section 4.10(b)(6) hereof, on or before:
(a) the 361st day after a Major Asset Sale, to the extent Net Proceeds other than Special Excess Proceeds are received by the
Parent or any of its Restricted Subsidiaries, and provided that the aggregate amount of Uninvested Proceeds (whether from
such Major Asset Sale or any other Major Asset Sale during the preceding 360 days) then exceeds $5.0 million, the
Company will make an Asset Sale Offer to all Holders of Notes, and all holders of other Indebtedness that is pari passu with
the Notes containing provisions similar to those set forth in this Indenture with respect to offers to purchase or redeem with
the proceeds of sales of assets, to purchase the maximum principal amount of Notes and such other pari-passu
Indebtedness that may be purchased out of such Uninvested Proceeds, and
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(b) the 30th day after a Major Asset Sale, to the extent Special Excess Proceeds are received by the Parent or any of its Restricted
Subsidiaries in connection therewith, the Company will make an Asset Sale Offer to all Holders of Notes, and all holders of
other Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in this Indenture with
respect to offers to purchase or redeem with the proceeds of sales of assets, to purchase the maximum principal amount of
Notes and such other pari-passu Indebtedness that may be purchased out of such Special Excess Proceeds.
The offer price in any such Asset Sale Offer will be equal to 106.375% of principal amount (if such Asset Sale Offer is made prior to
June 1, 2011), 103.188% of principal amount (if such Asset Sale Offer is made on or after June 1, 2011 and prior to June 1, 2012), or 100%
of principal amount (if such Asset Sale Offer is made on or after June 1, 2012), plus, in each case, accrued and unpaid interest, if any, to
the date of settlement, subject to the right of Holders of record on the relevant record date to receive interest due on an interest payment
date that is on or prior to the date of settlement, and will be payable in cash.
(3) If any Major Asset Sale Excess Proceeds remain after consummation of such an Asset Sale Offer, the Parent and its Restricted
Subsidiaries may use those Major Asset Sale Excess Proceeds for any purpose not otherwise prohibited by this Indenture.
(4) If the aggregate principal amount of Notes and other pari-passu Indebtedness tendered into such Asset Sale Offer exceeds the
amount of Major Asset Sale Excess Proceeds, the Trustee will select the Notes and such other pari-passu Indebtedness to be purchased
on a pro-rata basis.
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(5) Pending the final application of any such Major Asset Sale Excess Proceeds, the Parent or any of its Restricted Subsidiaries may
temporarily reduce revolving credit borrowings under the Credit Agreement or, if such revolving credit borrowings have been reduced to
zero, otherwise invest the Net Proceeds in Cash Equivalents in any manner that is not prohibited by this Indenture.
(6) Prior to making any such Asset Sale Offer, the Parent or any such Restricted Subsidiary may also apply all or any part of such
Major Asset Sale Excess Proceeds to repay, redeem or repurchase Senior Debt under Credit Facilities; provided that if such Senior Debt
is revolving credit Indebtedness, the commitments with respect thereto must be correspondingly reduced and in such event the portion
of such Major Asset Sale Excess Proceeds required to be used to make such Asset Sale Offer shall be correspondingly reduced.
Section 2.5 Payments for Consent. The Indenture is hereby amended by deleting Section 4.16 in its entirety. The Holders hereby waive
any past or present breach or failure to comply with the provisions of Section 4.16 of the Indenture by the Parent or any of its Subsidiaries.
Section 2.6 Intercreditor Matters. Section 13.02 of the Indenture is hereby amended and restated to read in its entirety as set forth
below:
Section 13.02 Intercreditor Agreements.
THIS INDENTURE AND THE COLLATERAL AGREEMENTS ARE SUBJECT TO THE TERMS, LIMITATIONS AND CONDITIONS SET
FORTH IN THE INTERCREDITOR AGREEMENT. THE TRUSTEE, THE COMPANY AND EACH HOLDER OF A NOTE, BY ITS
ACCEPTANCE THEREOF, IS DEEMED TO HAVE AUTHORIZED AND INSTRUCTED THE COLLATERAL AGENT TO ENTER INTO
THE INTERCREDITOR AGREEMENT ON ITS BEHALF. The Trustee, the Collateral Agent and each Holder of a Note, by its acceptance
thereof, acknowledge that the Collateral Agreements may be amended, modified or waived without the consent of the Trustee, the
Collateral Holders or the Holders, as and to the extent provided in the Intercreditor Agreement. The Trustee and the Collateral Agent
further acknowledge that (a) the Collateral Agent is required, under certain circumstances provided in the Intercreditor Agreement, to
enter into additional documents and agreements to confirm that the Intercreditor Agreement applies to restatements and refinancings of
the Credit Facilities and (b) the First Priority Agent, the holders of First Priority Claims, the Company, the Parent and certain Subsidiaries
of the Parent have entered into the First Lien Intercreditor Agreement relating to their respective claims as first-lien creditors.
Section 2.7 References to Administrative Agent. Each reference to the Administrative Agent in Sections 4.19(b) and 13.04(d) is amended
so as to refer to the First Priority Agent instead of the Administrative Agent.
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Section 2.8 Intercreditor Agreement. The Trustee and the Collateral Agent are hereby authorized to enter into, on behalf of the Holders
of the Notes, an amended and restated Intercreditor Agreement (the “Restated Intercreditor Agreement”) in such form as the Trustee shall, in
its reasonable discretion, approve providing for the relative rights and obligations of (a) the lenders under the amended and restated revolving
credit facility for the Company, (b) the lenders under the Wayzata Credit Agreement and (c) the Trustee on behalf of the Holders of the Notes
with respect to the Collateral and related matters. The Company will deliver to the Trustee and the Collateral Agent an Officers’ Certificate and
Opinion of Counsel complying with the terms of Section 11.04, stating that the Trustee and the Collateral Agent are authorized to enter into the
Restated Intercreditor Agreement on behalf of the Holders of the Notes, and the Trustee is entitled to rely exclusively on such Officers’
Certificate and Opinion of Counsel. The Restated Intercreditor Agreement shall be substantially in the form attached hereto as Exhibit A,
appropriately completed.
Section 2.9 Subsequent Amendments to Collateral Agreements. The Trustee and the Collateral Agent may execute, on behalf of the
Holders of the Notes, such amendments and supplements to and restatements of the Collateral Agreements as may be required to comply with
the Restated Intercreditor Agreement or the Wayzata Credit Agreement or as may otherwise be required by the administrative agent
thereunder in connection therewith, provided that such Subsequent Amendments do not require the consent of each Holder affected in
accordance with Section 9.02 of the Indenture. In connection therewith the Company will deliver to the Trustee and the Collateral Agent an
Officers’ Certificate and Opinion of Counsel complying with the terms of Section 11.04, stating that the Trustee and the Collateral Agent are
authorized to enter into such amendments, supplements or restatements on behalf of the Holders of the Notes, and the Trustee is entitled to
rely exclusively on such Officers’ Certificate and Opinion of Counsel.
ARTICLE III
MISCELLANEOUS PROVISIONS
Section 3.1 Upon execution and delivery of this Supplemental Indenture, the terms and conditions of this Supplemental Indenture shall
be part of the terms and conditions of the Indenture for any and all purposes, and all the terms and conditions of both shall be read together as
though they constitute one and the same instrument, except that in case of conflict, the provisions of this Supplemental Indenture will control.
Section 3.2 Each of the Company, the Parent, the other Guarantors named herein, the Trustee and the Collateral Agent hereby confirms
and reaffirms the Indenture, as amended and supplemented by this Supplemental Indenture.
Section 3.3 The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of
them together shall represent the same agreement. One signed copy is enough to prove this Supplemental Indenture.
Section 3.4 All provisions of this Supplemental Indenture shall be deemed to be incorporated in, and made a part of, the Indenture; and
the Indenture, as amended and supplemented by this Supplemental Indenture, shall be read, taken and construed as one and the same
instrument.
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Section 3.5 The recitals contained herein shall be taken as the statements of the Company, the Parent or the other Guarantors named
herein, as applicable, and neither the Trustee nor the Collateral Agent assumes any responsibility for their correctness. Neither the Trustee nor
the Collateral Agent shall be liable or responsible for the validity or sufficiency of this Supplemental Indenture or the due authorization of this
Supplemental Indenture by the Company or the Guarantors. In entering into this Supplemental Indenture, the Trustee and the Collateral Agent
shall be entitled to the benefit of every provision of the Indenture relating to the conduct of, affecting the liability of or affording protection to
the Trustee or the Collateral Agent, whether or not elsewhere herein so provided.
Section 3.6 This Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the day and year written
above.
GASTAR EXPLORATION USA, INC.
By: /s/ J. Russell Porter

J. Russell Porter
President
WELLS FARGO BANK, NATIONAL ASSOCIATION, as

trustee and collateral agent
By: /s/ Deirdre H. Ward

Name: Deirdre H. Ward
Title: Vice President
GUARANTORS:
By: /s/ Michael A. Gerlich

Michael A. Gerlich
Vice President and Chief Financial Officer
GASTAR EXPLORATION NEW SOUTH WALES, INC.

J. Russell Porter
President
GASTAR EXPLORATION VICTORIA, INC.

J. Russell Porter
President
SIGNATURE PAGE TO SUPPLEMENTAL INDENTURE

GASTAR EXPLORATION TEXAS, INC.

J. Russell Porter
President
GASTAR EXPLORATION TEXAS, LP

By: Gastar Exploration Texas LLC, its general partner

J. Russell Porter
President
GASTAR EXPLORATION TEXAS LLC

J. Russell Porter
President
SIGNATURE PAGE TO SUPPLEMENTAL INDENTURE

EXHIBIT A
RESTATED INTERCREDITOR AGREEMENT

Exhibit 4.2
Execution
CREDIT AGREEMENT

as Borrower
GASTAR EXPLORATION LTD.,

as Parent
WAYZATA INVESTMENT PARTNERS LLC,

as Administrative Agent
and CERTAIN OTHER PARTIES HERETO,

as Lenders
$25,000,000
February 16, 2009

TABLE OF CONTENTS
Page
ARTICLE I - Definitions and References 1

Section 1.1. Defined Terms 1
Section 1.2. Exhibits and Schedules; Additional Definitions 16
Section 1.3. Terms Generally; References and Titles 16
Section 1.4. Calculations and Determinations 17
Section 1.5. Joint Preparation; Construction of Indemnities and Releases 17
ARTICLE II - The Loans 17
Section 2.1. Commitments to Lend; Notes 17
Section 2.2. Requests for Loans 17
Section 2.3. Use of Proceeds 18
Section 2.4. Interest Rates and Fees; Payment Dates 18
Section 2.5. Optional Prepayments 18
Section 2.6. Prepayment Premium 18
Section 2.7. Obligations of Lenders Several 19
Section 2.8. Letters in Lieu of Transfer Orders or Division Orders 19
Section 2.9. Power of Attorney 19
Section 2.10. Security Interest in Accounts; Right of Offset 20
Section 2.11. Change of Control Prepayment 20
ARTICLE III - Payments to Lenders 20
Section 3.1. General Procedures 20
Section 3.2. Increased Costs 21
Section 3.3. Taxes 22
Section 3.4. Payments by Borrower; Presumptions by Administrative Agent 24
ARTICLE IV - Conditions Precedent to Lending 24
Section 4.1. Closing Conditions 24
ARTICLE V - Representations and Warranties 27
Section 5.1. Due Authorization 27
Section 5.2. Existence 27
Section 5.3. Valid and Binding Obligations 28
Section 5.4. Security Documents 28
Section 5.5. Title to Oil and Gas Properties 28
Section 5.6. Scope and Accuracy of Financial Statements 28
Section 5.7. No Material Misstatements 28
Section 5.8. Liabilities and Litigation 28
Section 5.9. Authorizations; Consents 29
Section 5.10. Compliance with Laws 29
Section 5.11. ERISA 29
Section 5.12. Environmental Laws 29
Section 5.13. Compliance with Federal Reserve Regulations 29
i CREDIT AGREEMENT
Section 5.14. Government Regulation 29

Section 5.15. Proper Filing of Tax Returns; Payment of Taxes Due 30
Section 5.16. Refunds 30
Section 5.17. Gas Contracts 30
Section 5.18. Intellectual Property 30
Section 5.19. Casualties Taking of Property 30
Section 5.20. Principal Location; Organization 31
Section 5.21. Subsidiaries 31
Section 5.22. Compliance with Anti-Terrorism Laws 31
Section 5.23. Identification Numbers 32
Section 5.24. Solvency 32
Section 5.25. No Default 32
Section 5.26. Ad Valorem and Severance Taxes 32
Section 5.27. Environmental and Other Laws 32
Section 5.28. Leases and Contracts; Performance of Obligations 33
Section 5.29. Sale of Production 33
Section 5.30. Operation of Oil and Gas Properties 34
ARTICLE VI - Affirmative Covenants 35
Section 6.1. Maintenance and Access to Records 35
Section 6.2. Public Reporting 35
Section 6.3. Compliance Certificate 35
Section 6.4. Notice of Event of Default. 35
Section 6.5. Other Reports; Information; and Inspections 35
Section 6.6. Title Opinions; Title Defects; Mortgaged Properties 36
Section 6.7. Letters in Lieu of Transfer Orders or Division Orders 36
Section 6.8. Commodity Hedging 36
Section 6.9. Additional Guaranties and Security Documents 36
Section 6.10. Lien Perfection 37
Section 6.11. Compliance with Laws and Agreements 37
Section 6.12. Payment of Taxes, Assessments and Charges 37
Section 6.13. Maintenance of Existence or Qualification and Good Standing 37
Section 6.14. Payment of Notes; Performance of Obligations 38
Section 6.15. Further Assurances 38
Section 6.16. Initial Expenses of Administrative Agent 38
Section 6.17. Operation of Oil and Gas Properties 38
Section 6.18. Maintenance of Properties 38
Section 6.19. Maintenance of Insurance 38
Section 6.20. ENVIRONMENTAL INDEMNIFICATION 39
Section 6.21. GENERAL INDEMNIFICATION 40
Section 6.22. Evidence of Compliance with Anti-Terrorism Laws 40
Section 6.23. Payment of Trade Liabilities 41
Section 6.24. Performance on Borrower’s Behalf 41
Section 6.25. Interest 41
Section 6.26. Environmental Matters; Environmental Reviews 41
Section 6.27. Evidence of Compliance 42
Section 6.28. Leases and Contracts; Performance of Obligations 42
ii CREDIT AGREEMENT
ARTICLE VII - Negative Covenants of Borrower 42

Section 7.1. Indebtedness 42
Section 7.2. Contingent Obligations 44
Section 7.3. Liens 44
Section 7.4. Sales of Assets 44
Section 7.5. Leasebacks 44
Section 7.6. Sale or Discount of Receivables 44
Section 7.7. Loans or Advances 45
Section 7.8. Investments 45
Section 7.9. Certain Payments, Dividends, and Distributions 46
Section 7.10. Issuance of Equity; Changes in Corporate Structure 46
Section 7.11. Transactions with Affiliates 46
Section 7.12. Lines of Business 47
Section 7.13. Plan Obligation 47
Section 7.14. Current Ratio 47
Section 7.15. Total Net Indebtedness to EBITDA Ratio 47
Section 7.16. General and Administrative Expenses 47
Section 7.17. Amendments to Amegy Indebtedness 48
Section 7.18. Anti-Terrorism Laws 48
Section 7.19. Non-Disclosure 48
ARTICLE VIII - Events of Default and Remedies 48
Section 8.1. Events of Default 48
Section 8.2. Remedies 51
Section 8.3. Application of Proceeds After Acceleration 51
ARTICLE IX - Administrative Agent 52
Section 9.1. Appointment and Authority 52
Section 9.2. Exculpatory Provisions 52
Section 9.3. Reliance by Administrative Agent 53
Section 9.4. Non-Reliance on Administrative Agent and Other Lenders 53
Section 9.5. Rights as a Lender 53
Section 9.6. Sharing of Set-Offs and Other Payments 54
Section 9.7. Investments 54
Section 9.8. Resignation of Administrative Agent 54
Section 9.9. Delegation of Duties 55
Section 9.10. Administrative Agent May File Proofs of Claim 55
Section 9.11. Guaranty Matters 56
Section 9.12. Collateral Matters 56
ARTICLE X - Miscellaneous 58
Section 10.1. Waivers and Amendments; Acknowledgments 58
Section 10.2. Survival of Agreements; Cumulative Nature 59
Section 10.3. Notices 60
Section 10.4. Expenses; Damage Waiver 61
Section 10.5. Successors and Assigns; Joint and Several Liability 62
Section 10.6. Confidentiality 64
iii CREDIT AGREEMENT

Section 10.7. Governing Law; Submission to Process 65

Section 10.8. Limitation on Interest 66
Section 10.9. Severability 66
Section 10.10. Counterparts; Integration; Effectiveness 66
Section 10.11. Waiver of Jury Trial, Punitive Damages, etc 66
Section 10.12. USA PATRIOT Act Notice 67
Schedules and Exhibits:

Schedule 1 - Disclosure Schedule
Schedule 2 - Security Schedule
Schedule 3 - Lenders Schedule
Schedule 4 - Use of Proceeds
Exhibit A - Promissory Note
Exhibit B - Borrowing Notice
Exhibit C - Compliance Certificate
Exhibit D - Assignment and Acceptance Agreement
Exhibit E - Closing Certificate
iv CREDIT AGREEMENT
CREDIT AGREEMENT
THIS CREDIT AGREEMENT is made as of February 16, 2009, by and among GASTAR EXPLORATION USA, INC., a Michigan
corporation (“Borrower”), GASTAR EXPLORATION LTD., an Alberta, Canada corporation (“Parent”), WAYZATA INVESTMENT
PARTNERS LLC, individually and as administrative agent (“Administrative Agent”), and the Lenders referred to below.
W I T N E S S E T H:
In consideration of the mutual covenants and agreements contained herein in consideration of the loans which may hereafter be made by
Lenders to Borrower, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto do hereby agree as follows:
ARTICLE I - Definitions and References
Section 1.1. Defined Terms. As used in this Agreement, each of the following terms has the meaning given to such term in this
Section 1.1 or in the sections and subsections referred to below:
“Administrative Agent” means Wayzata Investment Partners LLC, as Administrative Agent hereunder, and its successors in such
capacity.
“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by Administrative Agent.
“Affiliate” means, as to any Person, each other Person that directly or indirectly (through one or more intermediaries or otherwise)
controls, is controlled by, or is under common control with, such Person. A Person shall be deemed to be “controlled by” any other Person if
such other Person possesses, directly or indirectly, power:
(a) to vote 20% or more of the securities or other equity interests (on a fully diluted basis) having ordinary voting power for the election
of directors, the managing general partner or partners or the managing member or members; or
(b) to direct or cause the direction of the management and policies of such Person whether by contract or otherwise.
“Agreement” means this Credit Agreement.
“Amegy” means Amegy Bank National Association, a national banking association, acting in its capacity as administrative agent for the
lenders under the Amegy Credit Agreement, together with its successors and assigns in such capacity.
CREDIT AGREEMENT
“Amegy Bank Group Counterparty” means any Amegy Bank Group Lender or an Affiliate of any Amegy Bank Group Lender that is a
party to a Commodity Hedge Agreement or an Interest Rate Hedge Agreement with any Restricted Person.
“Amegy Bank Group Lenders” means the lenders from time to time party to the Amegy Credit Agreement.
“Amegy Borrowing Base” has the meaning given to the term “Borrowing Base” in the Amegy Credit Agreement.
“Amegy Commitment Termination Date” means the Commitment Termination Date as defined in the Amegy Credit Agreement.
“Amegy Credit Agreement” means the Credit Agreement dated as of November 29, 2007, by and among Borrower, Parent, Gastar
Exploration New South Wales, Inc., a Michigan corporation, Gastar Exploration Victoria, Inc., a Michigan corporation, Gastar Exploration
Texas, Inc., a Michigan corporation, Gastar Exploration Texas, LP, a Delaware limited partnership, and Gastar Exploration Texas LLC, a
Delaware limited liability company, each lender that is a party thereto, and Amegy, as amended through the date hereof and as further
amended, restated or otherwise modified from time to time in accordance with Section 7.17 hereof.
“Amegy Indebtedness” means all Indebtedness owing by Borrower to Amegy and the Amegy Bank Group Lenders pursuant to the
terms of the Amegy Credit Agreement.
“Anti-Terrorism Laws” means any laws relating to terrorism or money laundering, including Executive Order No. 13224 and the USA
Patriot Act.
“Applicable Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Lending Office” below its
name on the Lenders Schedule, or such other office as such Lender may from time to time specify to Borrower and Administrative Agent; and,
with respect to Administrative Agent, the office, branch, or agency through which it administers this Agreement.
“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
Affiliate of an entity that administers or manages a Lender.
“Assignment and Acceptance Agreement” means a document in the form of Exhibit D duly executed by a Lender.
“Blocked Person” means has the meaning given to such term in Section 5.22.
“Borrower” has the meaning given to such term in the preamble hereto.
“Borrowing” means a borrowing of new Loans.
2 CREDIT AGREEMENT
“Borrowing Notice” means a written or telephonic request, or a written confirmation, made by Borrower which meets the requirements of
Section 2.2.
“Business Day” means a day, other than a Saturday or Sunday, on which national banks are open for business with the public in the
United States.
“Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any
law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof
by any Governmental Authority, or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by
any Governmental Authority.
“Change of Control” means the occurrence of any of the following events: (a) any Person or two or more Persons acting as a group shall
acquire beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Act of 1934, as
amended, and including holding proxies to vote for the election of directors other than proxies held by Parent’s management or their designees
to be voted in favor of Persons nominated by Parent’s Board of Directors) of 50% or more of the outstanding voting securities of Parent,
measured by voting power (including both common stock and any preferred stock or other equity securities entitling the holders thereof to
vote with the holders of common stock in elections for directors of Parent); (b) the first day on which a majority of the members of the Parent’s
Board of Directors are not Continuing Directors (not including as Board nominees any directors which the Board is obligated to nominate
pursuant to shareholders agreements, voting trust arrangements or similar arrangements); (c) Parent shall cease to be the sole shareholder of
Borrower or Borrower or one of the Subsidiary Guarantors shall cease to be the sole shareholder or member or the sole general partner of any
Subsidiary Guarantor; or (d) the sale by the Restricted Persons of all or substantially all of the East Texas Properties or of any interest in Gastar
Exploration Texas, LP.
“Closing Date” means the date on which all of the conditions precedent set forth in Section 4.1 shall have been satisfied or waived.
“Collateral” means all property of any kind which is subject to a Lien in favor of Lenders (or in favor of Collateral Agent for the benefit of
Lenders) or which, under the terms of any Security Document, is purported to be subject to such a Lien, in each case that secures the
Obligations.
“Collateral Agency Agreement” means that certain Collateral Agency and Intercreditor Agreement dated as of the date hereof among
Collateral Agent, Amegy, Administrative Agent, BP Corporation North America Inc., Borrower, Parent and the subsidiaries of Parent party
thereto.
“Collateral Agent” means Amegy Bank National Association, a national banking association, acting in its capacity as collateral agent for
the Secured Creditors pursuant to the Collateral Agency Agreement, together with its successors and assigns in such capacity; provided that
upon the termination of the Collateral Agency Agreement, Collateral Agent shall mean Administrative Agent.
3 CREDIT AGREEMENT
“Commitment” means, for each Lender, the obligation of such Lender to make Loans to Borrower in an aggregate amount not exceeding
the amount set forth on the Lenders Schedule or as set forth in any Assignment and Acceptance relating to any assignment that has become
effective pursuant to Section 10.5.
“Commodity Hedge Agreements” means crude oil, natural gas or other hydrocarbon floor, collar, cap, price protection or hedge
agreements.
“Compliance Certificate” means each certificate, substantially in the form attached hereto as Exhibit C, executed by a Responsible Officer
of Parent and furnished to Administrative Agent from time to time in accordance with the provisions of Section 6.3.
“Contingent Obligation” means, as to any Person, any obligation of such Person guaranteeing or in effect guaranteeing any
Indebtedness, leases, dividends, or other obligations of any other Person (for purposes of this definition, a “primary obligation”) in any
manner, whether directly or indirectly, including any obligation of such Person, regardless of whether such obligation is contingent, (a) to
purchase any primary obligation or any Property constituting direct or indirect security therefor, (b) to advance or supply funds (i) for the
purchase or payment of any primary obligation, or (ii) to maintain working or equity capital of any other Person in respect of any primary
obligation, or otherwise to maintain the net worth or solvency of any other Person, (c) to purchase Property, securities or services primarily for
the purpose of assuring the owner of any primary obligation of the ability of the Person primarily liable for such primary obligation to make
payment thereof, or (d) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof, with the
amount of any Contingent Obligation being deemed to be equal to the stated or determinable amount of the primary obligation in respect of
which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as
determined by such Person in good faith.
“Continuing Directors” means, as of any date of determination, any member of the Board of Directors of Parent, who:
(a) was a member of such Board of Directors on the Closing Date; or
(b) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were
members of such Board of Directors at the time of such nomination or election.
“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.
“Current Assets” means all assets which would, in accordance with GAAP, be included as current assets on a consolidated balance
sheet of Parent and its consolidated Subsidiaries as of the date of calculation, after deducting adequate reserves in each case in which a
reserve is proper in accordance with GAAP, plus the then current Available Commitment and, if not already included, the amount of any cash
on deposit with Amegy in accordance with the provisions of Section 7.8, but excluding non-cash derivative current assets arising from
Commodity Hedge Agreements.
4 CREDIT AGREEMENT
“Current Liabilities” means all liabilities which would, in accordance with GAAP, be included as current liabilities on a consolidated
balance sheet of Parent and its consolidated Subsidiaries, but excluding (a) current maturities in respect of the Obligations, both principal and
interest, (b) cash and non-cash derivative current liabilities arising from Commodity Hedge Agreements, (c) current maturities of the
Indebtedness of Parent listed in Section 7.1 of the Disclosure Schedule to the extent any such Indebtedness matures after October 15, 2009
and (d) current maturities in respect of the Indebtedness arising under the Amegy Credit Agreement.
“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally and with respect to
Parent, the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada), the Winding-up Act (Canada) and
all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership,
insolvency, reorganization, or similar debtor relief Laws of Canada or other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.
“Default” means any Event of Default and any default, event or condition which would, with the giving of any requisite notices and the
passage of any requisite periods of time, constitute an Event of Default.
“Default Rate” means, at the time in question, the rate per annum equal to two percent (2%) above the Fixed Rate, provided in each case
that no Default Rate charged by any Person shall ever exceed the Highest Lawful Rate.
“Disclosure Schedule” means Schedule 1 hereto.
“Domestic Subsidiary” means any Subsidiary of Parent that is organized under the laws of the United States of America or any state
thereof or the District of Columbia.
“East Texas Properties” means all Oil and Gas Properties located in Leon or Robertson County, Texas and owned by Gastar Exploration
Texas, LP.
“EBITDA” means, for any period for which the amount thereof is to be determined and on a consolidated basis for Parent and its
consolidated Subsidiaries, Net Income for such period (but excluding (i) unrealized gains or losses or charges in respect of Commodity Hedge
Agreements (including those under GAAP arising from the application of FAS 133), (ii) and extraordinary or non-recurring income items and,
to the extent reasonably acceptable to Administrative Agent, expense items and (iii) deferred financing costs written off, including equity
discounts, and premiums paid in connection with any early extinguishment of Indebtedness permitted pursuant to this Agreement), plus, in
each case to the extent deducted in the determination of Net Income for such period and without duplication of any item in more than one
category, each of the following for such period: (a) Interest Expense, (b) Taxes, (c)
5 CREDIT AGREEMENT
depreciation and amortization expenses and (d) other non-cash expenses, including write-downs of non-current assets and unrealized non-
cash losses resulting from foreign currency balance sheet adjustments required under GAAP, and minus, to the extent credited in the
determination of Net Income for such period, non-cash credits for such period.
“Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, and (d) any other Person (other than a natural
person) who is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act or a Qualified
Institutional Buyer (as defined in Rule 144A promulgated under the Securities Act).
“Environmental Complaint” means any written or oral complaint, order, directive, claim, citation, notice of environmental report or
investigation, or other notice by any Governmental Authority or any other Person with respect to (a) air emissions, (b) spills, releases, or
discharges to soils, any improvements located thereon, surface water, groundwater, or the sewer, septic, waste treatment, storage, or disposal
systems servicing any Property of Borrower or any of the Guarantors, (c) solid or liquid waste disposal, (d) the use, generation, storage,
transportation, or disposal of any Hazardous Substance, or (e) other environmental, health or safety matters affecting any Property of
Borrower or any of the Guarantors or the business conducted thereon.
“Environmental Laws” means (a) the following federal laws as they may be cited, referenced, and amended from time to time: the Clean
Air Act, the Clean Water Act, the Safe Drinking Water Act, the Comprehensive Environmental Response, Compensation and Liability Act, the
Endangered Species Act, the Resource Conservation and Recovery Act, the Hazardous Materials Transportation Act, the Occupational Safety
and Health Act, the Oil Pollution Act, the Resource Conservation and Recovery Act, the Superfund Amendments and Reauthorization Act,
and the Toxic Substances Control Act; (b) any and all equivalent environmental statutes of any state in which Property of Borrower or any of
the Guarantors is situated, as they may be cited, referenced and amended from time to time; (c) any rules or regulations promulgated under or
adopted pursuant to the above federal and state laws; and (d) any other equivalent federal, state, or local statute or any requirement, rule,
regulation, code, ordinance, or order adopted pursuant thereto, including those relating to the generation, transportation, treatment, storage,
recycling, disposal, handling, or release of Hazardous Substances.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any successor statutes or
statute, together with all rules and regulations promulgated with respect thereto.
“ERISA Affiliate” means each Restricted Person and all members of a controlled group of corporations and all trades or businesses
(whether or not incorporated) under common control that, together with such Restricted Person, are treated as a single employer under
Section 414 of the Internal Revenue Code.
“ERISA Plan” means any employee pension benefit plan subject to Title IV of ERISA maintained by any ERISA Affiliate with respect to
which any Restricted Person has a fixed or contingent liability.
“Event of Default” has the meaning given to such term in Section 8.1.
6 CREDIT AGREEMENT
“Excluded Taxes” means, with respect to Administrative Agent, any Lender, or any other recipient of any payment to be made by or on
account of any obligation of Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however denominated), and
franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which
such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its Applicable Lending Office is
located, (b) any branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction in which
Borrower is located, and (c) in the case of a Foreign Lender, any withholding tax that is imposed on amounts payable to such Foreign Lender
at the time such Foreign Lender becomes a party hereto (or designates a new lending office) or is attributable to such Foreign Lender’s failure
or inability (other than as a result of a Change in Law) to comply with Section 3.3(e), except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from Borrower
with respect to such withholding tax pursuant to Section 3.3(a).
“Executive Order No. 13224” means Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, as the same has
been, or shall hereafter be, renewed, extended, amended or replaced.
“First/Second Lien Intercreditor Agreement” means that certain Amended and Restated Intercreditor Agreement dated as of the date
hereof among Borrower, Parent, certain Subsidiaries of Parent party thereto, Collateral Agent, Second Lien Facility Agent and, solely for
purposes of Section 10.14 thereof, Amegy.
“Fixed Rate” means a per annum rate equal to twenty percent (20%), provided that the Fixed Rate charged by any Person shall never
exceed the Highest Lawful Rate.
“Floor Contracts” means put option contracts that protect against falling oil and gas prices and do not require any payments in respect
thereof other than an initial premium or purchase price. For the avoidance of doubt, Floor Contracts do not include swaps or collars.
“Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which Borrower is resident for tax
purposes. For purposes of this definition, the United States of America, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.
“Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing
in commercial loans and similar extensions of credit in the ordinary course of its business.
“GAAP” means those generally accepted accounting principles and practices which are recognized as such by the Financial Accounting
Standards Board (or any generally recognized successor) and which, in the case of Restricted Persons and their consolidated Subsidiaries, are
applied for all periods after the date hereof in a manner consistent with the manner in which such principles and practices were applied to the
Initial Financial Statements. If any change in any accounting principle or practice is required by the Financial Accounting Standards Board (or
any such successor) in order for such principle or practice to continue as a generally accepted
7 CREDIT AGREEMENT
accounting principle or practice, all reports and financial statements required hereunder with respect to any Restricted Person or with respect
to any Restricted Person and its consolidated Subsidiaries may be prepared in accordance with such change, but all calculations and
determinations to be made hereunder may be made in accordance with such change only after notice of such change is given to each Lender,
and Lenders, Administrative Agent and Borrower agree to negotiate in good faith in respect of the modification of any covenants hereunder
that are affected by such change in order to cause them to measure substantially the same financial performance as the covenants in effect
immediately prior to such change.
“Gastar Power” means Gastar Power Pty Ltd., an Australian proprietary limited company.
“Governmental Authority” means the government of the United States, Canada, 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).
“Guaranties” means, collectively, the Guaranty dated the Closing Date by the Guarantors in favor of Administrative Agent, joinder
agreements related thereto entered into after the Closing Date by newly formed Domestic Subsidiaries of Parent or any of its Subsidiaries in
favor of Administrative Agent for the benefit of the Lenders in substantially the form of the exhibit thereto, and any other Guaranty executed
by any other Guarantor in favor of Administrative Agent for the benefit of the Lenders in such other form as shall be reasonably satisfactory
to Administrative Agent.
“Guarantor” means any Person who has guaranteed some or all of the Obligations pursuant to a guaranty listed on the Security Schedule
and any and all current or future Domestic Subsidiaries.
“Hazardous Substances” means flammables, explosives, radioactive materials, hazardous wastes, asbestos, or any material containing
asbestos, polychlorinated biphenyls (PCBs), toxic substances or related materials, petroleum, petroleum products, associated oil or natural gas
exploration, production, and development wastes, or any substances defined as “hazardous substances,” “hazardous materials,” “hazardous
wastes,” or “toxic substances” under the Comprehensive Environmental Response, Compensation and Liability Act, the Superfund
Amendments and Reauthorization Act, the Hazardous Materials Transportation Act, the Resource Conservation and Recovery Act, the Toxic
Substances Control Act, or any other Requirement of Law.
“Hedging Contract” means (a) any agreement providing for options, swaps, floors, caps, collars, forward sales or forward purchases
involving interest rates, commodities or commodity prices, equities, currencies, bonds, or indexes based on any of the foregoing, (b) any
option, futures or forward contract traded on an exchange, and (c) any other derivative agreement or other similar agreement or arrangement.
8 CREDIT AGREEMENT
“Highest Lawful Rate” means, with respect to each Lender Party to whom Obligations are owed, the maximum nonusurious rate of
interest that such Lender Party is permitted under applicable Law to contract for, take, charge, or receive with respect to such Obligations. All
determinations herein of the Highest Lawful Rate, or of any interest rate determined by reference to the Highest Lawful Rate, shall be made
separately for each Lender Party as appropriate to assure that the Loan Documents are not construed to obligate any Person to pay interest to
any Lender Party at a rate in excess of the Highest Lawful Rate applicable to such Lender Party.
“Indebtedness” means, as to any Person, without duplication,

(a) all liabilities (excluding capital, surplus, reserves for deferred income taxes, deferred compensation liabilities, other deferred liabilities
and credits and asset retirement obligations) which in accordance with GAAP would be included in determining total liabilities as shown on
the liability side of a balance sheet,
(b) all obligations of such Person evidenced by bonds, debentures, promissory notes, or similar evidences of indebtedness,
(c) all other indebtedness of such Person for borrowed money,
(d) all obligations of others, to the extent any such obligation is secured by a Lien on the assets of such Person (whether or not such
Person has assumed or become liable for the obligation secured by such Lien),
(e) all direct or contingent obligations of such Person under letters of credit, banker’s acceptances and similar instruments, and
(f) net obligations of such Person under any Commodity Hedge Agreements or Interest Rate Hedge Agreements.
“Indemnified Taxes” means Taxes other than Excluded Taxes.
“Indemnitee” has the meaning given to such term in Section 6.20.
“Initial Financial Statements” means (a) the audited annual consolidated financial statements of Parent dated as of December 31, 2007,
and (b) the unaudited quarterly consolidated financial statements of Parent dated as of September 30, 2008.
“Interest Expense” means, for any period for which the amount thereof is to be determined, any and all expenses relating to the accrual of
interest on Indebtedness of Parent on a consolidated basis with its consolidated Subsidiaries and including interest expense attributable to
capitalized leases.
“Interest Payment Date” means the first Business Day of each calendar month.
“Interest Rate Hedge Agreements” means interest rate floor, collar, cap, rate protection or hedge agreements.
9 CREDIT AGREEMENT
“Investment” in any Person means any stock, bond, note, or other evidence of Indebtedness, or any other security (other than current
trade and customer accounts) of, investment or partnership interest in or loan to, such Person.
“Law” means any statute, law, regulation, ordinance, rule, treaty, judgment, order, decree, permit, concession, franchise, license,
agreement or other governmental restriction of the United States or any state or political subdivision thereof or of any foreign country or any
department, province or other political subdivision thereof. Any reference to a Law includes any amendment or modification to such Law, and
all regulations, rulings, and other Laws promulgated under such Law.
“Lender Parties” means Administrative Agent and all Lenders.
“Lenders” means each signatory hereto (other than Borrower and any Restricted Person that is a party hereto), including Wayzata
Investment Partners LLC in its capacity as a Lender hereunder rather than as Administrative Agent, and the successors of each such party as
Lender hereunder pursuant to Section 10.5.
“Lenders Schedule” means Schedule 3 hereto.
“Liabilities” means, as to any Person, all indebtedness, liabilities and obligations of such Person, whether matured or unmatured,
liquidated or unliquidated, primary or secondary, direct or indirect, absolute, fixed or contingent, and whether or not required to be considered
pursuant to GAAP.
“Lien” means, with respect to any Property, any right or interest therein of a creditor to secure Liabilities owed to it or any other
arrangement with such creditor which provides for the payment of such Liabilities out of such Property or which allows such creditor to have
such Liabilities satisfied out of such Property prior to the general creditors of any owner thereof, including any lien, mortgage, security
interest, pledge, deposit, production payment, rights of a vendor under any title retention or conditional sale agreement or lease substantially
equivalent thereto, tax lien, mechanic’s or materialman’s lien, or any other charge or encumbrance for security purposes, whether arising by
Law or agreement or otherwise, but excluding any right of offset which arises without agreement in the ordinary course of business. “Lien”
also means any filed financing statement, any registration of a pledge (such as with an issuer of uncertificated securities), or any other
arrangement or action which would serve to perfect a Lien described in the preceding sentence, regardless of whether such financing
statement is filed, such registration is made, or such arrangement or action is undertaken before or after such Lien exists.
“Loan” has the meaning given to such term in Section 2.1.
“Loan Documents” means this Agreement, the Notes, the Security Documents, the Collateral Agency Agreement, the First/Second Lien
Intercreditor Agreement, and all other agreements, certificates, documents, instruments and writings at any time delivered in connection
herewith or therewith (exclusive of term sheets and commitment letters).
“Material Adverse Effect” means (a) any adverse effect on the business, operations, assets, properties, liabilities (actual or contingent)
or financial condition of Parent on a
10 CREDIT AGREEMENT
consolidated basis with its consolidated Subsidiaries which increases, in any material respect, the risk that any of the Obligations will not be
repaid as and when due, (b) any material and adverse effect upon the Collateral, (c) any material adverse effect on the validity or enforceability
of any Loan Document or (d) any material adverse effect on the rights or remedies of Administrative Agent, Collateral Agent, or Lenders under
any Loan Document.
“Maturity Date” means February 15, 2012.
“Mortgaged Properties” means all Oil and Gas Properties of Borrower and other Domestic Subsidiaries of Parent subject to a Lien in
favor of Collateral Agent, as security for the Obligations.
“Note” has the meaning given to such term in Section 2.1.
“Obligations” means all Liabilities from time to time owing by any Restricted Person to any Lender Party or Indemnitee under or pursuant
to any of the Loan Documents. “Obligation” means any part of the Obligations.
“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury or any successor Governmental
Authority.
“Oil and Gas Properties” means (i) all oil, gas and/or mineral leases, oil, gas or mineral properties, mineral servitudes and/or mineral rights
of any kind (including, without limitation, mineral fee interests, lease interests, farmout interests, overriding royalty and royalty interests, net
profits interests, oil payment interests, production payment interests and other types of mineral interests), and all oil and gas gathering,
treating, storage, processing and handling assets, (ii) all oil and gas gathering treating, storage, processing and handling assets, (iii) all
pipelines, and (iv) all platforms, wells, wellhead equipment, pumping units, flowlines, tanks, buildings, injection facilities, saltwater disposal
facilities, compression facilities, gathering systems, and other equipment.
“Other Taxes” means all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies
arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or otherwise
with respect to, this Agreement or any other Loan Document.
“Parent” has the meaning given to such term in the preamble hereto.
“Participant” has the meaning assigned to such term in clause (c) of Section 10.5.
“Percentage Share” means, with respect to any Lender, the percentage set forth with respect to such Lender on the Lender’s Schedule,
or, if applicable, on an Assignment and Acceptance Agreement; provided that if the Commitments of each Lender to make Loans have been
terminated, “Percentage Share” shall mean the percentage obtained by dividing (i) the sum of the unpaid principal balance of such Lender’s
Loans at the time in question, by (ii) the sum of the aggregate unpaid principal balance of all Loans at such time.
11 CREDIT AGREEMENT
“Permitted Liens” means:

(a) Liens for taxes, assessments, or other governmental charges or levies not yet due or which (if foreclosure, distraint, sale, or other
similar proceedings shall not have been initiated) are being contested in good faith by appropriate proceedings, and such reserve as may be
required by GAAP shall have been made therefor,
(b) Liens in connection with workers’ compensation, unemployment insurance or other social security (other than Liens created by
Section 4068 of ERISA), old age pension, employee benefits, or public liability obligations which are not yet due or which are being contested
in good faith by appropriate proceedings, if such reserve as may be required by GAAP shall have been made therefor,
(c) Liens in favor of vendors, carriers, warehousemen, repairmen, mechanics, workmen, materialmen, constructors, laborers, landlords or
similar Liens arising by operation of law in the ordinary course of business in respect of obligations that are not yet due or which are being
contested in good faith by appropriate proceedings, if such reserve as may be required by GAAP shall have been made therefor,
(d) Liens in favor of operators and non-operators under joint operating agreements or similar contractual arrangements arising in the
ordinary course of the business of Borrower to secure amounts owing, which amounts are not yet due or are being contested in good faith by
appropriate proceedings, if such reserve as may be required by GAAP shall have been made therefor,
(e) Liens under production sales agreements, division orders, operating agreements, and other agreements customary in the oil and gas
business for processing, producing, and selling hydrocarbons securing obligations not constituting Indebtedness and provided that such
Liens do not secure obligations to deliver hydrocarbons at some future date without receiving full payment therefor within 90 days of delivery,
(f) covenants, liens, rights, easements, rights of way, restrictions, and other similar encumbrances, and minor defects in the chain of title
which are customarily accepted in the oil and gas financing industry, none of which interfere with the ordinary conduct of the business of
Borrower or materially detract from the value or use of the Property to which they apply,
(g) Liens securing the purchase price of Property, including vehicles and equipment, acquired by Borrower in the ordinary course of
business (including Liens existing under conditional sale or title retention contracts), provided that such Liens cover only the acquired
Property and the aggregate unpaid purchase price secured by such Liens does not exceed $500,000,
(h) Liens securing leases of equipment, provided that, as to any particular lease, the Lien covers only the relevant leased equipment and
secures only amounts which are not yet due and payable under the relevant lease or are being contested in good faith by appropriate
proceedings and such reserve as required by GAAP shall have been made therefor,
(i) Liens in cash not to exceed the aggregate amount of $5,000,000 in favor or for the benefit of providers of such Commodity Hedge
Agreements and Interest Rate Hedge Agreements approved by the Administrative Agent securing Indebtedness of Borrower in respect of
12 CREDIT AGREEMENT
Commodity Hedge Agreements and Interest Rate Hedge Agreements (other than such as constitute a portion of the Secured Hedging
Obligations) permitted pursuant to the provisions of Section 7.1,
(j) Liens securing the Second Lien Indebtedness, so long as subject to the terms of the First/Second Lien Intercreditor Agreement,
(k) Liens securing the Amegy Indebtedness and the Secured Hedging Obligations, so long as subject to the terms of the Collateral
Agency Agreement, and
(l) Liens in favor of Administrative Agent and other Liens expressly permitted hereunder or in the Security Documents.
“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity.
“Prepayment Premium” has the meaning given to such term in Section 2.6.
“Property” means any interest in any kind of property or asset, whether real, personal or mixed, tangible or intangible.
“Proved Reserves” means “Proved Reserves” as defined in the Petroleum Resources Management System as in effect at the time in
question (in this definition, the “PRMS”) prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers and reviewed
and jointly sponsored by the World Petroleum Council, the American Association of Petroleum Geologists and the Society of Petroleum
Evaluation Engineers (or any generally recognized successor organizations). “Proved Developed Producing Reserves” means Proved
Reserves that are categorized as “Developed Producing Reserves” in the PRMS, “Proved Developed Nonproducing Reserves” means Proved
Reserves that are categorized as “Developed Nonproducing Reserves” in the PRMS, and “Proved Undeveloped Reserves” means Proved
Reserves that are categorized as “Undeveloped Reserves” in the PRMS.
“Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect.
“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents and
advisors of such Person and of such Person’s Affiliates.
“Release of Hazardous Substances” means any emission, spill, release, disposal, or discharge, except in accordance with a valid permit,
license, certificate, or approval of the relevant Governmental Authority, of any Hazardous Substance into or upon (a) the air, (b) soils or any
improvements located thereon, (c) surface water or groundwater, or (d) the sewer or septic system, or the waste treatment, storage, or disposal
system servicing any Property of Borrower or any of the Guarantors.
“Required Lenders” means Lenders whose aggregate Percentage Shares exceed fifty percent (50%).
13 CREDIT AGREEMENT
“Requirement of Law” means, as to any Person, the certificate or articles of incorporation and by-laws, the certificate or articles of
organization and regulations, operating agreement or limited liability company agreement, the agreement of limited partnership or other
organizational or governing documents of such Person, and any applicable law, treaty, ordinance, order, judgment, rule, decree, regulation, or
determination of an arbitrator, court, or other Governmental Authority, including rules, regulations, orders, and requirements for permits,
licenses, registrations, approvals, or authorizations, in each case as such now exist or may be hereafter amended and are applicable to or
binding upon such Person or any of its Property or to which such Person or any of its Property is subject.
“Responsible Officer” means, with respect to Borrower, the Chief Executive Officer, President or Chief Financial Officer of Borrower, and
with respect to any other Restricted Person, if such Restricted Person is a corporation, the President or Chief Financial Officer of such
Restricted Person, if such Restricted Person is a limited liability company, a Manager or officer of such Restricted Person, as applicable, and if
such Restricted Person is a limited partnership, the applicable officer of the General Partner of such limited partnership.
“Restricted Person” means any of Parent, Borrower, Gastar Power, and each Guarantor.
“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.
“Second Lien Credit Agreement” means the Indenture dated as of November 29, 2007 entered into by and among Borrower, Parent,
certain other guarantors, and the Second Lien Facility Agent, as the same may be amended, supplemented, restated or otherwise modified from
time to time in compliance with applicable provisions of the First/Second Lien Intercreditor Agreement.
“Second Lien Facility Agent” means Wells Fargo Bank, National Association, as indenture trustee for the holders of the evidences of
the Second Lien Indebtedness, and its successors in such capacity.
“Second Lien Indebtedness” means Indebtedness of Borrower under the Second Lien Credit Agreement which is subject to the
provisions of the First/Second Lien Intercreditor Agreement.
“Secured Counterparties” means the Secured Third Party Hedge Counterparties and Amegy Bank Group Counterparties.
“Secured Creditors” means the Lender Parties, Amegy, the Amegy Bank Group Lenders, and the Secured Counterparties.
“Secured Hedging Contract” means Commodity Hedge Agreements, Interest Rate Hedge Agreements, and the respective confirmations
from time to time executed and delivered thereunder, together with all certificates, documents, instruments or agreements executed and
delivered by Borrower, Parent, or any other Restricted Person for the benefit of a Secured Counterparty in connection therewith.
14 CREDIT AGREEMENT
“Secured Hedging Obligations” means all obligations of Borrower or any Restricted Person arising from time to time under the Secured
Hedging Contracts entered into with the Secured Counterparties.
“Secured Third Party Hedge Counterparty” means any of BP Corporation North America Inc. and any other Person reasonably
satisfactory to Administrative Agent that is a counterparty of Parent, Borrower or any Domestic Subsidiary of Parent to a Commodity Hedge
Agreement or Interest Rate Hedge Agreement, in each case only if that counterparty is party to the Collateral Agency Agreement.
“Security Documents” means (a) all documents listed on the Security Schedule and (b) all other security agreements, deeds of trust,
mortgages, chattel mortgages, pledges, guaranties, financing statements, continuation statements, extension agreements, subordination
agreements, intercreditor agreements, and other agreements or instruments now, heretofore, or hereafter delivered by any Restricted Person to
Administrative Agent or Collateral Agent in connection with this Agreement or any transaction contemplated hereby to secure or guarantee
the payment of any part of the Obligations or the performance of any Restricted Person’s other duties and obligations under the Loan
Documents.
“Security Schedule” means Schedule 2 hereto.
“Subsidiary” means, with respect to any Person, any corporation, association, partnership, limited liability company, joint venture, or
other business or corporate entity, enterprise or organization which is directly or indirectly (through one or more intermediaries) controlled by
or owned fifty percent or more by such Person.
“Subsidiary Guarantors” means Domestic Subsidiaries of Parent that are Guarantors.
“Superfund Site” means those sites listed on the Environmental Protection Agency National Priority List and eligible for remedial action
or any comparable state registries or list in any state of the United States.
“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed
by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.
“Termination Event” means (a) the occurrence with respect to any ERISA Plan of (i) a reportable event described in Section 4043(c)(5) or
(6) of ERISA or (ii) any other reportable event described in Section 4043(c) of ERISA other than a reportable event not subject to the provision
for 30-day notice to the Pension Benefit Guaranty Corporation pursuant to a waiver by such corporation under Section 4043(a) or 4043(b)(4) of
ERISA, or (b) the withdrawal of any ERISA Affiliate from an ERISA Plan during a plan year in which it was a “substantial employer” as defined
in Section 4001(a)(2) of ERISA, or (c) the filing of a notice of intent to terminate any ERISA Plan or the treatment of any ERISA Plan
amendment as a termination under Section 4041(c) of ERISA, or (d) the institution of proceedings to terminate any ERISA Plan by the Pension
Benefit Guaranty Corporation under Section 4042 of ERISA, or (e) any other event or condition which might constitute grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any ERISA Plan.
15 CREDIT AGREEMENT
“Tribunal” means any government, any arbitration panel, any court or any governmental department, commission, board, bureau, agency
or instrumentality of the United States of America or any state, province, commonwealth, nation, territory, possession, county, parish, town,
township, village or municipality, whether now or hereafter constituted or existing.
“UCC” means the Uniform Commercial Code in effect in the State of Minnesota from time to time.
“USA Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools required to Intercept and Obstruct
Terrorism Act of 2001, Pub. L. No. 107 56, 115 Stat. 272 (2001), as the same has been, or shall hereafter be, renewed, extended, amended or
replaced.
Section 1.2. Exhibits and Schedules; Additional Definitions. All Exhibits and Schedules attached to this Agreement are a part hereof for
all purposes. Reference is hereby made to the Security Schedule for the meaning of certain terms defined therein and used but not defined
herein, which definitions are incorporated herein by reference.
Section 1.3. Terms Generally; References and Titles. The definitions of terms herein shall apply equally to the singular and plural forms of
the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The
words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The word “will” shall be
construed to have the same meaning and effect as the word “shall.” Unless the context requires otherwise (a) any definition of or reference to
any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set
forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words
“herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any
particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall, unless otherwise specified,
refer to such law or regulation as amended, modified or supplemented from time to time and (f) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights. References to any document, instrument, or agreement (a) shall include all exhibits, schedules, and
other attachments thereto, and (b) shall include all documents, instruments, or agreements issued or executed in replacement thereof. Titles
appearing at the beginning of any subdivisions are for convenience only and do not constitute any part of such subdivisions and shall be
disregarded in construing the language contained in such subdivisions. The phrases “this section” and “this subsection” and similar phrases
refer only to the sections or subsections hereof in which such phrases occur. The word “or” is not exclusive. References to a Person’s
“discretion” means its sole and absolute discretion.
16 CREDIT AGREEMENT
Accounting terms have the meanings assigned to them by GAAP, as applied by the accounting entity to which they refer. References to
“days” shall mean calendar days, unless the term “Business Day” is used. Unless otherwise specified, references herein to any particular
Person also refer to its successors and permitted assigns.
Section 1.4. Calculations and Determinations. All calculations under the Loan Documents of interest chargeable with respect to Loans
and of fees shall be made on the basis of actual days elapsed (including the first day but excluding the last) and a year of 365 or 366 days, as
the case may be. Each determination by a Lender Party of amounts to be paid under Article III or any other matters which are to be determined
hereunder by a Lender Party shall, in the absence of manifest error, be conclusive and binding. Unless otherwise expressly provided herein or
unless Required Lenders otherwise consent all financial statements and reports furnished to any Lender Party hereunder shall be prepared and
all financial computations and determinations pursuant hereto shall be made in accordance with GAAP.
Section 1.5. Joint Preparation; Construction of Indemnities and Releases. This Agreement and the other Loan Documents have been
reviewed and negotiated by sophisticated parties with access to legal counsel and no rule of construction shall apply hereto or thereto which
would require or allow any Loan Document to be construed against any party because of its role in drafting such Loan Document. All
indemnification and release provisions of this Agreement shall be construed broadly (and not narrowly) in favor of the Persons receiving
indemnification or being released.
ARTICLE II - The Loans
Section 2.1. Commitments to Lend; Notes. Subject to the terms and conditions hereof, each Lender severally agrees to make, on the
Closing Date, a loan to Borrower in an amount equal to such Lender’s Commitment (each, a “Loan”). Any amount borrowed under this
Section 2.1 and subsequently repaid or prepaid may not be reborrowed. The obligation of Borrower to repay to each Lender the aggregate
amount of all Loans made by such Lender, together with interest accruing in connection therewith, shall be evidenced by a single promissory
note (herein called such Lender’s “Note”) made by Borrower payable to the order of such Lender in the form of Exhibit A with appropriate
insertions. The amount of principal owing on any Lender’s Note at any given time shall be the aggregate amount of all Loans theretofore made
by such Lender minus all payments of principal theretofore received by such Lender on such Note. Interest on each Note shall accrue and be
due and payable as provided herein. Each Note shall be due and payable as provided herein, and shall be due and payable in full on the
Maturity Date.
Section 2.2. Requests for Loans. Borrower must give to Administrative Agent written notice of the requested Borrowing of Loans to be
advanced by Lenders on the Closing Date. Such notice constitutes a “Borrowing Notice” hereunder and must be made on the Closing Date in
the form and substance of the “Borrowing Notice” attached hereto as Exhibit B, duly completed. Upon receipt of such Borrowing Notice,
Administrative Agent shall give each Lender prompt notice of the terms thereof. If all conditions precedent to such new Loans have been met,
each Lender will on the date requested promptly remit to Administrative Agent at Administrative Agent’s office in Wayzata, Minnesota the
amount of such Lender’s new Loan in
17 CREDIT AGREEMENT
immediately available funds, and upon receipt of such funds, unless to its actual knowledge any conditions precedent to such Loans have
been neither met nor waived as provided herein, Administrative Agent shall promptly make such Loans available to Borrower. The failure of
any Lender to make any new Loan to be made by it hereunder shall not relieve any other Lender of its obligation hereunder, if any, to make its
new Loan, but no Lender shall be responsible for the failure of any other Lender to make any new Loan to be made by such other Lender.
Section 2.3. Use of Proceeds. Borrower shall use all Loans to (a) make the payments described in Schedule 4, (b) acquire Oil and Gas
Properties in the current areas of the Restricted Persons’ operations, and (c) finance capital expenditures related to such Oil and Gas Properties
and to the Oil and Gas Properties that the Restricted Persons own on the Closing Date. In no event shall the funds from any Loan be used
directly or indirectly by any Person for personal, family, household or agricultural purposes or for the purpose, whether immediate, incidental
or ultimate, of purchasing, acquiring or carrying any “margin stock” (as such term is defined in Regulation U promulgated by the Board of
Governors of the Federal Reserve System) or to extend credit to others directly or indirectly for the purpose of purchasing or carrying any
such margin stock. Borrower represents and warrants that Borrower is not engaged principally, or as one of Borrower’s important activities, in
the business of extending credit to others for the purpose of purchasing or carrying such margin stock.
Section 2.4. Interest Rates and Fees; Payment Dates.

(a) Interest Rate; Default Rate. Each Loan shall bear interest on each day outstanding at the Fixed Rate, provided that if an Event of
Default shall have occurred and be continuing, all outstanding Loans (and all past due interest thereon) shall bear interest at the Default Rate
until the earlier of (i) the first date thereafter upon which there shall be no Event of Default continuing and (ii) the date on which Required
Lenders shall elect for the Loans to bear interest at the Fixed Rate.
(b) Interest Payment Dates. On each Interest Payment Date, Borrower shall pay all interest then accrued on the Loans in immediately
available funds.
Section 2.5. Optional Prepayments. Borrower may prepay the Loans at any time and from time to time, in whole or in part, upon no less
than five (5) days’ and no more than sixty (60) days’ prior written notice to Administrative Agent of such prepayment, which such notice shall
include the amount of such prepayment and the date on which such prepayment shall be made. Upon the giving of any such notice, the
principal amount of the Loans specified in such notice shall become due and payable on the date specified therein. All prepayments hereunder
shall be in an aggregate minimum amount of $1,000,000 and integral multiples of $100,000 in excess of that amount and shall be accompanied by
the applicable Prepayment Premium (if any) described in Section 2.6. Each prepayment of principal under this section shall be accompanied by
all interest then accrued and unpaid on the principal so prepaid. Any principal or interest prepaid pursuant to this section shall be in addition
to, and not in lieu of, all payments otherwise required to be paid under the Loan Documents at the time of such prepayment.
Section 2.6. Prepayment Premium. Any principal amount of the Loans prepaid prior to the Maturity Date shall be accompanied by a
prepayment premium equal to the product of the principal amount so prepaid times the percentage set forth in the following table opposite the
same time period in which such prepayment occurs (the “Prepayment Premium”):
Tim e
Pe riod Pe rce n tage
Closing Date through December 31, 2009 10%
January 1, 2010 through December 31, 2010 5%
January 1, 2011 and thereafter 0%
18 CREDIT AGREEMENT
Notwithstanding the foregoing, in the case of a prepayment pursuant to Section 2.11 on or prior to December 31, 2010, the Prepayment
Premium will be 5%.
Section 2.7. Obligations of Lenders Several. The obligations of the Lenders hereunder to make Loans and to make payments pursuant to
Section 2.2 are several and not joint. The failure of any Lender to make any Loan, to fund any such participation or to make any payment under
Section 10.4(b) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and
no Lender shall be responsible for the failure of any other Lender to so make its committed Loan, to purchase its participation or to make its
payment under Section 10.4(b).
Section 2.8. Letters in Lieu of Transfer Orders or Division Orders. Administrative Agent agrees that it will not instruct Collateral Agent to
send any of the letters in lieu of transfer or division orders provided pursuant to the provisions of Section 6.7 to the addressees thereof unless
an Event of Default has occurred and is continuing, at which time Administrative Agent may, at its option and in addition to the exercise of
any of its other rights and remedies, instruct Collateral Agent to send any or all of such letters.
Section 2.9. Power of Attorney. Borrower hereby designates Administrative Agent as its agent and attorney-in-fact, to act in its name,
place, and stead solely for the purpose of completing and, upon the occurrence and the continuance of an Event of Default, delivering any and
all of the letters in lieu of transfer or division orders delivered by Borrower pursuant to the provisions of Section 6.7, including completing any
blanks contained in such letters and attaching exhibits thereto describing the relevant Collateral. Borrower hereby ratifies and confirms all that
Administrative Agent shall lawfully do or cause to be done by virtue of this power of attorney and the rights granted with respect to such
power of attorney. This power of attorney is coupled with the interests of Administrative Agent in the Collateral, shall commence and be in full
force and effect as of the Closing Date and shall remain in full force and effect and shall be irrevocable so long as any Obligation remains
outstanding or unpaid or any Commitment exists. The powers conferred on Administrative Agent by this appointment are solely to protect the
interests of Administrative Agent, Collateral Agent, Lenders and any other Secured Creditors under the Loan Documents with respect to the
assignment of production proceeds under certain of the Security Documents and shall not impose any duty upon Administrative Agent to
exercise any such powers. The power of attorney under this Section 2.9 is expressly limited to the rights and powers set forth herein and no
additional rights or powers are herein created or implied. Administrative Agent shall be accountable only for amounts that it actually receives
as a result of the exercise of such powers and shall not be responsible to Borrower or any other Person for any act or failure to act with respect
to such powers, except for gross negligence or willful misconduct.
19 CREDIT AGREEMENT
Section 2.10. Security Interest in Accounts; Right of Offset. As security for the payment and performance of the Obligations, Borrower
hereby transfers, assigns, and pledges to Administrative Agent and each Lender (for the pro rata benefit of such Persons) and grants to
Administrative Agent and each Lender (for the pro rata benefit of such Persons) a security interest in all of its funds now or hereafter or from
time to time on deposit with or in the custody of Administrative Agent or such Lender, with such interest of Administrative Agent and the
Lenders to be retransferred, reassigned, and/or released at the expense of Borrower upon payment in full and complete performance of all
outstanding Obligations. All remedies as secured party or assignee of such funds shall be exercisable upon the occurrence of any Event of
Default, regardless of whether the exercise of any such remedy would result in any penalty or loss of interest or profit with respect to any
withdrawal of funds deposited in a time deposit account prior to the maturity thereof. Furthermore, Borrower hereby grants to Administrative
Agent and each Lender (for the pro rata benefit of such Persons) the right, exercisable at such time as any Obligation shall mature, whether by
acceleration of maturity or otherwise, of offset or banker’s lien against all of its funds now or hereafter or from time to time on deposit with
Administrative Agent or such Lender, regardless of whether the exercise of any such remedy would result in any penalty or loss of interest or
profit with respect to any withdrawal of funds deposited in a time deposit account prior to the maturity thereof.
Section 2.11. Change of Control Prepayment. Should there occur a Change of Control, then, immediately and without notice (a) all
Obligations under the Loan Documents shall automatically become immediately due and payable, without presentment, demand, protest,
notice of protest, default, or dishonor, notice of intent to accelerate maturity, notice of acceleration of maturity, or other notice of any kind, all
of which are hereby expressly waived by the Restricted Persons, and (b) the Commitments, if any, shall immediately cease and terminate unless
and until reinstated by Administrative Agent and Lenders in writing.
ARTICLE III - Payments to Lenders
Section 3.1. General Procedures. Borrower will make each payment which it owes under the Loan Documents to Administrative Agent for
the account of the Lender Party to whom such payment is owed, in lawful money of the United States of America, without set-off, deduction or
counterclaim, and in immediately available funds. Each such payment must be received by Administrative Agent not later than 1:00 p.m.,
Wayzata, Minnesota time, on the date such payment becomes due and payable. Any payment received by Administrative Agent after such
time will be deemed to have been made on the next following Business Day. Should any such payment become due and payable on a day other
than a Business Day, the maturity of such payment shall be extended to the next succeeding Business Day, and, in the case of a payment of
principal or past due interest, interest shall accrue and be payable thereon for the period of such extension as provided in the Loan Document
under which such payment is due. When Administrative Agent collects or receives money on account of the Obligations, Administrative
Agent shall distribute all money so collected or received, and each Lender Party shall apply all such money so distributed, as follows (except
as otherwise provided in Section 8.3):
(a) first, for the payment of all Obligations which are then due (and if such money is insufficient to pay all such Obligations, first to any
reimbursements due to Administrative Agent under Section 6.24 or 10.4 and then to the partial payment of all other Obligations then due in
proportion to the amounts thereof, or as Lender Parties shall otherwise agree);
20 CREDIT AGREEMENT
(b) then for the prepayment of amounts owing under the Loan Documents (other than principal of the Loans) if so specified by Borrower;
(c) then for the prepayment of principal of the Loans, together with accrued and unpaid interest on the principal so prepaid; and
(d) last, for the payment or prepayment of any other Obligations.
All payments applied to principal or interest on any Note shall be applied first to any interest then due and payable, then to principal then due
and payable, and last to any prepayment of principal and interest (and any related Prepayment Premium) in compliance with Sections 2.5 and
2.6. All distributions of amounts described in any of subsections (b), (c) or (d) above shall be made by Administrative Agent pro rata to each
Lender Party then owed Obligations described in such subsection in proportion to all amounts owed to all Lender Parties which are described
in such subsection; provided that if any Lender then owes payments to Administrative Agent under Section 10.4(b), any amounts otherwise
distributable under this section to such Lender shall be deemed to belong to or Administrative Agent to the extent of such unpaid payments,
and Administrative Agent shall apply such amounts to make such unpaid payments rather than distribute such amounts to such Lender.
Section 3.2. Increased Costs.

(a) Increased Costs Generally. If any Change in Law shall:
(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against
assets of, deposits with or for the account of, or credit extended or participated in by, any Lender; or
(ii) subject any Lender to any tax of any kind whatsoever with respect to this Agreement or change the basis of taxation of
payments to such Lender in respect thereof (except for Indemnified Taxes or Other Taxes covered by Section 3.3 and the imposition of, or
any change in the rate of, any Excluded Tax payable by such Lender);
and the result of any of the foregoing shall be to reduce the amount of any sum received or receivable by such Lender hereunder (whether of
principal, interest or any other amount) then, upon request of such Lender, Borrower will pay to such Lender such additional amount or
amounts as will compensate such Lender for such reduction suffered.
(b) Capital Requirements. If any Lender determines that any Change in Law affecting such Lender or any lending office of such Lender or
such Lender’s holding company, if any, regarding capital requirements has the effect of reducing the rate of return on such Lender’s capital or
on the capital of such Lender’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans
made by such Lender to a level
21 CREDIT AGREEMENT
below that which such Lender or such Lender’s holding company would have achieved but for such Change in Law (taking into consideration
such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy), then from time to time Borrower
will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such
reduction suffered.
(c) Certificates for Reimbursement. A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender
or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to Borrower shall be conclusive
absent manifest error. Borrower shall pay such Lender, as the case may be, the amount shown as due on any such certificate within ten
(10) days after receipt thereof.
(d) Delay in Requests. Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a
waiver of such Lender’s right to demand such compensation, provided that Borrower shall not be required to compensate a Lender pursuant
to this Section for any increased costs incurred or reductions suffered more than nine (9) months prior to the date that such Lender notifies
Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation
therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred
to above shall be extended to include the period of retroactive effect thereof).
Section 3.3. Taxes.

(a) Payments Free of Taxes. Any and all payments by or on account of any obligation of Borrower hereunder or under any other Loan
Document shall be made free and clear of and without reduction or withholding for any Indemnified Taxes or Other Taxes, provided that if
Borrower shall be required by applicable law to deduct any Indemnified Taxes (including any Other Taxes) from such payments, then (i) the
sum payable shall be increased by the amount necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section) Administrative Agent or Lender, as the case may be, receives an amount equal to the sum it would
have received had no such deductions been made, (ii) Borrower shall make such deductions and (iii) Borrower shall timely pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law.
(b) Payment of Other Taxes by Borrower. Without limiting the provisions of paragraph (a) above, Borrower shall timely pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable law.
(c) Indemnification by Borrower. Borrower shall indemnify Administrative Agent and each Lender, within 10 days after demand therefor,
for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by Administrative Agent or such Lender and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to Borrower by a Lender
(with a copy to Administrative Agent), or by Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent
manifest error.
22 CREDIT AGREEMENT
(d) Evidence of Payments. As soon as reasonably practicable after any payment of Indemnified Taxes or Other Taxes by Borrower to a
Governmental Authority, Borrower shall deliver to Administrative Agent the original or a certified copy of a receipt issued by such
Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment
reasonably satisfactory to Administrative Agent.
(e) Status of Lenders. Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the
jurisdiction in which Borrower is resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments
hereunder or under any other Loan Document shall deliver to Borrower (with a copy to Administrative Agent), at the time or times prescribed
by applicable law or reasonably requested by Borrower or Administrative Agent, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any
Lender, if requested by Borrower or Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably
requested by Borrower or Administrative Agent as will enable Borrower or Administrative Agent to determine whether or not such Lender is
subject to backup withholding or information reporting requirements.
Without limiting the generality of the foregoing, in the event that Borrower is resident for tax purposes in the United States of America,
any Foreign Lender shall deliver to Borrower and Administrative Agent (in such number of copies as shall be requested by the recipient) on or
prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the request of
Borrower or Administrative Agent, but only if such Foreign Lender is legally entitled to do so), whichever of the following is applicable:
(i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax treaty to which
the United States of America is a party,
(ii) duly completed copies of Internal Revenue Service Form W-8ECI,
(iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code,
(x) a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a
“10 percent shareholder” of Borrower within the meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation”
described in section 881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form W-8BEN, or
(iv) any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in United States Federal
withholding tax duly completed together with such supplementary documentation as may be prescribed by applicable law to permit
Borrower to determine the withholding or deduction required to be made.
23 CREDIT AGREEMENT
(f) Treatment of Certain Refunds. If a Lender determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes
as to which it has been indemnified by Borrower or with respect to which Borrower has paid additional amounts pursuant to this Section, it
shall pay to Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by
Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of such
Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that
Borrower, upon the request of such Lender agrees to repay the amount paid over to Borrower (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to such Lender in the event such Lender is required to repay such refund to such
Governmental Authority. This subsection shall not be construed to require Administrative Agent or any Lender to make available its tax
returns (or any other information relating to its taxes that it deems confidential) to Borrower or any other Person.
Section 3.4. Payments by Borrower; Presumptions by Administrative Agent. Unless Administrative Agent shall have received notice
from Borrower prior to the date on which any payment is due to Administrative Agent for the account of Lenders hereunder that Borrower will
not make such payment, Administrative Agent may assume that Borrower has made such payment on such date in accordance herewith and
may, in reliance upon such assumption, distribute to the Lenders the amount due. In such event, if Borrower has not in fact made such
payment, then each of the Lenders severally agrees to repay to Administrative Agent forthwith on demand the amount so distributed to such
Lender, with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to
Administrative Agent, at the Fixed Rate.
ARTICLE IV - Conditions Precedent to Lending
Section 4.1. Closing Conditions. No Lender has any obligation to make its Loan, unless all of the following conditions have been
satisfied to Administrative Agent’s satisfaction:
(a) Loan Documents. Administrative Agent shall have received counterparts of each Loan Document originally executed and delivered
by each applicable Restricted Person and in such numbers as Administrative Agent or its counsel may reasonably request.
(b) Organizational Documents; Incumbency. Administrative Agent shall have received (i) copies of each organizational document
executed and delivered by each Restricted Person, as applicable, and, to the extent applicable, certified as of a recent date by the appropriate
governmental official, each dated the Closing Date or a recent date prior thereto; (ii) signature and incumbency certificates of the officers of
such Person executing the Loan Documents to which it is a party; (iii) resolutions of the Board of Directors or similar governing body of each
Restricted Person approving and authorizing the execution, delivery and performance of this Agreement and the other Loan Documents to
which it is a party or by which it or its assets may be bound as of the Closing Date, certified as of the Closing Date by a Responsible Officer as
being in full force and effect without modification or amendment; (iv) an existence and good standing certificate from the applicable
Governmental Authority of each Restricted Person’s jurisdiction of incorporation, organization or formation and in each jurisdiction in which it
owns real property Collateral, each dated a recent date prior to the Closing Date; and (v) such other documents as Administrative Agent may
reasonably request.
24 CREDIT AGREEMENT
(c) Closing Certificate. Administrative Agent shall have received a “Closing Certificate” of a Responsible Officer of Borrower, of even
date with this Agreement, in the form attached as Exhibit E.
(d) Governmental Authorizations and Consents. Each Restricted Person shall have obtained all Governmental Authorizations and all
consents of other Persons, in each case that are necessary or advisable in connection with the transactions contemplated by the Loan
Documents and each of the foregoing shall be in full force and effect and in form and substance reasonably satisfactory to Administrative
Agent. All applicable waiting periods shall have expired without any action being taken or threatened by any competent authority which
would restrain, prevent or otherwise impose adverse conditions on the transactions contemplated by the Loan Documents or the financing
thereof and no action, request for stay, petition for review or rehearing, reconsideration, or appeal with respect to any of the foregoing shall be
pending, and the time for any applicable agency to take action to set aside its consent on its own motion shall have expired.
(e) Environmental Reports. Administrative Agent shall have received reports and other information, in form, scope and substance
reasonably satisfactory to Administrative Agent, regarding environmental matters relating to Borrower’s material real property assets.
(f) Evidence of Insurance. Administrative Agent shall have received a certificate from Borrower’s insurance broker or other evidence
reasonably satisfactory to Administrative Agent that all insurance required to be maintained pursuant to Section 6.19 is in full force and effect
and that Administrative Agent and Lenders have been named as additional insured thereunder and Collateral Agent has been named loss
payee thereunder as their interests may appear and to the extent required under Section 6.19.
(g) Opinions of Counsel to Restricted Persons. Administrative Agent shall have received executed copies of the favorable written
opinions of (i) Burnet, Duckworth & Palmer, Alberta, Canada counsel to Parent, (ii) Vinson & Elkins LLP, U.S. counsel to each of the
Guarantors organized under the laws of the State of Delaware and special Texas and New York counsel to Borrower and each of the
Guarantors, (iii) Warner Norcross & Judd, LLP, U.S. counsel to each of the Guarantors organized under the laws of the State of Michigan,
(iv) Leonard, Street and Deinard, special Minnesota counsel to Borrower and each of the Guarantors, (v) Watkins, Dulac and Roe P.C., special
Pennsylvania counsel to Borrower and each of the Guarantors, (vi) Spilman Thomas and Battle, PLLC, special West Virginia counsel to
Borrower and each of the Guarantors, and (vii) Blake Dawson, special Australia counsel to Borrower and each of the Guarantors, in each case
dated as of the Closing Date and otherwise in form and substance reasonably satisfactory to Administrative Agent (and each Restricted
Person hereby instructs such counsel to deliver such opinions to Administrative Agent and Lenders).
(h) Fees. Administrative Agent shall have received all commitment, facility, agency, recording, filing, and other fees or reimbursements
(including reimbursement of its fees and expenses of legal counsel and of due diligence) required to be paid to Administrative Agent or
25 CREDIT AGREEMENT
any Lender pursuant to any Loan Documents or any commitment agreement heretofore entered into. Administrative Agent shall have received
payment from Borrower for estimated fees charged by filing officers and other public officials incurred or to be incurred in connection with
filing any recordation of any Security Documents and for which invoices have been presented as of the Closing Date.
(i) Financial Statements. Lenders shall have received the Initial Financial Statements, which shall be in form and substance reasonably
satisfactory to Administrative Agent, together with a certificate by an Responsible Officer certifying the Initial Financial Statements.
(j) Title. Administrative Agent shall have received title reports and title opinions in form, substance and authorship satisfactory to
Administrative Agent, with respect to Borrower’s oil and gas reserves representing a percentage determined by Administrative Agent of the
present discounted value of Borrower’s proven oil and gas reserves in connection with the preclosing due diligence.
(k) No Litigation. There shall not exist any action, suit, investigation, litigation or proceeding or other legal or regulatory developments,
pending or threatened in any court or before any arbitrator or Governmental Authority that, in the reasonable opinion of Administrative
Agent, singly or in the aggregate, materially impairs the financing hereunder or any of the other transactions contemplated by the Loan
Documents, or that could cause a Material Adverse Effect.
(l) Completion of Proceedings. All partnership, corporate and other proceedings taken or to be taken in connection with the transactions
contemplated hereby and all documents incidental thereto not previously found acceptable by Administrative Agent and its counsel shall be
reasonably satisfactory in form and substance to Administrative Agent and such counsel, and Administrative Agent and such counsel shall
have received all such counterpart originals or certified copies of such documents as Administrative Agent may reasonably request.
(m) Due Diligence. Administrative Agent and Lenders shall have completed satisfactory due diligence review of the assets, liabilities,
business, operations and condition (financial or otherwise) of the Restricted Persons, including, a review of their Oil and Gas Properties and all
legal, financial, accounting, governmental, environmental, tax and regulatory matters, and fiduciary aspects of the proposed financing.
(n) Other Documentation. Administrative Agent shall have received all documents and instruments which Administrative Agent has
then reasonably requested, in addition to those described in this Section 4.1. All such additional documents and instruments shall be
reasonably satisfactory to Administrative Agent in form, substance and date.
(o) Representations True. All representations and warranties made by any Restricted Person in any Loan Document shall be true and
correct in all respects on and as of the date of such Loan as if such representations and warranties had been made as of the date of such Loan,
except to the extent that such representation or warranty was made as of a specific date or updated, modified or supplemented as of a
subsequent date with the consent of Required Lenders and Administrative Agent, in which cases such representations and warranties shall
have been true and correct in all respects on and of such earlier date.
26 CREDIT AGREEMENT
(p) No Default. No Default shall exist at the date of such Loan.
(q) No Material Adverse Effect. No Material Adverse Effect shall have occurred to, and no event or circumstance shall have occurred
that could reasonably be expected to cause a Material Adverse Effect to, Borrower’s consolidated financial condition or businesses since the
date of the Initial Financial Statements.
(r) Compliance. Each Restricted Person shall have performed and complied with all agreements and conditions required in the Loan
Documents to be performed or complied with by it on or prior to the date of such Loan.
(s) No Prohibition. The making of such Loan shall not be prohibited by any Law and shall not subject any Lender to any penalty or other
onerous condition under or pursuant to any such Law.
ARTICLE V - Representations and Warranties
To confirm each Lender’s understanding concerning Restricted Persons and Restricted Persons’ businesses, properties and obligations
and to induce Administrative Agent and each Lender to enter into this Agreement and to extend credit hereunder, each Restricted Person
represents and warrants to Administrative Agent and each Lender that:
Section 5.1. Due Authorization. The execution and delivery by it of this Agreement and the borrowings by Borrower hereunder, the
execution and delivery by Borrower of the Notes, the repayment by Borrower of the Notes and interest and fees provided for in the Notes and
this Agreement, the execution and delivery of the Security Documents to which it is a party and the performance by it of its obligations under
the Loan Documents to which it is a party are within the power of Borrower or such Person as the case may be, have been duly authorized by
all necessary action by Borrower or such Person, as the case may be, and do not and will not (a) require the consent of any Governmental
Authority, (b) contravene or conflict with any Requirement of Law, (c) contravene or conflict with any indenture, instrument or other
agreement to which it is a party or by which any of its Property may be presently bound or encumbered or (d) result in or require the creation
or imposition of any Lien in, upon or on any of its Property under any such indenture, instrument, or other agreement, other than under any of
the Loan Documents.
Section 5.2. Existence. Each Restricted Person is a corporation, a limited partnership, a limited liability company or other entity, as the
case may be, duly organized, legally existing and, if applicable, in good standing under the laws of the state of its organization or formation
and is duly qualified as a foreign limited partnership or limited liability company and, if applicable, in good standing in all jurisdictions wherein
the ownership of its Property or the operation of its business necessitates same, other than those jurisdictions wherein the failure to so qualify
would not have a Material Adverse Effect. Each Restricted Person has taken all actions and procedures customarily taken in order to enter, for
the purpose of conducting
27 CREDIT AGREEMENT
business or owning property, each jurisdiction outside the United States wherein the character of the properties owned or held by it or the
nature of the business transacted by it makes such actions and procedures desirable.
Section 5.3. Valid and Binding Obligations. Each Loan Document to which it is a party, when duly executed and delivered by it,
constitutes its legal, valid and binding obligation enforceable against it in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless
of whether considered in a proceeding in equity or at law.
Section 5.4. Security Documents. The provisions of each Security Document executed by it are effective to create, in favor of Collateral
Agent, a legal, valid and enforceable Lien in all of its right, title and interest in the Collateral described therein, which Lien, assuming the
accomplishment of recording and filing in accordance with applicable laws prior to the intervention of rights of other Persons, constitutes a
fully perfected first-priority Lien (except as to Permitted Liens) on all of its right, title and interest in the Collateral described therein.
Section 5.5. Title to Oil and Gas Properties. Except as set forth in Section 5.5 of the Disclosure Schedule, it has good and defensible title
to all of the Collateral, free and clear of all Liens except Permitted Liens. Except as set forth in Section 5.5 of the Disclosure Schedule, no other
Person has any ownership interest, whether legal or beneficial, in its interest in any of the Collateral which could reasonably be expected to
have a Material Adverse Effect.
Section 5.6. Scope and Accuracy of Financial Statements. The Initial Financial Statements present fairly the financial position and results
of operations and cash flows of Parent and its consolidated Subsidiaries in accordance with GAAP as at the relevant point in time or for the
period indicated, as applicable. No event or circumstance has occurred since September 30, 2008, which could reasonably be expected to have
a Material Adverse Effect.
Section 5.7. No Material Misstatements. No information, exhibit, statement or report furnished to Administrative Agent or any Lender by
it or at its direction in connection with this Agreement or any other Loan Document contains any material misstatement of fact or omits to state
a material fact or any fact necessary to make the statements contained therein not misleading as of the date made or deemed made; provided
that, with respect to projected financial information, it represents only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time. There is no fact known to any Restricted Person (other than (i) industry-wide risks normally
associated with the types of businesses conducted by Restricted Persons or (ii) matters disclosed in the Parent’s public securities filings) that
has not been disclosed to each Lender Party in writing which could cause a Material Adverse Effect.
Section 5.8. Liabilities and Litigation. Other than as reflected in the Initial Financial Statements or listed on Section 5.8 of the Disclosure
Schedule under the heading “Liabilities”, neither Borrower nor any of Guarantors has any liabilities, direct or contingent, which may materially
and adversely affect its business or operations or its ownership of the Collateral. Except as set forth under the heading “Litigation” on
Section 5.8 of the Disclosure Schedule, no litigation or other action of any nature affecting Borrower or any of Guarantors is pending before
28 CREDIT AGREEMENT
any Governmental Authority or, to the best of its knowledge, threatened against or affecting it or any of its Subsidiaries which might
reasonably be expected to result in any impairment of its ownership of any Collateral or have a Material Adverse Effect.
Section 5.9. Authorizations; Consents. Except as expressly contemplated by this Agreement, no authorization, consent, approval,
exemption, franchise, permit or license of, or filing with, any Governmental Authority or any other Person is required to authorize, or is
otherwise required in connection with, the valid execution and delivery by it of the Loan Documents to which it is a party or any instrument
contemplated hereby, the repayment by Borrower of the Notes and interest and fees provided in the Notes and this Agreement, or the
performance by Borrower of the Obligations.
Section 5.10. Compliance with Laws. It and its Properties, including any Mortgaged Properties and Oil and Gas Properties owned by it,
are in compliance in all material respects with all applicable Requirements of Law, including Environmental Laws, except in each case as could
not reasonably be expected to have a Material Adverse Effect.
Section 5.11. ERISA. It does not maintain, nor has it maintained, any ERISA Plan. It does not currently contribute to or have any
obligation to contribute to or otherwise have any liability with respect to any ERISA Plan and ERISA.
Section 5.12. Environmental Laws. Except as would not have a Material Adverse Effect or as described on Section 5.12 of the Disclosure
Schedule:
(a) no Property owned by it, or, to its knowledge, Property of others adjacent to Property owned by it, is currently on or has ever been on
any federal or state list of Superfund Sites;
(b) no Hazardous Substances have been generated, transported, and/or disposed of by it at a site which was, at the time of such
generation, transportation, and/or disposal, or has since become, a Superfund Site;
(c) except in accordance with applicable Requirements of Law or the terms of a valid permit, license, certificate, or approval of the relevant
Governmental Authority, no Release of Hazardous Substances by it or from, affecting or related to any Property owned by it has occurred; and
(d) no Environmental Complaint has been received by it.
Section 5.13. Compliance with Federal Reserve Regulations. It has not taken any action that would result in any transaction contemplated
by the Loan Documents, being in violation of any regulations promulgated by the Board of Governors of the Federal Reserve System,
including Regulations T, U or X.
Section 5.14. Government Regulation. It is not an “investment company” or subject to regulation as an “investment company” within the
meaning of the Investment Company Act of 1940. It is not subject to regulation under the Federal Power Act, as amended, or any other Law
which regulates the incurring by such Person of Indebtedness, including Laws relating to common contract carriers or the sale of electricity,
gas, steam, water or other public utility services.
29 CREDIT AGREEMENT
Section 5.15. Proper Filing of Tax Returns; Payment of Taxes Due. It has duly and properly filed its United States income tax returns and
all other tax returns which are required to be filed and has paid all taxes shown as due from it thereon, except such as are being contested in
good faith and as to which adequate provisions and disclosures have been made or as could not reasonably be expected to have a Material
Adverse Effect. The respective charges and reserves on its books with respect to taxes and other governmental charges are adequate, except
as could not reasonably be expected to have a Material Adverse Effect.
Section 5.16. Refunds. Except as described on Section 5.16 of the Disclosure Schedule, no orders of, proceedings pending before, or
other requirements of, the Federal Energy Regulatory Commission, the Texas Railroad Commission, or any other Governmental Authority exist
which could result in it being required to refund any portion of the proceeds received or to be received from the sale of hydrocarbons
constituting part of the Mortgaged Property or other Oil and Gas Properties owned by it, except as could not reasonably be expected to have a
Material Adverse Effect.
Section 5.17. Gas Contracts. Except as described on Section 5.17 of the Disclosure Schedule, (a) it is not obligated in any material respect
by virtue of any prepayment made under any contract containing a “take-or-pay” or “prepayment” provision or under any similar agreement to
deliver hydrocarbons produced from or allocated to any of the Mortgaged Property or other Oil and Gas Properties owned by it at some future
date without receiving full payment therefor within 90 days of delivery, and (b) it has not produced gas, in any material amount, subject to, and
neither it nor any of the Mortgaged Properties or other Oil and Gas Properties owned by it is subject to, balancing rights of third parties or
subject to balancing duties under Requirements of Law, except as to such matters for which it has established monetary reserves adequate in
amount to satisfy such obligations and has segregated such reserves from other accounts or as could not reasonably be expected to have a
Material Adverse Effect.
Section 5.18. Intellectual Property. Except as could not reasonably be expected to have a Material Adverse Effect, it owns or is licensed
to use all Intellectual Property necessary to conduct its business as currently conducted. Except as could not reasonably be expected to have
a Material Adverse Effect, no claim has been asserted or is pending by any Person with respect to the use of any such Intellectual Property or
challenging or questioning the validity or effectiveness of any such Intellectual Property; and it knows of no valid basis for any such claim.
Except as could not reasonably be expected to have a Material Adverse Effect, the use of such Intellectual Property by it does not infringe on
the rights of any Person, except for such claims and infringements as do not, in the aggregate, give rise to any material liability on its part.
Section 5.19. Casualties Taking of Property. Except as disclosed on Section 5.19 of the Disclosure Schedule, since the later of
(a) September 30, 2008, or (b) the date of the most recent financial statements furnished to Administrative Agent pursuant to Section 6.2,
neither its business nor any of its Property has been affected as a result of any fire, explosion, earthquake, flood, drought, windstorm,
accident, strike or other labor disturbance, embargo, requisition or taking of Property, or cancellation of contracts, permits or concessions by
any Governmental Authority, riot, activities of armed forces or acts of God, except as could not reasonably be expected to have a Material
Adverse Effect.
30 CREDIT AGREEMENT
Section 5.20. Principal Location; Organization. Its principal place of business and chief executive office is located at its address set forth
in Section 10.3 or at such other location as it may have, by proper written notice hereunder, advised Administrative Agent. Except as disclosed
in Section 5.20 of the Disclosure Schedule, has not been organized in a jurisdiction other than its jurisdiction of organization as of the date
hereof.
Section 5.21. Subsidiaries. Except as set forth on Section 5.21 of the Disclosure Schedule, no Restricted Person has any Subsidiaries.
Section 5.22. Compliance with Anti-Terrorism Laws. Neither any Restricted Person nor any Affiliate of any Restricted Person is in
violation of any Anti-Terrorism Law or knowingly engages in or conspires to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law.
(a) Neither any Restricted Person nor any Affiliate of any Restricted Person is any of the following (each a “Blocked Person”):
(i) a Person that is listed in the annex, to, or is otherwise subject to the provisions of, Executive Order No. 13224;
(ii) a Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to
the provisions of, Executive Order No. 13224;
(iii) a Person or entity with which any bank or other financial institution is prohibited from dealing or otherwise engaging in any
transaction by any Anti-Terrorism Law;
(iv) a Person or entity that commits, threatens or conspires to commit or supports “terrorism” as defined in Executive Order
No. 13224;
(v) a Person or entity that is named as a “specially designated national” on the most current list published by OFAC at its official
website or any replacement website or other replacement official publication of such list; or
(vi) a Person or entity who is affiliated with a Person or entity listed above.
(b) No Restricted Person (i) conducts any business or engages in making or receiving any contribution of funds, goods or services to or
for the benefit of any Blocked Person or (ii) deals in, or otherwise engages in any transaction relating to, any property or interests in property
blocked pursuant to Executive Order No. 13224.
(c) Neither any Restricted Person nor any Affiliate of any Restricted Person is in violation of any rules or regulations promulgated by
OFAC or of any economic or trade
31 CREDIT AGREEMENT
sanctions administered and enforced by OFAC or conspires to engage in any transaction that evades or avoids, or has the purpose of evading
or avoiding, or attempts to violate, any of the prohibitions set forth in any rules or regulations promulgated by OFAC.
Section 5.23. Identification Numbers. The federal taxpayer identification number and the organizational number with the Secretary of
State of the state of its organization or formation are as set out on Section 5.23 of the Disclosure Schedule.
Section 5.24. Solvency. Immediately after the Closing and immediately following the making of each Loan made on the Closing Date and
following the making of any Loan made after the Closing Date, after giving effect to the application of the proceeds of each such Loan, (a) the
fair value of the assets of each of Borrower and Guarantors, at a fair valuation, will exceed its debts and liabilities, subordinated, contingent or
otherwise, at a fair valuation; (b) the present fair saleable value of the property of each of Borrower and Guarantors will be greater than the
amount that will be required to pay the probable liability of its debts and other liabilities, subordinated, contingent or otherwise, as such debts
and other liabilities become absolute and matured; (c) each of Borrower and Guarantors will be able to pay its debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (d) neither Borrower nor any of
Guarantors will have unreasonably small capital with which to conduct the business in which it is engaged as such businesses are now
conducted and are proposed to be conducted following the Closing Date.
Section 5.25. No Default. No Restricted Person is in default in the performance of any of its covenants and agreements contained in any
Loan Document. No Default has occurred and is continuing.
Section 5.26. Ad Valorem and Severance Taxes. Each Restricted Person has paid and discharged all ad valorem taxes that are payable and
have been assessed against its Oil and Gas Property or any part thereof and all production, severance and other taxes that are payable and
have been assessed against, or measured by, the production or the value, or proceeds, of the production therefrom, except ad valorem and
severance taxes that are being contested in good faith by appropriate proceedings and for which adequate reserves have been set aside in
accordance with GAAP.
Section 5.27. Environmental and Other Laws. Except as disclosed in Section 5.12 of the Disclosure Schedule: (a) Restricted Persons are
conducting their businesses in material compliance with all applicable Laws, including Environmental Laws, and have and are in material
compliance with all licenses and permits required under any such Laws; (b) none of the operations or properties of any Restricted Person is
the subject of federal, state or local investigation evaluating whether any material remedial action is needed to respond to a release of any
Hazardous Substances into the environment or to the improper storage or disposal (including storage or disposal at offsite locations) of any
Hazardous Substances; (c) no Restricted Person (and to the best knowledge of Borrower, no other Person) has filed any notice under any Law
indicating that any Restricted Person is responsible for the improper release into the environment, or the improper storage or disposal, of any
material amount of any Hazardous Substances or that any Hazardous Substances have been improperly released, or are improperly stored or
disposed of, upon any property of any Restricted Person; (d) no Restricted Person has
32 CREDIT AGREEMENT
transported or arranged for the transportation of any Hazardous Substance to any location which is (i) listed on the National Priorities List
under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, listed for possible inclusion on such
National Priorities List by the Environmental Protection Agency in its Comprehensive Environmental Response, Compensation and Liability
Information System List, or listed on any similar state list or (ii) the subject of federal, state or local enforcement actions or other investigations
which may lead to claims against any Restricted Person for clean-up costs, remedial work, damages to natural resources or for personal injury
claims (whether under Environmental Laws or otherwise); and (e) no Restricted Person otherwise has any known material contingent liability
under any Environmental Laws or in connection with the release into the environment, or the storage or disposal, of any Hazardous
Substances. Each Restricted Person undertook, at the time of its acquisition of each of its material properties, all appropriate inquiry into the
previous ownership and uses of the Property and any potential environmental liabilities associated therewith.
Section 5.28. Leases and Contracts; Performance of Obligations. Except as disclosed in Section 5.28 of the Disclosure Schedule, (a) the
leases, contracts, servitudes and other agreements forming a part of the Oil and Gas Properties of the Restricted Persons are in full force and
effect in all material respects, (b) all material rents, royalties and other payments due and payable by any Restricted Person or, to Borrower’s
knowledge, any other Person under such leases, contracts, servitudes and other agreements, or under any Permitted Liens, or otherwise
attendant to the ownership or operation of any Oil and Gas Properties, have been properly and timely paid, and (c) no Restricted Person is in
default with respect to its obligations (and no Restricted Person has knowledge of any default by any third party with respect to such third
party’s obligations) under any such leases, contracts, servitudes and other agreements, or under any Permitted Liens, or otherwise attendant
to the ownership or operation of any part of the Oil and Gas Properties, where such default could adversely affect the ownership or operation
of such Oil and Gas Properties. No Restricted Person is currently accounting for any royalties, or overriding royalties or other payments out of
production, on a basis (other than delivery in kind) less favorable to such Restricted Person than proceeds received by such Restricted Person
(calculated at the well) from sale of production, and no Restricted Person has any liability (or alleged liability) to account for the same on any
such less favorable basis. As used in this Section, “Oil and Gas Properties” means Oil and Gas Properties to which Proved Reserves of the
Restricted Persons in Texas are properly attributed.
Section 5.29. Sale of Production. Except as set forth in the Disclosure Schedule, no Oil and Gas Property is subject to any contractual or
other arrangement (i) which permits payment for production to be deferred for a substantial period after the month in which such production is
delivered (in the case of oil, not in excess of 60 days, and in the case of gas, not in excess of 90 days) or (ii) whereby payments are made to a
Restricted Person other than by checks, drafts, wire transfer advises or other similar writings, instruments or communications for the immediate
payment of money. Except for production sales contracts, processing agreements, transportation agreements and other agreements relating to
the marketing of production that are listed on the Disclosure Schedule in connection with the Oil and Gas Properties to which such contract or
agreement relates: (i) no Oil and Gas Property is subject to any contractual or other arrangement for the sale, processing or transportation of
production (or otherwise related to the marketing of production) which cannot be canceled on 120 days’ (or less) notice without a customary
33 CREDIT AGREEMENT
breakage fee and (ii) all contractual or other arrangements for the sale, processing or transportation of production (or otherwise related to the
marketing of production) from any Oil and Gas Property to which any Restricted Person is a party or, to Borrower’s knowledge otherwise, are
bona fide arm’s length transactions made on the best terms available with third parties not affiliated with Restricted Persons. Each Restricted
Person is presently receiving a price for all production from (or attributable to) each Oil and Gas Property that is subject to a production sales
contract or marketing contract listed on the Disclosure Schedule that is computed in accordance with the terms of such contract, and no
Restricted Person is having deliveries of production from such Oil and Gas Property curtailed substantially below such property’s delivery
capacity. Except as set forth in the Disclosure Schedule, no Restricted Person, nor any Restricted Person’s predecessors in title, has received
prepayments (including payments for gas not taken pursuant to “take or pay” or other similar arrangements) for any oil, gas or other
hydrocarbons produced or to be produced from any Oil and Gas Properties after the date hereof. Except as in Section 5.29 of the Disclosure
Schedule, there is no Oil and Gas Property with respect to which any Restricted Person, or any Restricted Person’s predecessors in title, has,
prior to the date hereof, taken more (“overproduced”), or less (“underproduced”), gas from the lands covered thereby (or pooled or unitized
therewith) than its ownership interest in such Oil and Gas Property would entitle it to take; and Section 5.29 of the Disclosure Schedule
accurately reflects, for each well or unit with respect to which such an imbalance is shown thereon to exist, (i) whether such Restricted Person
is overproduced or underproduced and (ii) the volumes (in cubic feet or British thermal units) of such overproduction or underproduction and
the effective date of such information. Except as set forth in the Disclosure Schedule, no Oil and Gas Property is subject to a gas balancing
arrangement under which one or more third parties may take a portion of the production attributable to such Oil and Gas Property without
payment (or without full payment) therefor as a result of production having been taken from, or as a result of other actions or inactions with
respect to, other properties. No Oil and Gas Property is subject at the present time to any regulatory refund obligation and, to the best of
Restricted Person’s knowledge, no facts exist which might cause the same to be imposed. As used in this Section, “Oil and Gas Properties”
means Oil and Gas Properties to which Proved Reserves of the Restricted Persons in Texas are properly attributed.
Section 5.30. Operation of Oil and Gas Properties. The Oil and Gas Properties (and all Properties unitized therewith) are being (and, to the
extent the same could adversely affect the ownership or operation of the Oil and Gas Properties after the date hereof, have in the past been)
maintained, operated and developed in all material respects in a good and workmanlike manner, in accordance with prudent industry standards
and in material conformity with all applicable Laws and in material conformity with all oil, gas or other mineral leases and other contracts and
agreements forming a part of the Oil and Gas Property and in conformity with the Permitted Liens. Each Restricted Person has all governmental
licenses and permits necessary or appropriate to own and operate its Oil and Gas Properties, and no Restricted Person has received notice of
any violations in respect of any such licenses or permits. As used in this Section, “Oil and Gas Properties” means Oil and Gas Properties to
which Proved Reserves of the Restricted Persons in Texas are properly attributed.
34 CREDIT AGREEMENT
ARTICLE VI - Affirmative Covenants
To conform with the terms and conditions under which each Lender is willing to have credit outstanding to Borrower, and to induce each
Lender to enter into this Agreement and extend credit hereunder, each of Parent and Borrower warrants, covenants and agrees that until the
full and final payment of the Obligations and the termination of this Agreement (as determined without regard to unasserted indemnity claims)
each Restricted Person shall:
Section 6.1. Maintenance and Access to Records. Keep adequate records, in accordance with GAAP, of all its transactions so that at any
time, and from time to time, its true and complete financial condition may be readily determined.
Section 6.2. Public Reporting. Deliver to Administrative Agent and, upon request, any Lender, within ten (10) days after their becoming
available, copies of (i) all financial statements, reports, notices and proxy statements sent by Parent to all of its equity holders, and (ii) all
registration statements, periodic reports, current reports, and other statements and schedules filed by any Restricted Person with any
securities exchange (including the Toronto Stock Exchange and the American Stock Exchange), the SEC or any similar Governmental
Authority.
Section 6.3. Compliance Certificate. Deliver to Administrative Agent and, upon request, any Lender, contemporaneously with the
delivery of the financial statements pursuant to Section 6.2 (both annual and quarterly financial statements) with the SEC or any similar
Governmental Authority, a Compliance Certificate prepared, as to Section 2 thereof, as of the close of the relevant fiscal year or quarter.
Section 6.4. Notice of Event of Default. Deliver to Administrative Agent, immediately after the occurrence of any Event of Default, a
written statement with respect thereto, signed by a Responsible Officer of the relevant Restricted Person or its general partner and setting
forth the relevant event or circumstance and the steps being taken by the relevant Restricted Person with respect to such event or
circumstance.
Section 6.5. Other Reports; Information; and Inspections.

(a) Upon the request of Administrative Agent or any Lender, promptly deliver to Administrative Agent and any such Lender, promptly
after the furnishing thereof, copies of any statement, report, notice, or other information furnished to any Person pursuant to the Amegy Credit
Agreement.
(b) Upon the request of Administrative Agent or any Lender, promptly deliver to Administrative Agent and any such Lender, promptly
after the furnishing thereof, copies of any demands or material notices in connection with the Amegy Indebtedness either received by a
Restricted Person or on its behalf.
(c) Upon the request of Administrative Agent or any Lender, promptly deliver to such Person, such additional financial or other
information concerning the businesses, prospects, financial condition, assets, liabilities, operations and transactions of the Restricted Persons
as such Person may from time to time reasonably request.
35 CREDIT AGREEMENT
(d) Upon the request of Administrative Agent and upon reasonable prior notice, permit representatives appointed by Administrative
Agent (including independent accountants, auditors, agents, attorneys, appraisers and any other Persons) to visit and inspect during normal
business hours any Restricted Person’s property, including its books of account, other books and records, and any facilities or other business
assets, and to make extra copies therefrom and photocopies and photographs thereof, and to write down and record any information such
representatives obtain, and each Restricted Person shall permit Administrative Agent or its representatives to investigate and verify the
accuracy of the information furnished to Administrative Agent or any Lender in connection with the Loan Documents and to discuss all such
matters with its officers, employees and representatives subject to the provisions of Section 10.6.
Any request for reports, notices or information made by any Lender Party pursuant to this Section 6.5 may be made either with respect to a
specific instance or as a recurring request.
Section 6.6. Title Opinions; Title Defects; Mortgaged Properties. Promptly upon the request of Administrative Agent, furnish to
Administrative Agent title opinions, in form and substance and by counsel reasonably satisfactory to Administrative Agent, or other
confirmation of title reasonably acceptable to Administrative Agent, covering Oil and Gas Properties of Borrower and its Subsidiaries the
discounted present value of the proved reserves attributable to which, in the aggregate, equals no less than eighty five percent (85%) of the
aggregate discounted present value of the proved reserves attributable to the combined Oil and Gas Properties of Borrower and other
Domestic Subsidiaries of Parent used in the most recent redetermination of the Amegy Borrowing Base; promptly, but in any event within 60
days after notice by Administrative Agent of any defect having a material effect on the value of any material Oil and Gas Property and
resulting in Borrower or the relevant Domestic Subsidiary not having defensible title to its interest in such Oil and Gas Property, clear such title
defects; and promptly upon request of Administrative Agent, execute and deliver to Collateral Agent additional Security Documents as
necessary to maintain, as Mortgaged Properties subject to a perfected first priority Lien in favor of the Collateral Agent (subject only to
Permitted Liens), Oil and Gas Properties of Borrower and other Domestic Subsidiaries of Parent constituting at least eighty five percent
(85%) of the aggregate discounted present value of the proved reserves attributable to the combined Oil and Gas Properties of Borrower and
its Subsidiaries used in the most recent redetermination of the Amegy Borrowing Base.
Section 6.7. Letters in Lieu of Transfer Orders or Division Orders. Promptly upon request by Administrative Agent at any time and from
time to time, and without limitation on the rights of Administrative Agent pursuant to the provisions of Section 2.8 and Section 2.9 execute
such letters in lieu of transfer or division orders as are necessary or appropriate to transfer and deliver to Collateral Agent proceeds from or
attributable to any Mortgaged Property.
Section 6.8. Commodity Hedging. Except as could not reasonably be expected to have a Material Adverse Effect, comply in all material
respects with any Commodity Hedge Agreements entered into by any Restricted Person.
Section 6.9. Additional Guaranties and Security Documents. Execute and deliver to Collateral Agent Security Documents covering all of
its personal property, including all of its
36 CREDIT AGREEMENT
equity ownership in each Domestic Subsidiary of Parent or sixty-five percent of the equity ownership in any Subsidiary of Parent which is not
a Domestic Subsidiary of Parent and take all other action requested by Administrative Agent, Collateral Agent, or any Lender to perfect the
Lien of all such Security Documents and cause each Domestic Subsidiary of Parent to execute and deliver a Guaranty in favor of
Administrative Agent, for the benefit of Administrative Agent and Lenders, and Security Documents, as requested by Administrative Agent,
in favor or for the benefit of Collateral Agent, for the benefit of the Secured Creditors, covering assets of such Domestic Subsidiary and take
all such other action requested by Administrative Agent, Collateral Agent, or any Lender to perfect the Lien of such Security Documents.
Section 6.10. Lien Perfection. Notify Administrative Agent and Collateral Agent not less than ten Business Days prior to the occurrence
of any condition or event that may change the proper location for the filing of any financing statement or other public notice or recording for
the purpose of perfecting a Lien in any Collateral, including any change in its name or jurisdiction of organization; and upon the request of
Administrative Agent or Collateral Agent, execute such additional Security Documents as may be necessary or appropriate in connection
therewith.
Section 6.11. Compliance with Laws and Agreements. Comply with all applicable Requirements of Law, including (a) ERISA,
(b) Environmental Laws and (c) all permits, licenses, registrations, approvals, and authorizations (i) related to any natural or environmental
resource or media located on, above, within, related to or affected by any of its Property, (ii) required for the performance of its operations, or
(iii) applicable to the use, generation, handling, storage, treatment, transport or disposal of any Hazardous Substances, except for any
noncompliance which could not reasonably be expected to have a Material Adverse Effect; use commercially reasonable efforts to cause all of
its employees, crew members, agents, contractors, subcontractors and future lessees (pursuant to appropriate lease provisions), while such
Persons are acting within the scope of their relationship with it, to comply with all such Requirements of Law as may be necessary or
appropriate to enable it to so comply; and perform all material obligations it is required to perform under the terms of each material indenture,
mortgage, deed of trust, security agreement, lease, franchise, agreement, contract or other instrument or obligation to which it is a party or by
which it or any of its properties is bound.
Section 6.12. Payment of Taxes, Assessments and Charges. (a) Timely file all required tax returns including any extensions; (b) timely pay
all taxes, assessments, and other governmental charges or levies of $100,000 or more imposed upon it or upon its income, profits or property
before the same become delinquent; and (c) maintain appropriate accruals and reserves for all of the foregoing in accordance with GAAP. Each
Restricted Person may, however, delay paying or discharging any of the foregoing so long as it is in good faith contesting the validity thereof
by appropriate proceedings, if necessary, and has set aside on its books adequate reserves therefore which are required by GAAP.
Section 6.13. Maintenance of Existence or Qualification and Good Standing. Maintain its separate corporate, limited partnership or limited
liability company existence and identity, as the case may be, and, if applicable, good standing in its jurisdiction of organization and in all
jurisdictions wherein the Property now owned or hereafter acquired or business now or hereafter conducted by it necessitates same.
37 CREDIT AGREEMENT
Section 6.14. Payment of Notes; Performance of Obligations. Pay the Notes according to the reading, tenor and effect thereof, as
modified hereby, do and perform every act and discharge all of the other Obligations of Borrower, and observe, perform, and comply with
every covenant, term, and condition set forth in the Loan Documents to which it is a party.
Section 6.15. Further Assurances. Promptly upon written request of Administrative Agent, cure any defects in the execution and delivery
of any of the Loan Documents to which it is a party and all agreements contemplated thereby, and execute, acknowledge and deliver to
Administrative Agent or any Lender such other assurances and instruments as shall, in the reasonable opinion of Administrative Agent or
any Lender, be necessary to fulfill the terms of the Loan Documents to which it is a party.
Section 6.16. Initial Expenses of Administrative Agent. Upon request by Administrative Agent, promptly reimburse Administrative
Agent for, or pay directly to such special counsel, all reasonable fees and expenses of Thompson & Knight L.L.P., special counsel to
Administrative Agent, in connection with the preparation of this Agreement and all documentation contemplated hereby, the satisfaction of
the conditions precedent set forth herein, the filing and recordation of Security Documents and the consummation of the transactions
contemplated in this Agreement.
Section 6.17. Operation of Oil and Gas Properties. Develop, maintain and operate or, to the extent that the right or obligation to do so
rests with another Person, exercise commercially reasonable efforts to cause such other Person to develop, maintain and operate its Oil and
Gas Properties in a manner reasonably determined by it to be prudent and workmanlike and in accordance with customary industry standards.
Section 6.18. Maintenance of Properties. Maintain or, to the extent that the right or obligation to do so rests with another Person, exercise
commercially reasonable efforts to cause such other Person to maintain all of its material tangible Properties in good repair and condition,
ordinary wear and tear excepted, in material compliance with all applicable Laws, and in material conformity with all material applicable
contracts, servitudes, leases and agreements; and make or, to the extent that the right or obligation to do so rests with another Person, exercise
commercially reasonable efforts to cause such other Person to make all necessary replacements thereof and operate such Properties in a
manner reasonably determined by it to be good and workmanlike.
Section 6.19. Maintenance of Insurance. Maintain insurance with respect to its Properties and businesses against such liabilities,
casualties, risks, and contingencies as is customary in the relevant industry and sufficient to prevent a Material Adverse Effect, all such
insurance to be in amounts and from insurers reasonably acceptable to Administrative Agent, name Administrative Agent and Lenders as an
additional insured (in the case of liability insurance) and Collateral Agent as co-loss payee (in the case of physical damage insurance), and,
upon any renewal of any such insurance and at other times upon request by Administrative Agent, furnish to Administrative Agent evidence,
reasonably satisfactory to Administrative Agent, of the maintenance of such insurance. Collateral Agent shall have the right to collect, and
each of Borrower and the Guarantors hereby assigns to Collateral Agent, any and all monies that may become payable under any policies of
insurance relating to business interruption or by
38 CREDIT AGREEMENT
reason of damage, loss or destruction of any of the Collateral. In the event of any damage, loss or destruction for which insurance proceeds
relating to business interruption or Collateral exceed $1,000,000, Administrative Agent may, at its option, apply all such sums or any part
thereof received by it toward the payment of the Obligations, whether matured or unmatured, application to be made first to interest and then
to principal, and shall deliver to Borrower or the relevant Guarantor, as the case may be, the balance, if any, after such application has been
made. In the event of any such damage, loss or destruction for which insurance proceeds are $1,000,000 or less, provided that no Default or
Event of Default has occurred and is continuing, Administrative Agent shall deliver any such proceeds received by it to Borrower or the
relevant Guarantor, as the case may be, for use to repair or replace the damaged, destroyed or lost property. In the event Administrative Agent
receives insurance proceeds not attributable to Collateral or business interruption, Administrative Agent shall deliver any such proceeds to
Borrower or the relevant Guarantor, as the case may be.
Section 6.20. ENVIRONMENTAL INDEMNIFICATION. INDEMNIFY AND HOLD ADMINISTRATIVE AGENT AND EACH OF THE
LENDERS AND THEIR RESPECTIVE SHAREHOLDERS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ATTORNEYS-IN-FACT
AND AFFILIATES AND EACH TRUSTEE FOR THE BENEFIT OF ADMINISTRATIVE AGENT OR THE LENDERS UNDER ANY
SECURITY DOCUMENT (EACH OF THE FOREGOING AN “INDEMNITEE”) HARMLESS FROM AND AGAINST ANY AND ALL
CLAIMS, LOSSES, DAMAGES, LIABILITIES, FINES, PENALTIES, CHARGES, ADMINISTRATIVE AND JUDICIAL PROCEEDINGS
AND ORDERS, JUDGMENTS, REMEDIAL ACTIONS, REQUIREMENTS AND ENFORCEMENT ACTIONS OF ANY KIND, AND ALL
REASONABLE COSTS AND EXPENSES INCURRED IN CONNECTION THEREWITH (INCLUDING ATTORNEYS’ FEES AND
EXPENSES), ARISING DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, FROM (A) THE PRESENCE OF ANY HAZARDOUS
SUBSTANCES ON, UNDER, OR FROM ANY OF ITS PROPERTY, WHETHER PRIOR TO OR DURING THE TERM HEREOF, (B) ANY
ACTIVITY CARRIED ON OR UNDERTAKEN ON ANY OF ITS PROPERTY, WHETHER PRIOR TO OR DURING THE TERM HEREOF,
AND WHETHER BY IT OR ANY OF ITS PREDECESSORS IN TITLE, EMPLOYEES, AGENTS, CONTRACTORS OR
SUBCONTRACTORS OR ANY OTHER PERSON AT ANY TIME OCCUPYING OR PRESENT ON SUCH PROPERTY, IN CONNECTION
WITH THE HANDLING, TREATMENT, REMOVAL, STORAGE, DECONTAMINATION, CLEANUP, TRANSPORTATION, OR DISPOSAL
OF ANY HAZARDOUS SUBSTANCES AT ANY TIME LOCATED OR PRESENT ON OR UNDER SUCH PROPERTY, (C) ANY RESIDUAL
CONTAMINATION ON OR UNDER ANY OF ITS PROPERTY, (D) ANY CONTAMINATION OF ANY PROPERTY OR NATURAL
RESOURCES ARISING IN CONNECTION WITH THE GENERATION, USE, HANDLING, STORAGE, TRANSPORTATION OR
DISPOSAL OF ANY HAZARDOUS SUBSTANCES BY IT OR ANY OF ITS EMPLOYEES, AGENTS, CONTRACTORS, OR
SUBCONTRACTORS WHILE SUCH PERSONS ARE ACTING WITHIN THE SCOPE OF THEIR RELATIONSHIP WITH IT,
IRRESPECTIVE OF WHETHER ANY OF SUCH ACTIVITIES WERE OR WILL BE UNDERTAKEN IN ACCORDANCE WITH
APPLICABLE REQUIREMENTS OF LAW, OR (E) THE PERFORMANCE AND ENFORCEMENT OF ANY LOAN DOCUMENT OR ANY
OTHER ACT OR OMISSION IN CONNECTION WITH OR RELATED TO ANY LOAN DOCUMENT OR THE
39 CREDIT AGREEMENT
TRANSACTIONS CONTEMPLATED THEREBY, INCLUDING ANY SUCH CLAIM, LOSS, DAMAGE, LIABILITY, FINE, PENALTY,
CHARGE, ADMINISTRATIVE OR JUDICIAL PROCEEDING, ORDER, JUDGMENT, REMEDIAL ACTION, REQUIREMENT,
ENFORCEMENT ACTION, COST OR EXPENSE, ARISING FROM THE NEGLIGENCE (BUT NOT THE GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT), WHETHER SOLE OR CONCURRENT, OF ANY INDEMNITEE; WITH THE FOREGOING INDEMNITY
SURVIVING SATISFACTION OF ALL OBLIGATIONS AND THE TERMINATION OF THIS AGREEMENT, UNLESS ALL SUCH
OBLIGATIONS HAVE BEEN SATISFIED WHOLLY IN CASH AND NOT BY WAY OF REALIZATION AGAINST ANY COLLATERAL
OR THE CONVEYANCE OF ANY PROPERTY IN LIEU THEREOF, PROVIDED THAT SUCH INDEMNITY SHALL NOT EXTEND TO ANY
ACT OR OMISSION BY ADMINISTRATIVE AGENT OR ANY LENDER WITH RESPECT TO ANY PROPERTY SUBSEQUENT TO
ADMINISTRATIVE AGENT OR ANY LENDER BECOMING THE OWNER OF SUCH PROPERTY AND WITH RESPECT TO WHICH
PROPERTY SUCH CLAIM, LOSS, DAMAGE, LIABILITY, FINE, PENALTY, CHARGE, PROCEEDING, ORDER, JUDGMENT, ACTION OR
REQUIREMENT ARISES SUBSEQUENT TO THE ACQUISITION OF TITLE THERETO BY ADMINISTRATIVE AGENT OR ANY LENDER.
ALL AMOUNTS DUE UNDER THIS SECTION 6.20 SHALL BE PAYABLE ON WRITTEN DEMAND THEREFOR.
Section 6.21. GENERAL INDEMNIFICATION. INDEMNIFY AND HOLD EACH INDEMNITEE HARMLESS FROM AND AGAINST
ANY AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES AND RELATED EXPENSES, INCLUDING REASONABLE COUNSEL FEES
AND EXPENSES (INCLUDING THE ALLOCATED COST OF INTERNAL COUNSEL), INCURRED BY OR ASSERTED AGAINST ANY
INDEMNITEE ARISING OUT OF, IN ANY WAY CONNECTED WITH, OR AS A RESULT OF (A) THE EXECUTION AND DELIVERY OF
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, THE PERFORMANCE BY THE PARTIES HERETO AND THERETO OF
THEIR RESPECTIVE OBLIGATIONS HEREUNDER AND THEREUNDER AND CONSUMMATION OF THE TRANSACTIONS
CONTEMPLATED HEREBY AND THEREBY, (B) THE USE OF PROCEEDS OF THE LOANS, OR (C) ANY CLAIM, LITIGATION,
INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER OR NOT ANY INDEMNITEE IS A PARTY
THERETO, INCLUDING ANY SUCH LOSS, CLAIM, DAMAGE, LIABILITY OR EXPENSE ARISING FROM THE NEGLIGENCE (BUT NOT
THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT), WHETHER SOLE OR CONCURRENT, OF ANY INDEMNITEE; WITH THE
FOREGOING INDEMNITY SURVIVING SATISFACTION OF ALL OBLIGATIONS AND THE TERMINATION OF THIS AGREEMENT.
ALL AMOUNTS DUE UNDER THIS SECTION 6.21 SHALL BE PAYABLE ON WRITTEN DEMAND THEREFOR.
Section 6.22. Evidence of Compliance with Anti-Terrorism Laws. Deliver to Administrative Agent and any Lender any certification or
other evidence requested from time to time by Administrative Agent or such Lender, in their reasonable discretion, confirming its compliance
with the provisions of Section 7.18.
40 CREDIT AGREEMENT
Section 6.23. Payment of Trade Liabilities. Each Restricted Person will (a) within ninety (90) days past the original invoice billing date
therefore, or, if earlier, when due in accordance with its terms, pay and discharge all Liabilities owed by it on ordinary trade terms to vendors,
suppliers and other Persons providing goods and services used by it in the ordinary course of its business; (b) pay and discharge before the
same becomes delinquent all other Liabilities now or hereafter owed by it, other than royalty payments suspended in the ordinary course of
business; and (c) maintain appropriate accruals and reserves for all of the foregoing in accordance with GAAP. Each Restricted Person may,
however, delay paying or discharging any of the foregoing so long as it is in good faith contesting the validity thereof by appropriate
proceedings, if necessary, and has set aside on its books adequate reserves therefore which are required by GAAP.
Section 6.24. Performance on Borrower’s Behalf. If any Restricted Person fails to pay any taxes, insurance premiums, expenses,
attorneys’ fees or other amounts it is required to pay under any Loan Document, Administrative Agent may pay the same. Borrower shall
immediately reimburse Administrative Agent for any such payments and each amount paid by Administrative Agent shall constitute an
Obligation owed hereunder which is due and payable on the date such amount is paid by Administrative Agent.
Section 6.25. Interest. In addition to its obligations to pay interest on the Loans (and any past due interest thereon) at the Default Rate as
and when provided in Section 2.4, Borrower hereby promises to each Lender Party to pay interest at the Default Rate on all other Obligations
that Borrower has in this Agreement promised to pay to such Lender Party and that are not paid when due. Such interest shall accrue from the
date such Obligations become due until they are paid.
Section 6.26. Environmental Matters; Environmental Reviews.

(a) Each Restricted Person will comply in all material respects with all Environmental Laws now or hereafter applicable to such Restricted
Person, as well as all contractual obligations and agreements with respect to environmental remediation or other environmental matters, and
shall obtain, at or prior to the time required by applicable Environmental Laws, all material environmental, health and safety permits, licenses
and other authorizations necessary for its operations and will maintain such authorizations in full force and effect. No Restricted Person will do
anything or permit anything to be done which will subject any of its properties to any material remedial obligations under, or result in
noncompliance with applicable permits and licenses issued under, any applicable Environmental Laws, assuming disclosure to the applicable
governmental authorities of all relevant facts, conditions and circumstances. Upon Administrative Agent’s reasonable request and expense, at
any time and from time to time, Borrower will provide a Phase I environmental assessment of any of the Restricted Persons’ material real
properties from an engineering or consulting firm selected by Administrative Agent.
(b) Upon Administrative Agent’s written request, Borrower will promptly furnish to Administrative Agent copies of all written notices of
violation, orders, claims, citations, complaints, penalty assessments, suits or other proceedings received by any Restricted Person, or of which
Borrower otherwise has notice, pending or threatened against any Restricted Person by
41 CREDIT AGREEMENT
any Governmental Authority with respect to any alleged material violation of or non-compliance with any Environmental Laws or any permits,
licenses or authorizations in connection with any Restricted Person’s ownership or use of its properties or the operation of its business.
(c) Upon Administrative Agent’s written request, Borrower will promptly furnish to Administrative Agent all reasonable requests for
information, notices of claim, demand letters, and other notifications, received by Borrower in connection with any Restricted Person’s
ownership or use of its properties or the conduct of its business, relating to potential responsibility with respect to any investigation or clean-
up of Hazardous Substance at any location.
Section 6.27. Evidence of Compliance. Each Restricted Person will furnish to each Lender at such Restricted Person’s or Borrower’s
expense all evidence which Administrative Agent from time to time reasonably requests in writing as to the accuracy and validity of or
compliance with all representations, warranties and covenants made by any Restricted Person in the Loan Documents, the satisfaction of all
conditions contained therein, and all other matters pertaining thereto.
Section 6.28. Leases and Contracts; Performance of Obligations. Each Restricted Person will, unless it is consistent with prudent industry
practices and economic considerations not to do so, maintain in full force and effect all material oil, gas or mineral leases, contracts, servitudes
and other agreements forming a part of any Oil and Gas Property, to the extent the same cover or otherwise relate to such Oil and Gas Property,
and each Restricted Person will timely perform all of its obligations thereunder. Each Restricted Person will properly and timely pay all rents,
royalties and other payments due and payable under any such leases, contracts, servitudes and other agreements, or under the Permitted
Liens, or otherwise attendant to its ownership or operation of any Oil and Gas Property, unless it is contesting in good faith the validity
thereof by appropriate proceedings and for which adequate reserves are maintained in accordance with GAAP. Upon Administrative Agent’s
written request, each Restricted Person will promptly notify Administrative Agent of any claim (or any conclusion by such Restricted Person)
that such Restricted Person is obligated to account for any royalties, or overriding royalties or other payments out of production, on a basis
(other than delivery in kind) less favorable to such Restricted Person than proceeds received by Restricted Person (calculated at the well) from
sale of production.
ARTICLE VII - Negative Covenants of Borrower
To conform with the terms and conditions under which each Lender is willing to have credit outstanding to Borrower, and to induce each
Lender to enter into this Agreement and make the Loans, each of Parent and Borrower warrants, covenants and agrees that until the full and
final payment of the Obligations and the termination of this Agreement (as determined without regard to unasserted indemnity claims), unless
Required Lenders have previously agreed otherwise, no Restricted Person shall:
Section 7.1. Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, whether by way of loan or otherwise; provided,
however, the foregoing restriction shall not apply to:
(a) the Obligations,
42 CREDIT AGREEMENT
(b) unsecured accounts payable, taxes and other assessments, in each case incurred in the ordinary course of business and which are
not unpaid in excess of 90 days beyond invoice date or are being contested in good faith and as to which such reserve as is required by
GAAP has been made,
(c) Indebtedness under Commodity Hedge Agreements, including reimbursement obligations under letters of credit securing or
supporting such Indebtedness, with any Secured Counterparty or, so long as each such Person is acceptable to Administrative Agent, other
counterparties, provided that (i) such agreements shall not be for a term in excess of three years and (ii) shall not be entered into with respect
to more than eighty five percent (85%), of the projected production of proved developed producing volumes of each commodity category, as
reflected in Borrower and Guarantors’ most recent reserve report; provided that, such agreements may cover up to one hundred percent
(100%) of the projected production of proved developed producing volumes of each commodity category so long as such agreements
covering in excess of eighty five percent (85%) of the projected production of proved developed producing volumes of each commodity
category are Floor Contracts,
(d) Indebtedness under Interest Rate Hedge Agreements with any Secured Counterparty or, so long as each such Person is acceptable
to Administrative Agent, other counterparties, provided that such agreements shall not be entered into with respect to notional principal
amounts in excess of one hundred percent (100%) of the outstanding principal balance of the loans under the Amegy Credit Agreement and
the Loans hereunder at such time,
(e) Indebtedness incurred with respect to all or a portion of the purchase price of Property acquired in the ordinary course of business
not exceeding $500,000 in the aggregate for Parent on a consolidated basis with its Subsidiaries,
(f) the Second Lien Indebtedness,
(g) the Indebtedness listed on Section 7.1 of the Disclosure Schedule,
(h) unsecured Indebtedness from time to time owing by any Subsidiary of Parent to Parent, Borrower or any other Subsidiary Guarantor,
(i) the Amegy Indebtedness arising under the Amegy Credit Agreement and the other loan documents related thereto (as in effect on the
date hereof or as amended in accordance with this Agreement), provided that the principal amount of the loans and letter of credit obligations
comprising such Amegy Indebtedness shall not exceed $30,000,000 at any time outstanding or such greater amount not to exceed $60,000,000
as shall be approved by Required Lenders in their discretion, and
43 CREDIT AGREEMENT
(j) other unsecured Indebtedness or Indebtedness secured by a Permitted Lien not exceeding, in the aggregate at any time, $100,000 for
Parent on a consolidated basis with its consolidated Subsidiaries.
Section 7.2. Contingent Obligations. Create, incur, assume, or suffer to exist any Contingent Obligation; provided, however, the
foregoing restriction shall not apply to (a) performance guarantees, performance surety or other bonds or endorsements of items deposited for
collection, in each case provided in the ordinary course of business, (b) trade credit incurred or operating leases entered into in the ordinary
course of business, (c) the Guaranties, (d) guaranties provided pursuant to the Second Lien Credit Agreement, or (e) guaranties provided
pursuant to the Amegy Credit Agreement.
Section 7.3. Liens. Create, incur, assume or suffer to exist any Lien on any of its Oil and Gas Properties or any other Property, whether
now owned or hereafter acquired; provided, however, the foregoing restriction shall not apply to Permitted Liens.
Section 7.4. Sales of Assets. Sell, transfer or otherwise dispose of, in one or any series of transactions, any of its Property, whether now
owned or hereafter acquired, or enter into any agreement to do so; provided, however, the foregoing restriction shall not apply to:
(a) the sale of hydrocarbons or inventory in the ordinary course of business, provided that no contract for the sale of hydrocarbons shall
obligate the relevant Person to deliver hydrocarbons produced from any of its Oil and Gas Properties at some future date without receiving full
payment therefor within 60 days of delivery,
(b) the sale or other disposition of Property destroyed, lost, worn out, damaged or having only salvage value or no longer used or useful
in the business in which it is used,
(c) the sale, transfer or other disposition of Property from Parent or Borrower to Borrower or the Domestic Subsidiaries of Parent or from
the Subsidiaries of Parent to Borrower, or
(d) so long as no Default or Event of Default exists or would be caused thereby, and provided that the proceeds thereof are used in
compliance with the Second Lien Credit Agreement, sales or other dispositions of Oil and Gas Properties or of Subsidiaries of Parent holding
Oil and Gas Properties between regular semi-annual redeterminations of the Amegy Borrowing Base as provided in the Amegy Credit
Agreement, the aggregate loan value of which, as assigned thereto by Amegy in the most recent setting of the Amegy Borrowing Base as part
of such a semi-annual redetermination, equals ten percent (10%) or less of the amount of the then existing Amegy Borrowing Base.
Section 7.5. Leasebacks. Enter into any agreement to sell or transfer any Property and thereafter rent or lease as lessee such Property or
other Property intended for the same use or purpose as the Property sold or transferred.
Section 7.6. Sale or Discount of Receivables. Except to minimize losses on bona fide debts previously contracted, discount or sell with
recourse, or sell for less than the greater of the face or market value thereof, any of its notes receivable or accounts receivable.
44 CREDIT AGREEMENT
Section 7.7. Loans or Advances. Make or agree to make or allow to remain outstanding any loans or advances to any Person; provided,
however, the foregoing restriction shall not apply to (a) advances or extensions of credit in the form of accounts receivable incurred in the
ordinary course of business and upon terms common in the industry for such accounts receivable, (b) advances to employees for the payment
of expenses in the ordinary course of business not exceeding $50,000 in the aggregate for Parent on a consolidated basis with its consolidated
Subsidiaries, (c) loans or advances by Parent to Borrower or by Borrower or any Domestic Subsidiary to a Subsidiary Guarantor, (d) loans or
advances by Parent, Borrower or any Domestic Subsidiary to Gastar Power or Narrabri Power Pty Ltd, an Australian proprietary limited
company, following the consummation of the acquisition described in Section 7.8(f), so long as the aggregate sum of the foregoing does not
exceed $10,000,000 outstanding at any time, when taken with the Investments permitted by Section 7.8(f), or (e) loans or advances by Parent,
Borrower or any Domestic Subsidiary that are permitted pursuant to Section 7.8(g).
Section 7.8. Investments. Make or acquire Investments in, or purchase or otherwise acquire all or substantially all of the assets of, any
Person; provided, however, the foregoing restriction shall not apply to the purchase or acquisition of:
(a) Oil and Gas Properties,
(b) Investments in the form of (i) debt securities issued or directly and fully guaranteed or insured by the United States Government or
any agency or instrumentality thereof, with maturities of no more than one year, or (ii) certificates of deposit, demand deposits, and bankers’
acceptances, with maturities of no more than one year from the date of acquisition, issued by or acquired from or through any Amegy Bank
Group Lender or Wells Fargo Bank, National Association,
(c) Investments in money-market funds sponsored or administered by Persons acceptable to Administrative Agent and which funds
invest in short-term Investments similar in nature and degree of risk to those described in clause (b) of this Section 7.8,
(d) evidences of loans or advances not prohibited by the provisions of Section 7.7,
(e) Investments by Parent in Borrower or by Borrower or any Domestic Subsidiary of Parent in a Subsidiary Guarantor,
(f) the acquisition by Borrower or a Guarantor of up to a thirty five percent (35%) equity interest in Narrabri Power Pty Ltd, an Australian
proprietary limited company, for a purchase price not to exceed the aggregate amount of $4,000,000 and, following the consummation of such
acquisition, further Investments by Borrower or such Guarantor in such entity, so long as the aggregate Investments by Borrower or such
Guarantor pursuant to this clause (f), including such initial purchase price, do not exceed the aggregate amount of $10,000,000, or
(g) other Investments of up to $2,000,000 in the aggregate made by Parent, Borrower or any Domestic Subsidiary in any Subsidiary of
Parent which is not a Subsidiary Guarantor.
45 CREDIT AGREEMENT
Section 7.9. Certain Payments, Dividends, and Distributions. Make or agree to make any voluntary prepayment on the Second Lien
Indebtedness; or declare, pay or make, whether in cash or Property, any dividend or distribution on, or purchase redeem or otherwise acquire
for value, any of its equity interests; provided, however, the foregoing restriction shall not apply to:
(a) dividends paid in equity interests,
(b) dividends or distributions made to Borrower or any of its Domestic Subsidiaries by any of their respective Domestic Subsidiaries or
purchases or redemptions by Borrower or any of its Domestic Subsidiaries of any equity interests of any of its Domestic Subsidiaries,
(c) so long as no Default or Event of Default exists or would result therefrom, dividends and distributions made by Borrower to Parent or
purchases or redemptions by Parent of equity interests in Borrower; provided, however, that such dividends, distributions, purchases or
redemptions made by Borrower to Parent shall not exceed the amount necessary for the payment by Parent of its cash operating expenses,
including general and administrative expenses, Taxes and scheduled debt service on the Indebtedness of Parent listed on Section 7.1 of the
Disclosure Schedule (provided that scheduled debt service shall not include payment at maturity when such maturity arises by way of
acceleration following a default),
(d) the purchase, redemption or other acquisition for value of any equity interests of Parent held by any current or former director or
employee of Parent pursuant to any director or employee equity subscription agreement or plan, stock option agreement or similar agreement
or plan, provided that the aggregate price paid for all such purchased, redeemed or acquired equity interests may not exceed $500,000 in any
calendar year, plus the amount of any such allowance not used in any prior calendar year, or
(e) the acquisition of equity interests in Parent by Parent in connection with the exercise of stock options or stock appreciation rights by
way of cashless exercise.
Section 7.10. Issuance of Equity; Changes in Corporate Structure. Except for issuances of common shares by Parent, issue or agree to
issue any equity interests constituting Indebtedness or any additional common equity interests to Persons other than its current equity
owners; enter into any transaction of consolidation, merger or amalgamation; or liquidate, wind up or dissolve (or suffer any liquidation or
dissolution); provided, however, that the foregoing shall not restrict transactions of merger, consolidation or amalgamation among any of the
Domestic Subsidiaries or, if Borrower is the surviving entity, between Borrower and any Domestic Subsidiary, or any liquidation, winding up
or dissolution of a Domestic Subsidiary of Borrower.
Section 7.11. Transactions with Affiliates. Directly or indirectly, enter into any transaction (including the sale, lease or exchange of
Property or the rendering of service) with any of its Affiliates (other than transactions entered into in the normal course of business between
Parent and Borrower or between Parent, Borrower or a Domestic Subsidiary with another Domestic Subsidiary not otherwise prohibited
hereunder), other than upon fair and reasonable terms no less favorable than could be obtained in an arm’s length transaction with a Person
which was not an Affiliate.
46 CREDIT AGREEMENT
Section 7.12. Lines of Business. Change its principal line of business from that in which it is engaged as of the date hereof. For the
avoidance of doubt, neither the acquisition of interests in power generation assets for the purpose of converting natural gas production to
electricity to facilitate the sale of such natural gas nor the Investment permitted by clause (f) of the proviso in Section 7.8 shall be prohibited.
Section 7.13. Plan Obligation. Assume or otherwise become subject to an obligation to contribute to or maintain any ERISA Plan or
acquire any Person which has at any time had an obligation to contribute to or maintain any ERISA Plan.
Section 7.14. Current Ratio. Permit the ratio, determined as of the end of each quarter of each fiscal year of Parent, of Current Assets to
Current Liabilities to be less than 1.00 to 1.00.
Section 7.15. Total Net Indebtedness to EBITDA Ratio. Permit the ratio, determined as of the end of each quarter of each fiscal year of
Parent, commencing with that ending on December 31, 2008, of (a) Indebtedness of Parent, on a consolidated basis with its consolidated
Subsidiaries, for borrowed money (exclusive, for the avoidance of doubt, of trade accounts payable and accrued liabilities, net unrealized
losses or charges in respect of Commodity Hedge Agreements or Interest Rate Hedge Agreements and the undrawn, unexpired amount of all
outstanding letters of credit issued pursuant to the Amegy Credit Agreement, if such would otherwise be included) in excess of the amount of
unrestricted (other than pursuant to applicable provisions of this Agreement or any other Loan Document, the Amegy Credit Agreement, the
Second Lien Credit Agreement or documents entered into pursuant thereto) cash or cash equivalents of Parent on a consolidated basis with
its consolidated Subsidiaries to (b) EBITDA for the preceding four quarterly periods (including that ended on the date of determination) to be
more than the ratio indicated below for each relevant period indicated below:
Ratio Pe riod
4.50:1.00 Quarter ended December 31, 2008 through December
31, 2009
4.00:1.00 Quarters ending thereafter
Section 7.16. General and Administrative Expenses. Permit, as of the close of each quarter of each fiscal year of Parent, commencing with
the quarter ending after the date of the initial Loan, general and administrative expenses of Parent (determined in accordance with GAAP and
on a consolidated basis for Parent and its consolidated Subsidiaries, but excluding compensation in the form of shares of common stock of
Parent or rights to acquire shares of common stock of Parent) for the relevant quarter to exceed twenty five percent (25%) of revenue of Parent
on a consolidated basis with its consolidated Subsidiaries from the sale of hydrocarbons, adjusted for net realized gains and losses on
Commodity Hedge Agreements, for the relevant quarter less the sum of (a) lease operating expenses (other than non-recurring costs, such as
workover costs otherwise constituting lease operating expenses) and (b) Taxes on hydrocarbon production for the relevant quarter; provided,
however, in calculating such ratio, third party implementation and optimization costs regarding Commodity Hedge Agreements up to a
maximum, as to any such quarter, of ten percent (10%) of general and administrative expenses of Parent (determined on a consolidated basis
for Parent and its consolidated Subsidiaries and on a cash, rather than accrual, basis, but excluding compensation in the form of
47 CREDIT AGREEMENT
shares of common stock of Parent or rights to acquire shares of common stock of Parent) for the twelve-month period ended on the last day of
the relevant quarter shall not be included in general and administrative expenses, but instead will be deducted in calculating net realized
hedging gains and losses.
Section 7.17. Amendments to Amegy Indebtedness. Amend, modify or otherwise change (or permit the amendment, modification or other
change in any manner of) any of the provisions of the Amegy Credit Agreement or of any Loan Document (as such term is defined in the
Amegy Credit Agreement) if such amendment, modification or change would (a) shorten the final maturity or average life to maturity of, or
require any payment to be made earlier than the date originally scheduled on, such Indebtedness, (b) increase the interest rate applicable to
such Indebtedness, (c) increase fees payable thereunder, (d) increase the Amegy Borrowing Base above the amount of $30,000,000 or such
greater amount not to exceed $60,000,000 as shall be approved by Required Lenders in their discretion, or (e) otherwise be adverse to any
Lender Party in any respect.
Section 7.18. Anti-Terrorism Laws. Conduct any business or engage in any transaction or dealing with any Blocked Person, including the
making or receiving of any contribution of funds, goods or services to or for the benefit of any Blocked Person; deal in, or otherwise engage in
any transaction relating to, any Property or interests in Property blocked pursuant to Executive Order No. 13224; or engage in on conspire to
engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, (i) any of the prohibitions
set forth in Executive Order No. 13224 or the USA Patriot Act, or (ii) any prohibitions set forth in the rules or regulations issued by OFAC or
any sanctions against targeted foreign countries, terrorism sponsoring organizations, and international narcotics traffickers based on United
States foreign policy.
Section 7.19. Non-Disclosure. DELIVER, DISCLOSE OR OTHERWISE PROVIDE TO ANY LENDER PARTY (OR ANY OF ITS DIRECTORS,
OFFICERS, EMPLOYEES, OR AGENTS) ANY MATERIAL NON-PUBLIC INFORMATION WITH RESPECT TO PARENT, ANY OF ITS SUBSIDIARIES, OR ITS
DEBT OR EQUITY SECURITIES, UNLESS SUCH LENDER PARTY MAKES A WRITTEN REQUEST THEREFOR.
ARTICLE VIII - Events of Default and Remedies
Section 8.1. Events of Default. Each of the following events constitutes an Event of Default under this Agreement:
(a) Any Restricted Person fails to pay any principal of any Loan when due and payable, whether at a date for the payment of a fixed
installment or as a contingent or other payment becomes due and payable or as a result of acceleration or otherwise;
(b) Any Restricted Person fails to pay any Obligation (other than the Obligations in subsection (a) above) when due and payable,
whether at a date for the payment of a fixed installment or as a contingent or other payment becomes due and payable or as a result of
acceleration or otherwise, within five Business Days after the same becomes due;
48 CREDIT AGREEMENT
(c) Any “default” or “event of default” occurs under any Loan Document which defines either such term, and the same is not remedied
within the applicable period of grace (if any) provided in such Loan Document;
(d) Any Restricted Person fails to duly observe, perform or comply with any covenant, agreement or provision of Section 6.4 or Article
VII;
(e) Any Restricted Person fails (other than as referred to in subsections (a), (b), (c) or (d) above) to duly observe, perform or comply with
any covenant, agreement, condition or provision of any Loan Document to which it is a party, and such failure remains unremedied for a
period of thirty (30) days after the earlier of (i) notice of such failure is given by Administrative Agent to Borrower or (ii) knowledge thereof by
the applicable Restricted Person;
(f) Any representation or warranty previously, presently or hereafter made in writing by or on behalf of any Restricted Person in any
Loan Document shall prove to have been false or incorrect in any material respect on any date on or as of which made;
(g) any Security Document shall for any reason not (or cease to) create valid and perfected first priority Liens (subject only to Permitted
Liens) against the Collateral purportedly covered thereby, except to the extent permitted by this Agreement or cured or corrected on or before
the tenth day after notice thereof to Borrower or Borrower otherwise becoming aware thereof;
(h) Borrower or any of the Guarantors contests in any manner the validity or enforceability of any provision of any Loan Document, or
denies that it has any liability under any Loan Document;
(i) Any Restricted Person fails to duly observe, perform or comply with any agreement with any Person or any term or condition of any
instrument, if such agreement or instrument is materially significant to Borrower or to Borrower and its Subsidiaries on a consolidated basis or
materially significant to any Guarantor, and such failure is not remedied within the applicable period of grace (if any) provided in such
agreement or instrument;
(j) Any Restricted Person (i) fails to pay any portion, when such portion is due, of any of its Indebtedness in excess of $500,000, or
(ii) breaches or defaults in the performance of any agreement or instrument by which any such Indebtedness is issued, evidenced, governed,
or secured, and any such failure, breach or default continues beyond any applicable period of grace provided therefor;
(k) Either (i) any “accumulated funding deficiency” (as defined in Section 412(a) of the Internal Revenue Code) in excess of $500,000
exists with respect to any ERISA Plan, whether or not waived by the Secretary of the Treasury or his delegate, or (ii) any Termination Event
occurs with respect to any ERISA Plan and the then current value of such ERISA Plan’s benefit liabilities exceeds the then current value of
such ERISA Plan’s assets available for the payment of such benefit liabilities by more than $100,000 (or in the case of a Termination Event
involving the withdrawal of a substantial employer, the withdrawing employer’s proportionate share of such excess exceeds such amount);
49 CREDIT AGREEMENT
(l) Any Restricted Person:

(i) suffers the entry against it of a judgment, decree or order for relief by a Tribunal of competent jurisdiction in an involuntary
proceeding commenced under any applicable bankruptcy, insolvency or other similar Law of any jurisdiction now or hereafter in effect,
including any Debtor Relief Law, as from time to time amended, or has any such proceeding commenced against it which remains
undismissed for a period of sixty days; or
(ii) commences a voluntary case under any applicable bankruptcy, insolvency or similar Law now or hereafter in effect, including
any Debtor Relief Law, as from time to time amended; or applies for or consents to the entry of an order for relief in an involuntary case
under any such Law; or makes a general assignment for the benefit of creditors; or is generally not paying (or admits in writing its
inability to pay) its debts as such debts become due; or takes corporate or other action authorizing any of the foregoing; or
(iii) suffers the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of all or a substantial part of its assets or of any material part of the Collateral in a proceeding brought against or initiated by it,
and such appointment or taking possession is neither made ineffective nor discharged within sixty days after the making thereof, or such
appointment or taking possession is at any time consented to, requested by, or acquiesced to by it; or
(iv) suffers the entry against it of one or more final judgments or orders for the payment of money in an aggregate amount (as to all
such judgments or orders) in excess of $1,000,000 (not covered by insurance satisfactory to Administrative Agent in its discretion),
unless the same is discharged within sixty days after the date of entry thereof or an appeal or appropriate proceeding for review thereof
is taken within such period and a stay of execution pending such appeal is obtained; or
(v) suffers a writ or warrant of attachment or any similar process to be issued by any Tribunal against all or any substantial part of
its assets or any part of the Collateral, and such writ or warrant of attachment or any similar process is not stayed or released within sixty
days after the entry or levy thereof or after any stay is vacated or set aside;
(m) Any “Event of Default” occurs under the Amegy Credit Agreement;
(n) Any “Event of Default” occurs under the Second Lien Credit Agreement; or
(o) Any “Event of Default” or “Termination Event” occurs under any Secured Hedging Contract by or with respect to Borrower, Parent,
or any Affiliate of Parent.
Upon the occurrence of an Event of Default described in subsection (l)(i), (l)(ii) or (l)(iii) of this section with respect to any Restricted Person,
all of the Obligations shall thereupon be immediately due and payable, without demand, presentment, notice of demand or of dishonor and
nonpayment, protest, notice of protest, notice of intention to accelerate, declaration or notice
50 CREDIT AGREEMENT
of acceleration, or any other notice or declaration of any kind, all of which are hereby expressly waived by Borrower and each Restricted
Person who at any time ratifies or approves this Agreement. Upon any such acceleration, any obligation of any Lender to make any further
Loans hereunder shall be permanently terminated. During the continuance of any other Event of Default, Administrative Agent at any time and
from time to time may (and upon written instructions from Required Lenders, Administrative Agent shall), without notice to Borrower or any
other Restricted Person, do either or both of the following: (1) terminate any obligation of Lenders to make Loans hereunder, and (2) declare
any or all of the Obligations immediately due and payable, and all such Obligations shall thereupon be immediately due and payable, without
demand, presentment, notice of demand or of dishonor and nonpayment, protest, notice of protest, notice of intention to accelerate,
declaration or notice of acceleration, or any other notice or declaration of any kind, all of which are hereby expressly waived by Borrower and
each Restricted Person who at any time ratifies or approves this Agreement. Upon any acceleration of the entire unpaid balance of any Note
pursuant to this Section 8.1, the applicable Lender shall be entitled to any Prepayment Premium on such Note (calculated in accordance with
Section 2.6) in addition to all other amounts due and payable in respect of such Note and any other Obligations.
Section 8.2. Remedies. If any Default shall occur and be continuing, Required Lenders, or Administrative Agent at the direction of
Required Lenders, may protect and enforce its rights under the Loan Documents by any appropriate proceedings, including proceedings for
specific performance of any covenant or agreement contained in any Loan Document. All rights, remedies and powers conferred upon Lender
Parties under the Loan Documents shall be deemed cumulative and not exclusive of any other rights, remedies or powers available under the
Loan Documents or at Law or in equity.
Section 8.3. Application of Proceeds After Acceleration. After the exercise of remedies provided for in Section 8.2 (or after the Loans
have automatically become immediately due and payable), any amounts received on account of the Obligations shall be applied by
Administrative Agent in the following order:
First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees,
charges and disbursements of counsel to Administrative Agent (including fees and time charges for attorneys who may be employees of
Administrative Agent) and amounts payable under Article III) payable to Administrative Agent in its capacity as such;
Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and
interest) payable to Lenders (including fees, charges and disbursements of counsel to the respective Lenders and amounts payable
under Article III), ratably among them in proportion to the respective amounts described in this clause Second payable to them and the
Lender;
Third, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans, ratably among Lenders,
in proportion to the respective amounts described in this clause Third payable to them;
51 CREDIT AGREEMENT
Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans, ratably among Lenders in
proportion to the respective amounts described in this clause Fourth held by them;
Fifth, to payment of any other Obligations; and
Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to Borrower or as otherwise required by
Law.
ARTICLE IX - Administrative Agent
Section 9.1. Appointment and Authority. Each of the Lenders hereby irrevocably appoints Wayzata Investment Partners LLC to act on
its behalf as Administrative Agent hereunder and under the other Loan Documents and authorizes Administrative Agent to take such actions
on its behalf and to exercise such powers as are delegated to Administrative Agent by the terms hereof or thereof, together with such actions
and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of Administrative Agent and the
Lenders, and neither Borrower nor any other Restricted Person shall have rights as a third party beneficiary of any of such provisions. Such
appointment of Wayzata Investment Partners LLC as Administrative Agent shall not, however, impair or modify any rights, obligations or
duties that Wayzata Investment Partners LLC or any Affiliate of Wayzata Investment Partners LLC otherwise has with respect to any Lender.
Section 9.2. Exculpatory Provisions. Administrative Agent shall not have any duties or obligations except those expressly set forth
herein and in the other Loan Documents. Without limiting the generality of the foregoing, Administrative Agent:
(a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;
(b) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby or by the other Loan Documents that Administrative Agent is required to exercise as directed in writing by the
Required Lenders (or such other number or percentage of Lenders as shall be expressly provided for herein or in the other Loan Documents),
provided that Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose
Administrative Agent to liability or that is contrary to any Loan Document or applicable law; and
(c) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for
the failure to disclose, any information relating to Borrower or any of its Affiliates that is communicated to or obtained by the Person serving
as Administrative Agent or any of its Affiliates in any capacity.
Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of Required Lenders
(or such other number or percentage of the Lenders as shall be necessary, or as Administrative Agent shall believe in good faith shall be
52 CREDIT AGREEMENT
necessary, under the circumstances as provided in Sections 10.1 and 8.2) or (ii) in the absence of its own gross negligence or willful
misconduct. Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is
given to Administrative Agent by Borrower or a Lender.
Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other
document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered
Section 9.3. Reliance by Administrative Agent. Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message,
Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise
authenticated by the proper Person. Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by
it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition
hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, Administrative Agent may presume that
such condition is satisfactory to such Lender unless Administrative Agent shall have received notice to the contrary from such Lender prior
to the making of such Loan. Administrative Agent may consult with legal counsel (who may be counsel for Borrower), independent
accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any
such counsel, accountants or experts.
Section 9.4. Non-Reliance on Administrative Agent and Other Lenders. Each Lender acknowledges that it has, independently and
without reliance upon Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information
as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon Administrative Agent or any other Lender or any of their Related Parties and based on such
documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.
Section 9.5. Rights as a Lender. The Person serving as Administrative Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it were not Administrative Agent and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as Administrative
Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor
or in any other advisory capacity for and generally engage in any kind of business with Borrower or any Subsidiary or other Affiliate thereof
as if such Person were not Administrative Agent hereunder and without any duty to account therefor to the Lenders.
53 CREDIT AGREEMENT
Section 9.6. Sharing of Set-Offs and Other Payments. Each Lender Party agrees that if it shall, whether through the exercise of rights
under Security Documents or rights of banker’s lien, set off, or counterclaim against Borrower or otherwise, obtain payment of a portion of the
aggregate Obligations owed to it, taking into account all distributions made by Administrative Agent under Section 3.1, and such payment
causes such Lender Party to have received more than it would have received had such payment been received by Administrative Agent and
distributed pursuant to Section 3.1, then (a) it shall be deemed to have simultaneously purchased and shall be obligated to purchase interests
in the Obligations as necessary to cause all Lender Parties to share all payments as provided for in Section 3.1, and (b) such other adjustments
shall be made from time to time as shall be equitable to ensure that Administrative Agent and all Lender Parties share all payments of
Obligations as provided in Section 3.1; provided, however, that nothing herein contained shall in any way affect the right of any Lender Party
to obtain payment (whether by exercise of rights of banker’s lien, set-off or counterclaim or otherwise) of indebtedness other than the
Obligations. Borrower expressly consents to the foregoing arrangements and agrees that any holder of any such interest or other participation
in the Obligations, whether or not acquired pursuant to the foregoing arrangements, may to the fullest extent permitted by Law exercise any
and all rights of banker’s lien, set-off, or counterclaim as fully as if such holder were a holder of the Obligations in the amount of such interest
or other participation. If all or any part of any funds transferred pursuant to this section is thereafter recovered from the seller under this
section which received the same, the purchase provided for in this section shall be deemed to have been rescinded to the extent of such
recovery, together with interest, if any, if interest is required pursuant to the order of a Tribunal order to be paid on account of the possession
of such funds prior to such recovery.
Section 9.7. Investments. Whenever Administrative Agent in good faith determines that it is uncertain about how to distribute to Lender
Parties any funds which it has received, or whenever Administrative Agent in good faith determines that there is any dispute among Lender
Parties about how such funds should be distributed, Administrative Agent may choose to defer distribution of the funds which are the subject
of such uncertainty or dispute. If Administrative Agent in good faith believes that the uncertainty or dispute will not be promptly resolved, or
if Administrative Agent is otherwise required to invest funds pending distribution to Lender Parties, Administrative Agent shall invest such
funds pending distribution; all interest on any such Investment shall be distributed upon the distribution of such Investment and in the same
proportion and to the same Persons as such Investment. All moneys received by Administrative Agent for distribution to Lender Parties
(other than to the Person who is Administrative Agent in its separate capacity as a Lender Party) shall be held by Administrative Agent
pending such distribution solely as Administrative Agent for such Lender Parties, and Administrative Agent shall have no equitable title to
any portion thereof.
Section 9.8. Resignation of Administrative Agent. Administrative Agent may at any time give notice of its resignation to the Lenders and
Borrower. Upon receipt of any such notice of resignation, Required Lenders shall have the right, in consultation with Borrower, to appoint a
successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States. If no
such successor shall have been so appointed by
54 CREDIT AGREEMENT
Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent may on behalf of the Lenders, appoint a successor Administrative Agent meeting the
qualifications set forth above provided that if Administrative Agent shall notify Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (1) the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the
case of any Collateral held by Administrative Agent on behalf of the Lenders under any of the Loan Documents, the retiring Administrative
Agent shall continue to hold such Collateral until such time as a successor Administrative Agent is appointed) and (2) all payments,
communications and determinations provided to be made by, to or through Administrative Agent shall instead be made by or to each Lender
directly, until such time as Required Lenders appoint a successor Administrative Agent as provided for above in this Section. Upon the
acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be
discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as
provided above in this Section). The fees payable by Borrower to a successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between Borrower and such successor. After the retiring Administrative Agent’s resignation hereunder
and under the other Loan Documents, the provisions of this Article and Section 10.4 shall continue in effect for the benefit of such retiring
Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them
while the retiring Administrative Agent was acting as Administrative Agent.
Section 9.9. Delegation of Duties. Administrative Agent may perform any and all of its duties and exercise its rights and powers
hereunder or under any other Loan Document by or through any one or more sub-agents appointed by Administrative Agent. Administrative
Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related
Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of Administrative Agent and
any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein
as well as activities as Administrative Agent.
Section 9.10. Administrative Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Restricted Person,
Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or
otherwise and irrespective of whether Administrative Agent shall have made any demand on Borrower) shall be entitled and empowered, by
intervention in such proceeding or otherwise
(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other
Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of
Lenders and Administrative Agent (including any claim for the reasonable compensation, expenses,
55 CREDIT AGREEMENT
disbursements and advances of Lenders and Administrative Agent and their respective agents and counsel and all other amounts due
Lenders and Administrative Agent under Section 2.5 and 10.4) allowed in such judicial proceeding; and
(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby
authorized by each Lender to make such payments to Administrative Agent and, in the event that Administrative Agent shall consent to the
making of such payments directly to Lenders, to pay to Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of Administrative Agent and its agents and counsel, and any other amounts due Administrative Agent under
Sections 2.5 and 10.4. Nothing contained herein shall be deemed to authorize Administrative Agent to authorize or consent to or accept or
adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of
any Lender or to authorize Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.
Section 9.11. Guaranty Matters. Each Lender hereby irrevocably authorizes Administrative Agent, at its option and in its discretion, to
release any Guarantor from its obligations under the Guaranty (i) if such Person ceases to be a Subsidiary as a result of a transaction permitted
hereunder and (ii) upon termination of each Lender’s Commitment and payment in full of all Obligations (other than contingent indemnification
obligations). Upon request by Administrative Agent at any time, each Lender will confirm in writing Administrative Agent’s authority to
release any Guarantor from its obligations under the Subsidiary Guaranty pursuant to this Section 9.11.
Section 9.12. Collateral Matters.

(a) Each Lender hereby irrevocably authorizes and directs Administrative Agent to (i) enter into the Security Documents for the benefit
of such Lender, (ii) instruct Collateral Agent to enter into such Security Documents, and (iii) provide such other instructions to Collateral
Agent that are consistent with Administrative Agent’s authority under this Section 9.12. Each Lender hereby agrees, and each holder of any
Note by the acceptance thereof will be deemed to agree, that, except as otherwise set forth in Section 10.1, any action taken by the Required
Lenders, in accordance with the provisions of this Agreement or the Security Documents, and the exercise by the Required Lenders of the
powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon
all of Lenders. Administrative Agent is hereby authorized (but not obligated) on behalf of all of Lenders, without the necessity of any notice to
or further consent from any Lender from time to time prior to, an Event of Default, to take any action with respect to any Collateral or Security
Documents which may be necessary to perfect and maintain perfected the Liens upon the Collateral granted pursuant to the Security
Documents.
(b) Each Lender hereby irrevocably authorize Administrative Agent, at its option and in its discretion to release any Lien on any property
granted to or held by Administrative Agent under any Loan Document (A) upon termination of each Lender’s Commitment and payment in
56 CREDIT AGREEMENT
full of all Obligations (other than contingent indemnification obligations), (B) that is sold or to be sold as part of or in connection with any sale
permitted hereunder or under any other Loan Document, (C) subject to Section 10.1, if approved, authorized or ratified in writing by the
Required Lenders, or (D) in connection with any foreclosure sale or other disposition of Collateral after the occurrence of an Event of Default.
Upon request by Administrative Agent at any time, each Lender will confirm in writing Administrative Agent’s authority to release its interest
in particular types or items of Collateral pursuant to this Section 9.12.
(c) Subject to (b) above, Administrative Agent shall (and is hereby irrevocably authorized by each Lender, to) execute such documents
as may be necessary to evidence the release of the Liens granted to Administrative Agent for the benefit of Administrative Agent and Lenders
herein or pursuant hereto upon the applicable Collateral; provided that (i) Administrative Agent shall not be required to execute any such
document on terms which, in Administrative Agent’s opinion, would expose Administrative Agent to or create any liability or entail any
consequence other than the release or subordination of such Liens without recourse or warranty and (ii) such release shall not in any manner
discharge, affect or impair the Obligations or any Liens upon (or obligations of Borrower or any other Restricted Person in respect of) all
interests retained by Borrower or any other Restricted Person, including the proceeds of the sale, all of which shall continue to constitute part
of the Collateral. In the event of any sale or transfer of Collateral, or any foreclosure with respect to any of the Collateral, Administrative Agent
shall be authorized to deduct all expenses reasonably incurred by Administrative Agent from the proceeds of any such sale, transfer or
foreclosure.
(d) Administrative Agent shall have no obligation whatsoever to any Lender or any other Person to assure that the Collateral exists or is
owned by Borrower or any other Restricted Person or is cared for, protected or insured or that the Liens granted to Administrative Agent
herein or in any of the Security Documents or pursuant hereto or thereto have been properly or sufficiently or lawfully created, perfected,
protected or enforced or are entitled to any particular priority, or to exercise or to continue exercising at all or in any manner or under any duty
of care, disclosure or fidelity any of the rights, authorities and powers granted or available to Administrative Agent in this Section 9.12 or in
any of the Security Documents, it being understood and agreed that in respect of the Collateral, or any act, omission or event related thereto,
Administrative Agent may act in any manner it may deem appropriate, in its sole discretion, given Administrative Agent’s own interest in the
Collateral as one of Lenders and that Administrative Agent shall have no duty or liability whatsoever to Lenders.
(e) Each Lender hereby appoints each other Lender as agent for the purpose of perfecting Lenders’ security interest in assets which, in
accordance with Article 9 of the UCC can be perfected only by possession. Should any Lender (other than Administrative Agent) obtain
possession of any such Collateral, such Lender shall notify Administrative Agent thereof, and, promptly upon Administrative Agent’s request
therefor shall deliver such Collateral to Administrative Agent or in accordance with Administrative Agent’s instructions.
57 CREDIT AGREEMENT
ARTICLE X - Miscellaneous
Section 10.1. Waivers and Amendments; Acknowledgments.

(a) Waivers and Amendments. No failure or delay (whether by course of conduct or otherwise) by any Lender in exercising any right,
power or remedy which such Lender Party may have under any of the Loan Documents shall operate as a waiver thereof or of any other right,
power or remedy, nor shall any single or partial exercise by any Lender Party of any such right, power or remedy preclude any other or further
exercise thereof or of any other right, power or remedy. No waiver of any provision of any Loan Document and no consent to any departure
therefrom shall ever be effective unless it is in writing and signed as provided below in this section, and then such waiver or consent shall be
effective only in the specific instances and for the purposes for which given and to the extent specified in such writing. No notice to or
demand on any Restricted Person shall in any case of itself entitle any Restricted Person to any other or further notice or demand in similar or
other circumstances. This Agreement and the other Loan Documents set forth the entire understanding between the parties hereto with
respect to the transactions contemplated herein and therein and supersede all prior discussions and understandings with respect to the
subject matter hereof and thereof, and no waiver, consent, release, modification or amendment of or supplement to this Agreement or the other
Loan Documents shall be valid or effective against any party hereto unless the same is in writing and signed by (i) if such party is Borrower,
by Borrower, (ii) if such party is Parent, by Parent, (iii) if such party is Administrative Agent, by such party, and (iv) if such party is a Lender,
by such Lender or by Administrative Agent on behalf of Lenders with the written consent of Required Lenders. Notwithstanding the
foregoing or anything to the contrary herein, Administrative Agent shall not, without the prior consent of each individual Lender, execute and
deliver on behalf of such Lender any waiver or amendment which would: (1) waive any of the conditions specified in Article IV, (2) increase the
maximum amount which such Lender is committed hereunder to lend, (3) reduce any fees payable to such Lender hereunder, or the principal of,
or interest on, such Lender’s Note, (4) extend the Maturity Date or postpone any date fixed for any payment of any such fees, principal or
interest, (5) amend the definition herein of “Required Lenders” or otherwise change the aggregate amount of Percentage Shares which is
required for Administrative Agent, Lenders or any of them to take any particular action under the Loan Documents, (6) release Borrower from
its obligation to pay such Lender’s Obligations or any Guarantor from its guaranty of such payment (except as provided by Section 9.11),
(7) release all or substantially all of the Collateral (except for such releases relating to sales or dispositions of property permitted by the Loan
Documents), or (8) amend this Section 10.1(a).
(b) Acknowledgments and Admissions. Borrower hereby represents, warrants, acknowledges and admits that (i) it has been advised by
counsel in the negotiation, execution and delivery of the Loan Documents to which it is a party, (ii) it has made an independent decision to
enter into this Agreement and the other Loan Documents to which it is a party, without reliance on any representation, warranty, covenant or
undertaking by Administrative Agent or any Lender, whether written, oral or implicit, other than as expressly set out in this Agreement or in
another Loan Document delivered on or after the date hereof, (iii) there are no representations, warranties, covenants, undertakings or
agreements by any Lender Party as to the Loan Documents except as expressly set out in this Agreement or in another Loan Document
delivered on or after the date hereof, (iv) no Lender Party has any fiduciary obligation toward Borrower with respect to any Loan Document or
the transactions contemplated thereby, (v) the relationship pursuant to the Loan Documents between Borrower and the other Restricted
Persons, on one hand, and each Lender Party, on the other hand, is and shall be solely that of debtor and creditor, respectively, provided that,
solely for purposes of Section 10.5(c) Administrative Agent shall act
58 CREDIT AGREEMENT
as agent of Borrower in maintaining the Register as set forth therein, (vi) no partnership or joint venture exists with respect to the Loan
Documents between any Restricted Person and any Lender Party, (vii) Administrative Agent is not Borrower’s Administrative Agent, but
Administrative Agent for Lenders, provided that, solely for purposes of Section 10.5(c) Administrative Agent shall act as agent of Borrower in
maintaining the Register as set forth therein, (viii) should an Event of Default or Default occur or exist, each Lender Party will determine in its
sole discretion and for its own reasons what remedies and actions it will or will not exercise or take at that time, (ix) without limiting any of the
foregoing, Borrower is not relying upon any representation or covenant by any Lender Party, or any representative thereof, and no such
representation or covenant has been made, that any Lender Party will, at the time of an Event of Default or Default, or at any other time, waive,
negotiate, discuss, or take or refrain from taking any action permitted under the Loan Documents with respect to any such Event of Default or
Default or any other provision of the Loan Documents, and (x) all Lender Parties have relied upon the truthfulness of the acknowledgments in
this section in deciding to execute and deliver this Agreement and to become obligated hereunder.
(c) Joint Acknowledgment. THIS WRITTEN AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT 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.
Section 10.2. Survival of Agreements; Cumulative Nature. All of Restricted Persons’ various representations, warranties, covenants and
agreements in the Loan Documents shall survive the execution and delivery of this Agreement and the other Loan Documents and the
performance hereof and thereof, including the making or granting of the Loans and the delivery of the Notes and the other Loan Documents,
and shall further survive until all of the Obligations are paid in full to each Lender Party and all of Lender Parties’ obligations to Borrower are
terminated. Notwithstanding the foregoing or anything herein to the contrary, any waivers or admissions made by any Restricted Person in
any Loan Document, any Obligations under Sections 3.2 through Section 3.6, and any obligations which any Person may have to indemnify or
compensate any Lender Party shall survive any termination of this Agreement or any other Loan Document. All statements and agreements
contained in any certificate or other instrument delivered by any Restricted Person to any Lender Party under any Loan Document shall be
deemed representations and warranties by Borrower or agreements and covenants of Borrower under this Agreement. The representations,
warranties, indemnities, and covenants made by Restricted Persons in the Loan Documents, and the rights, powers, and privileges granted to
Lender Parties in the Loan Documents, are cumulative, and, except for expressly specified waivers and consents, no Loan Document shall be
construed in the context of another to diminish, nullify, or otherwise reduce the benefit to any Lender Party of any such representation,
warranty, indemnity, covenant, right, power or privilege. In particular and without limitation, no exception set out in this Agreement to any
representation, warranty, indemnity, or covenant herein contained shall apply to any similar representation, warranty, indemnity, or covenant
contained in any other Loan Document, and each such similar representation, warranty, indemnity, or covenant shall be subject only to those
exceptions which are expressly made applicable to it by the terms of the various Loan Documents.
59 CREDIT AGREEMENT
Section 10.3. Notices. All notices, requests, consents, demands and other communications required or permitted under any Loan
Document shall be in writing, unless otherwise specifically provided in such Loan Document (provided that Administrative Agent may give
telephonic notices to the other Lender Parties), and shall be deemed sufficiently given or furnished if delivered by personal delivery, by
facsimile, by electronic mail or other electronic form, by delivery service with proof of delivery, or by registered or certified United States mail,
postage prepaid, to Borrower, Parent and the Restricted Persons at the address of Borrower specified below, to Administrative Agent at the
address of Administrative Agent specified below, and to each Lender at the address specified in the Lenders Schedule (unless changed by
similar notice in writing given by the particular Person whose address is to be changed). Any such notice or communication shall be deemed
to have been given (a) in the case of personal delivery or delivery service, as of the date of first attempted delivery during normal business
hours at the address provided herein, (b) in the case of facsimile, upon receipt, or (c) in the case of registered or certified United States mail,
three days after deposit in the mail; provided, however, that no Borrowing Notice shall become effective until actually received by
Administrative Agent. Electronic mail and internet and intranet websites may be used only to distribute routine communications, such as
financial statements and other information as provided in Sections 6.2, 6.3, and 6.4 and to distribute Loan Documents for execution by the
parties thereto, and may not be used for any other purpose.
If to Parent, Borrower, or any other Restricted Person:

1331 Lamar Street, Suite 1080
Houston, Texas 77010
Facsimile: (713) 739-0458
Attention: Chief Executive Officer
rporter@gastar.com
Attention: Chief Financial Officer
mgerlich@gastar.com
If to Administrative Agent:
701 East Lake Street, Suite 300
Wayzata, Minnesota 55391
Facsimile: (612) 345-8901
Attention: Blake Carlson
bcarlson@wayzpartners.com
Ray Wallander
rwallander@wayzpartners.com
Mike Strain
mstrain@wayzpartners.com
60 CREDIT AGREEMENT
Any party may, by proper written notice hereunder to the others, change the individuals of addresses to which such notices to it shall
thereafter be sent.
Section 10.4. Expenses; Damage Waiver.

(a) Costs and Expenses. Borrower shall promptly pay (i) all transfer, stamp, mortgage, documentary or other similar taxes, assessments or
charges levied by any governmental or revenue authority in respect of this Agreement or any of the other Loan Documents or any other
document or transaction referred to herein or therein, (ii) all reasonable third party costs and expenses incurred by or on behalf of
Administrative Agent and Lenders (including fees and expenses of attorneys, consultants, reserve engineers, accountants, and other
advisors, travel costs and miscellaneous expenses) in connection with (1) the negotiation, preparation, execution and delivery of the Loan
Documents, and any and all consents, waivers or other documents or instruments relating thereto, (2) the filing, recording, refiling and re-
recording of any Loan Documents and any other documents or instruments or further assurances required to be filed or recorded or refiled or
re-recorded by the terms of any Loan Document, (3) any action reasonably required in the course of administration hereof, or (4) monitoring or
confirming (or preparation or negotiation of any document related to) any Restricted Person’s compliance with any covenants or conditions
contained in this Agreement or in any Loan Document, and (iii) all reasonable costs and expenses incurred by or on behalf of any Lender Party
(including fees and expenses of attorneys, consultants, reserve engineers, accountants, and other advisors, travel costs, court costs, and
miscellaneous expenses) in connection with the preservation of any rights under the Loan Documents, the exercise or enforcement of any
rights or remedies under the Loan Documents (including this section), or the defense of any such exercise or enforcement.
(b) Reimbursement by Lenders. To the extent that any Restricted Person for any reason fails to indefeasibly pay any amount required
under Section 10.4(a), Section 6.20, or Section 6.21 to be paid by it to Administrative Agent (or any sub-agent thereof) or any Related Party of
any of the foregoing, each Lender severally agrees to pay to Administrative Agent (or any such sub-agent) or such Related Party, as the case
may be, such Lender’s Percentage Share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought)
of such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against Administrative Agent (or any such sub-agent) in its capacity as such, or against any Related
Party of any of the foregoing acting for Administrative Agent (or any such sub-agent) in connection with such capacity. The obligations of
the Lenders under this paragraph (c) are subject to the provisions of Section 2.7.
(c) Waiver of Consequential Damages, Etc. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER SHALL NOT ASSERT,
AND HEREBY WAIVES, ANY CLAIM AGAINST ANY INDEMNITEE, ON ANY THEORY OF LIABILITY, FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR
PUNITIVE DAMAGES (AS OPPOSED TO DIRECT OR ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF, THIS
AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY, THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY, ANY LOAN OR THE USE OF THE PROCEEDS THEREOF. No Indemnitee referred to in paragraph (b) above
shall be liable for any
61 CREDIT AGREEMENT
damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications,
electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby.
(d) Payments. All amounts due under this Section shall be payable not later than ten (10) days after written demand therefor.
Section 10.5. Successors and Assigns; Joint and Several Liability.

(a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby, except that neither Borrower nor any other Restricted Person may assign
or otherwise transfer any of its rights or obligations under any Loan Document without the prior written consent of Administrative Agent and
each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in
accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection
(d) of this Section or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and
any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall
be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of
Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b) Assignments by Lenders. With the consent of Administrative Agent and, except when a Default or an Event of Default shall have
occurred and is continuing, Borrower (which consent shall not be unreasonably withheld or delayed in either case), any Lender may at any
time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement and the other Loan
Documents (including all or a portion of its Commitment and the Loans at the time owing to it); provided that
(i) except in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loans at the
time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the
aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is
not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Assumption with respect to such assignment is delivered to Administrative Agent or, if “Trade Date”
is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $1,000,000, unless Administrative Agent
otherwise consents;
(ii) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement with respect to the Loan or the Commitment assigned,;
62 CREDIT AGREEMENT
(iii) any assignment of a Commitment must be approved by Administrative Agent unless the Person that is the proposed assignee
is itself a Lender with a Commitment (whether or not the proposed assignee would otherwise qualify as an Eligible Assignee); and
(iv) the parties to each assignment shall execute and deliver to Administrative Agent an Assignment and Assumption, and the
Eligible Assignee, if it shall not be a Lender, shall deliver to Administrative Agent an Administrative Questionnaire in form satisfactory
Subject to acceptance and recording thereof by Administrative Agent pursuant to subsection (c) of this Section, from and after the effective
date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the
assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits, and subject to
the requirements of, of Sections 3.2, 3.3, 3.4, and 10.4 with respect to facts and circumstances occurring prior to the effective date of such
assignment. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection
shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with
subsection (d) of this Section.
(c) Participations. Any Lender may at any time, without the consent of, or notice to, Borrower or Administrative Agent, sell participations
to any Person (other than a natural person or Borrower or any of Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion
of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its commitment and/or the Loans owing to it);
provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to
the other parties hereto for the performance of such obligations, and (iii) Borrower, Administrative Agent and the Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement or
instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver
described in the fifth sentence of Section 10.1(a) that affects such Participant. Subject to subsection (e) of this Section, Borrower agrees that
each Participant shall be entitled to the benefits of, and subject to the requirements of, Sections 3.2, 3.3 and 3.4 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section. To the extent permitted by Law, each
Participant also shall be entitled to the benefits of Section 2.10 as though it were a Lender, provided such Participant agrees to be subject to
Section 9.6 as though it were a Lender.
63 CREDIT AGREEMENT
(d) Limitations upon Participant Rights. A Participant shall not be entitled to receive any greater payment under Sections 3.2 and 3.4 than
the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender
shall not be entitled to the benefits of Section 3.3 unless Borrower is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of Borrower, to comply with Section 3.3(e) as though it were a Lender.
(e) Certain Pledges. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this
Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank;
provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.
(f) Joint and Several Liability. All Obligations which are incurred by two or more Restricted Persons shall be their joint and several
obligations and liabilities.
Section 10.6. Confidentiality. Each Lender Party agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, members, directors, officers, employees,
agents, fund participants, rating agencies, advisors (including attorneys, accountants, consultants, and investment bankers) and other
representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent
required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other
Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same
as those of this Section, to any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations
under this Agreement, (g) with the consent of Borrower or Parent, or (h) to the extent such Information (x) becomes publicly available other
than as a result of a breach of this Section or (y) becomes available to Administrative Agent, any Lender, or any of their respective Affiliates
on a nonconfidential basis from a source other than a Restricted Person.
For purposes of this Section, “Information” means all information received from Parent or any of its Subsidiaries relating to Parent or any
of its Subsidiaries or any of their respective businesses, other than any such information that is available to any Lender Party on a
nonconfidential basis prior to disclosure by Parent or any of its Subsidiaries, provided that, in the case of information received from Parent or
any of its Subsidiaries after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own
confidential information.
64 CREDIT AGREEMENT
Section 10.7. Governing Law; Submission to Process.

(a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF MINNESOTA.
(b) SUBMISSION TO JURISDICTION. PARENT, BORROWER AND EACH OTHER RESTRICTED PERSON IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES
DISTRICT COURT OF THE DISTRICT OF MINNESOTA AND TO THE EXTENT THAT SUCH UNITED STATES DISTRICT COURT
DOES NOT HAVE SUBJECT MATTER JURISDICTION TO THE COURTS OF THE STATE OF MINNESOTA SITTING IN HENNEPIN
COUNTY AND, IN EACH CASE, ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF
ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN
RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH FEDERAL COURT (TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW) OR IN SUCH MINNESOTA STATE COURT. EACH OF THE PARTIES HERETO
AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED
IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS
AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ADMINISTRATIVE AGENT OR ANY
LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT AGAINST PARENT, BORROWER OR ANY OTHER RESTRICTED PERSON OR ITS PROPERTIES IN THE
COURTS OF ANY JURISDICTION.
(c) WAIVER OF VENUE. PARENT, BORROWER AND EACH OTHER RESTRICTED PERSON IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY
NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION.
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT.
(d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER
PROVIDED FOR NOTICES IN SECTION 10.3. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO
TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.
65 CREDIT AGREEMENT
Section 10.8. Limitation on Interest. Lender Parties, Restricted Persons and the other parties to the Loan Documents intend to contract in
strict compliance with applicable usury Law from time to time in effect. In furtherance thereof such Persons stipulate and agree that none of the
terms and provisions contained in the Loan Documents shall ever be construed to create a contract to pay, for the use, forbearance or
detention of money, interest in excess of the maximum amount of interest permitted to be charged by applicable Law from time to time in effect.
Neither any Restricted Person nor any present or future guarantors, endorsers, or other Persons hereafter becoming liable for payment of any
Obligation shall ever be liable for unearned interest thereon or shall ever be required to pay interest thereon in excess of the maximum amount
that may be lawfully contracted for, charged, or received under applicable Law from time to time in effect, and the provisions of this section
shall control over all other provisions of the Loan Documents which may be in conflict or apparent conflict herewith.
Section 10.9. Severability. If any term or provision of any Loan Document shall be determined to be illegal or unenforceable all other
terms and provisions of the Loan Documents shall nevertheless remain effective and shall be enforced to the fullest extent permitted by
applicable Law.
Section 10.10. Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto
in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents, and any separate letter agreements with respect to fees payable to Administrative Agent,
constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.1, this Agreement shall become effective
when it shall have been executed by Administrative Agent and when Administrative Agent shall have received counterparts hereof that, when
taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this
Agreement by email transmission of a PDF copy thereof or telecopy shall be effective as delivery of a manually executed counterpart of this
Agreement.
Section 10.11. Waiver of Jury Trial, Punitive Damages, etc. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, (A) ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY), AND (B) ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LEGAL PROCEEDING ANY “SPECIAL
DAMAGES,” AS DEFINED BELOW. EACH PARTY HERETO (X) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT
OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (Y) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND
66 CREDIT AGREEMENT
CERTIFICATIONS CONTAINED IN THIS SECTION. AS USED IN THIS SECTION, “SPECIAL DAMAGES” INCLUDES ALL SPECIAL,
CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES (REGARDLESS OF HOW NAMED), BUT DOES NOT INCLUDE ANY
PAYMENTS OR FUNDS WHICH ANY PARTY HERETO HAS EXPRESSLY PROMISED TO PAY OR DELIVER TO ANY OTHER PARTY
HERETO.
Section 10.12. USA PATRIOT Act Notice. Each Lender Party (for itself and not on behalf of any other Lender Party) that is subject to the
USA Patriot Act hereby notifies Borrower and each Guarantor that pursuant to the requirements of the USA Patriot Act, it is required to
obtain, verify and record information that identifies Borrower and each Guarantor, which information includes the name and address of
Borrower and each Guarantor and other information that will allow such Lender Party, as applicable, to identify Borrower and each Guarantor in
accordance with the USA Patriot Act.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
67 CREDIT AGREEMENT
IN WITNESS WHEREOF, this Agreement is executed as of the date first written above.

Borrower

Michael A. Gerlich
Secretary and Treasurer

Parent

Michael A. Gerlich
Vice President and Chief Financial Officer
CREDIT AGREEMENT
WAYZATA INVESTMENT PARTNERS LLC,

Administrative Agent
By: /s/ Blake Carlson

Blake Carlson
Authorized Signatory
WAYZATA OPPORTUNITIES FUND, LLC,

Lender
By: Wayzata Investment Partners LLC, its Manager
By: /s/ Blake Carlson

Blake Carlson
Authorized Signatory
CREDIT AGREEMENT
EXHIBIT A
PROMISSORY NOTE
$ Wayzata, Minnesota February [ ], 2009
FOR VALUE RECEIVED, the undersigned, Gastar Exploration USA, Inc., a Michigan corporation (“Borrower”), hereby promises to pay to
the order of (“Lender”), the principal sum of Dollars ($ ), or, if greater or less, the aggregate unpaid
principal amount of the Loans made by Lender to Borrower pursuant to the terms of the Credit Agreement (as hereinafter defined), together
with interest on the unpaid principal balance thereof as set forth in the Credit Agreement, both principal and interest payable as herein
provided in lawful money of the United States of America at the offices of Administrative Agent under the Credit Agreement, 701 East Lake
Street, Suite 300, Wayzata, Minnesota 55391, or at such other place as from time to time may be designated by the holder of this Note.
This Note (a) is issued and delivered under that certain Credit Agreement dated February 16, 2009 among Borrower, Gastar Exploration
Ltd., an Alberta, Canada corporation, Wayzata Investment Partners LLC, as Administrative Agent, and the lenders (including Lender) referred
to therein (as from time to time amended, supplemented, restated or otherwise modified, the “Credit Agreement”), and is a “Note” as defined
therein, (b) is subject to the terms and provisions of the Credit Agreement, which contains provisions for payments and prepayments
hereunder and acceleration of the maturity hereof upon the happening of certain stated events, and (c) is secured by and entitled to the
benefits of certain Security Documents (as identified and defined in the Credit Agreement). Payments on this Note shall be made and applied
as provided in the Credit Agreement. Reference is hereby made to the Credit Agreement for a description of certain rights, limitations of rights,
obligations and duties of the parties hereto and for the meanings assigned to terms used and not defined herein and to the Security
Documents for a description of the nature and extent of the security thereby provided and the rights of the parties thereto.
The principal amount of this Note, together with all interest accrued hereon, shall be due and payable in full on the Maturity Date.
Notwithstanding the foregoing paragraph and all other provisions of this Note, in no event shall the interest payable hereon, whether
before or after maturity, exceed the maximum interest which, under applicable Law, may be contracted for, charged, or received on this Note,
and this Note is expressly made subject to the provisions of the Credit Agreement which more fully sets out the limitations on how interest
accrues hereon.
If this Note is placed in the hands of an attorney for collection after default, or if all or any part of the indebtedness represented hereby is
proved, established or collected in any court or in any bankruptcy, receivership, debtor relief, probate or other court proceedings, Borrower
and all endorsers, sureties and guarantors of this Note jointly and severally agree to pay reasonable attorneys’ fees and collection costs to the
holder hereof in addition to the principal and interest payable hereunder.
CREDIT AGREEMENT
Borrower and all endorsers, sureties and guarantors of this Note hereby severally waive demand, presentment, notice of demand and of
dishonor and nonpayment of this Note, protest, notice of protest, notice of intention to accelerate the maturity of this Note, declaration or
notice of acceleration of the maturity of this Note, diligence in collecting, the bringing of any suit against any party and any notice of or
defense on account of any extensions, renewals, partial payments or changes in any manner of or in this Note or in any of its terms, provisions
and covenants, or any releases or substitutions of any security, or any delay, indulgence or other act of any trustee or any holder hereof,
whether before or after maturity.
This Note and the rights and duties of the parties hereto shall be governed by the Laws of the State of Minnesota (without regard to
principles of conflicts of law), except to the extent the same are governed by applicable federal Law.
By:
Name:
Title:
Exhibit A – Page 2 [CREDIT AGREEMENT]

EXHIBIT B
BORROWING NOTICE
Reference is made to that certain Credit Agreement dated as of February 16, 2009 (as amended or supplemented, the “Agreement”), by
and among Gastar Exploration USA, Inc. (“Borrower”), Gastar Exploration Ltd., Wayzata Investment Partners LLC, as Administrative Agent,
and certain financial institutions (“Lenders”). Terms which are defined in the Agreement are used herein with the meanings given them in the
Agreement. Borrower hereby requests a Borrowing of new Loans to be advanced pursuant to Section 2.1 of the Agreement as follows:
Aggregate amount of Borrowing: $
Date on which Loans are to be advanced:
To induce Lenders to make such Loans, Borrower hereby represents, warrants, acknowledges, and agrees to and with Administrative
Agent and each Lender that:
(a) The officer of Borrower signing this instrument is the duly elected, qualified and acting officer of Borrower as indicated below such
officer’s signature hereto having all necessary authority to act for Borrower in making the request herein contained.
(b) There does not exist on the date hereof any condition or event which constitutes a Default which has not been waived in writing as
provided in Section 10.1(a) of the Agreement; nor will any such Default exist upon Borrower’s receipt and application of the Loans requested
hereby. Borrower will use the Loans hereby requested in compliance with Section 2.3 of the Agreement.
The officer of Borrower signing this instrument hereby certifies that, to the best of his knowledge after due inquiry, the above
representations, warranties, acknowledgments, and agreements of Borrower are true, correct and complete.
IN WITNESS WHEREOF, this instrument is executed as of , 20 .
By:
Name:
Title:
CREDIT AGREEMENT
EXHIBIT C
FORM OF COMPLIANCE CERTIFICATE
[Date]
Wayzata Investment Partners LLC

701 East Lake Street, Suite 300
Wayzata, Minnesota 55391
Re: Credit Agreement dated as of February 16, 2009 by and among Gastar Exploration USA, Inc., Gastar Exploration Ltd., Wayzata
Investment Partners LLC, as Administrative Agent, and the lenders signatory thereto or bound thereby from time to time (as amended,
supplemented, restated or otherwise modified from time to time, the “Credit Agreement”)
Ladies and Gentlemen:
Pursuant to applicable requirements of the Credit Agreement, the undersigned individual, as a Responsible Officer of the Parent, hereby
certifies to you the following information as true and correct as of the date hereof or for the period indicated, as the case may be:
1. [To the best of the knowledge of the undersigned, no Event of Default exists as of the date hereof or has occurred since the date of
our previous certification to you, if any.]
2. [To the best of the knowledge of the undersigned, the following Events of Default exist as of the date hereof or have occurred since
the date of our previous certification to you, if any, and the actions set forth below are being taken to remedy such circumstances:]
3. The compliance of the Parent, on a consolidated basis with its consolidated Subsidiaries, with the financial covenants of the Credit
Agreement, as of the close of business on , is evidenced by the following:
(a) Section 7.14: Current Ratio
Re qu ire d Actu al
Not less than 1.00 to 1.00 to 1.00
(b) Section 7.15: Total Net Indebtedness to EBITDA Ratio
Re qu ire d Actu al
Not more than to 1.0 to 1.0
CREDIT AGREEMENT
(c) Section 7.16: General and Administrative Expense
Re qu ire d Actu al
No more than 25% of oil and gas revenues, adjusted $
Each capitalized term used but not defined herein shall have the meaning assigned to such term in the Credit Agreement.
Very truly yours,
of
Gastar Exploration Ltd.
Exhibit C – Page 2 [CREDIT AGREEMENT]

EXHIBIT D
ASSIGNMENT AND ASSUMPTION
This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered
into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but
not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto
are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.
For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably
purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement,
as of the Effective Date inserted by Administrative Agent as contemplated below (i) all of the Assignor’s rights and obligations as a Lender
under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below (including, without limitation, any letters of credit included in such facilities) and (ii) to the extent
permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a
Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or
instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing,
including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to
the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses
(i) and (ii) above being referred to herein collectively as the “Assigned Interest”). Such sale and assignment is without recourse to the
Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.
1. Assignor:
2. Assignee:
[and is an Affiliate/Approved Fund of [identify Lender] ]
3. Borrower: GASTAR EXPLORATION USA, INC.
4. Administrative Agent: WAYZATA INVESTMENT PARTNERS, LLC, as the administrative agent under the Credit Agreement
5. Credit Agreement: The Credit Agreement dated as of February 16, 2009 among Gastar Exploration USA, Inc., Gastar Exploration Ltd., the
Lenders from time to time party thereto, Wayzata Investment Partners, LLC, as Administrative Agent and the other agents parties thereto.
CREDIT AGREEMENT
6. Assigned Interest:
Aggre gate Am ou n t
of Am ou n t of Pe rce n tage
Facility C om m itm e n t/Loans C om m itm e n t/Loans Assigne d of C US IP
Assigne d for all Le n de rs Assigne d C om m itm e n t/Loans Nu m be r
$ $ %
$ $ %
$ $ %
7. [Trade Date: ]
Page 2 CREDIT AGREEMENT

Effective Date: , 20 [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF
RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]
The terms set forth in this Assignment and Assumption are hereby agreed to:
ASSIGNOR
[NAME OF ASSIGNOR]
By:
Name:
Title:
ASSIGNEE
[NAME OF ASSIGNEE]
By:
Name:
Title:
[Consented to and] Accepted:
WAYZATA INVESTMENT PARTNERS, LLC, as

Administrative Agent
By:
Name:
Title:

ANNEX 1 to Assignment and Assumption
STANDARD TERMS AND CONDITIONS

FOR ASSIGNMENT AND ASSUMPTION
1. Representations and Warranties.
1.1. Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all
action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and
(b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit
Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii) the financial condition of Borrower, any Guarantor or any of their Affiliates or any other Person
obligated in respect of any Loan Document or (iv) the performance or observance by Borrower, any Guarantor or any of their Affiliates or any
other Person of any of their respective obligations under any Loan Document.
1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender
under the Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit Agreement (subject to receipt of such
consents as may be required under the Credit Agreement) as a Lender thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial
statements delivered pursuant to Section 6.2 thereof, as applicable, and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis
of which it has made such analysis and decision independently and without reliance on Administrative Agent or any other Lender, and (v) if it
is a Foreign Lender, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of
the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on
Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance
with their terms all of the obligations that by the terms of the Loan Documents are required to be performed by it as a Lender.
2. Payments. From and after the Effective Date, Administrative Agent shall make all payments in respect of the Assigned Interest
(including payments of principal, interest, fees and other amounts) to the Assignor for amounts that have accrued to but excluding the
Effective Date and to the Assignee for amounts that have accrued from and after the Effective Date.

3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be
effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be
governed by, and construed in accordance with, the laws of the State of Minnesota.

EXHIBIT E
CLOSING CERTIFICATE
[date]
Reference is made to that certain Credit Agreement dated as of February 16, 2009 (as amended or supplemented, the “Agreement”), by
and among Gastar Exploration USA, Inc. (“Borrower”), Gastar Exploration Ltd., Wayzata Investment Partners LLC, as Administrative Agent,
and certain financial institutions (“Lenders”). Terms which are defined in the Agreement are used herein with the meanings given them in the
Agreement. The undersigned, , does hereby certify that [he/she] has made a thorough inquiry into all matters certified herein
and, based upon such inquiry, experience, and the advice of counsel, does hereby further certify that:
1. He is the duly elected, qualified, and acting sole of Borrower.
2. All representations and warranties made by any Restricted Person in any Loan Document delivered on or before the date hereof are
true in all respects on and as of the date hereof as if such representations and warranties had been made as of the date hereof, except to the
extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier
date.
3. No Default exists on the date hereof.
4. Each Restricted Person has performed and complied with all agreements and conditions required in the Loan Documents to be
performed or complied with by it on or prior to the date hereof.
5. No Material Adverse Effect has occurred to, and no event or circumstance has occurred that could reasonably be expected to cause a
Material Adverse Effect to, Borrower’s consolidated financial condition or businesses since the date of the Initial Financial Statements.
6. Attached as Exhibit A hereto is a true, correct and complete copy of the Initial Financial Statement.
IN WITNESS WHEREOF, this instrument is executed by the undersigned as of the date first written above.
Name:
Title:
CREDIT AGREEMENT
Exhibit 4.3
AMENDED AND RESTATED INTERCREDITOR AGREEMENT
dated as of
February 16, 2009

among

certain Subsidiaries of the Parent party hereto,
AMEGY BANK NATIONAL ASSOCIATION,

as First Priority Agent,
WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Second Priority Agent,
and, solely for purposes of Section 10.14,

as Amegy Agent
THIS IS THE INTERCREDITOR AGREEMENT REFERRED TO IN (A) THE INDENTURE DATED AS OF NOVEMBER 29, 2007, AS
AMENDED, SUPPLEMENTED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME, AMONG GASTAR EXPLORATION
USA, INC., CERTAIN OF ITS SUBSIDIARIES FROM TIME TO TIME PARTY THERETO, GASTAR EXPLORATION LTD. AND WELLS
FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE AND COLLATERAL AGENT, (B) THE CREDIT AGREEMENT DATED AS OF
NOVEMBER 29, 2007, AS AMENDED, SUPPLEMENTED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME, AMONG
GASTAR EXPLORATION USA, INC., CERTAIN OF ITS SUBSIDIARIES FROM TIME TO TIME PARTY THERETO, GASTAR
EXPLORATION LTD., THE LENDERS FROM TIME TO TIME PARTY THERETO AND AMEGY BANK NATIONAL ASSOCIATION, AS
AGENT, (C) THE CREDIT AGREEMENT DATED AS OF FEBRUARY 16, 2009, AS AMENDED, SUPPLEMENTED, RESTATED OR
OTHERWISE MODIFIED FROM TIME TO TIME, AMONG GASTAR EXPLORATION USA, INC., GASTAR EXPLORATION LTD.,
CERTAIN OF ITS SUBSIDIARIES FROM TIME TO TIME PARTY THERETO, THE LENDERS FROM TIME TO TIME PARTY THERETO
AND WAYZATA INVESTMENT PARTNERS LLC, AS AGENT, (D) THE OTHER LOAN DOCUMENTS REFERRED TO IN EITHER OF
SUCH CREDIT AGREEMENTS, AND (E) THE OTHER COLLATERAL AGREEMENTS REFERRED TO IN SUCH INDENTURE.
TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS 3
SECTION 1.01. Certain Defined Terms 3
SECTION 1.02. Other Defined Terms 3
SECTION 1.03. Terms Generally 10
ARTICLE II LIEN PRIORITIES 11

SECTION 2.01. Relative Priorities 11
SECTION 2.02. Prohibition on Contesting Liens 11
SECTION 2.03. No New Liens 11
SECTION 2.04. Similar Collateral 11
ARTICLE III ENFORCEMENT OF RIGHTS; MATTERS RELATING TO COLLATERAL 12

SECTION 3.01. Exercise of Rights and Remedies; Option to Purchase 12
SECTION 3.02. No Interference 14
SECTION 3.03. Rights as Unsecured Creditors 16
SECTION 3.04. Automatic Release of Second Priority Liens. 16
SECTION 3.05. Automatic Release of First Priority Liens 17
SECTION 3.06. Insurance and Condemnation Awards 17
SECTION 3.07. Notification of Release of Collateral 17
ARTICLE IV PAYMENTS 18
SECTION 4.01. Application of Proceeds 18
SECTION 4.02. Payment Over 18
SECTION 4.03. Certain Agreements with Respect to Unenforceable Liens 19
ARTICLE V BAILMENT FOR PERFECTION OF CERTAIN SECURITY INTERESTS 19
ARTICLE VI INSOLVENCY OR LIQUIDATION PROCEEDINGS 20

SECTION 6.01. Finance and Sale Matters 20
SECTION 6.02. Relief from the Automatic Stay 22
SECTION 6.03. Reorganization Securities 22
SECTION 6.04. Post-Petition Interest 22
SECTION 6.05. Certain Waivers by the Second Priority Secured Parties 22
SECTION 6.06. Certain Voting Matters 23
ARTICLE VII OTHER AGREEMENTS 23

SECTION 7.01. Matters Relating to Debt Documents 23
SECTION 7.02. Effect of Refinancing of Indebtedness under First Priority Debt Documents 23
SECTION 7.03. No Waiver by First Priority Secured Parties 24
SECTION 7.04. Reinstatement 24
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SECTION 7.05. Authorization of Collateral Agents 25

SECTION 7.06. Further Assurances 25
ARTICLE VIII REPRESENTATIONS AND WARRANTIES 25

SECTION 8.01. Representations and Warranties of Each Party 25
SECTION 8.02. Representations and Warranties of Each Collateral Agent 25
ARTICLE IX NO RELIANCE; NO LIABILITY; OBLIGATIONS ABSOLUTE 26

SECTION 9.01. No Reliance; Information 26
SECTION 9.02. No Warranties or Liability 26
SECTION 9.03. Obligations Absolute 27
ARTICLE X MISCELLANEOUS 27
SECTION 10.01. Notices 27
SECTION 10.02. Conflicts 28
SECTION 10.03. Effectiveness; Survival; Termination 28
SECTION 10.04. Severability 29
SECTION 10.05. Amendments; Waivers 29
SECTION 10.06. Postponement of Subrogation 29
SECTION 10.07. Applicable Law; Jurisdiction; Consent to Service of Process 29
SECTION 10.08. Waiver of Jury Trial 30
SECTION 10.09. Parties in Interest 30
SECTION 10.10. Specific Performance 31
SECTION 10.11. Headings 31
SECTION 10.12. Counterparts 31
SECTION 10.13. Provisions Solely to Define Relative Rights 31
SECTION 10.14. Amegy Agent Assignment 31
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AMENDED AND RESTATED INTERCREDITOR AGREEMENT (this “Agreement”) dated as of February 16, 2009 among:
(a) GASTAR EXPLORATION USA, INC., a Michigan corporation (the “Company”);
(b) GASTAR EXPLORATION LTD., an Alberta, Canada corporation (the “Parent”);
(c) the Subsidiaries of the Parent party hereto;
(d) AMEGY BANK NATIONAL ASSOCIATION, as collateral agent for the First Priority Secured Parties (as defined below) (in
such capacity, together with its successors as collateral agent, the “First Priority Agent”);
(e) WELLS FARGO BANK, NATIONAL ASSOCIATION, as collateral agent for the Second Priority Secured Parties (as defined
below) (in such capacity, together with its successors as collateral agent, the “Second Priority Agent”); and
(f) solely for purposes of Section 10.14, AMEGY BANK NATIONAL ASSOCIATION, as administrative agent under the Amegy
Debt Agreement (as defined below) (in such capacity, together with its successors as administrative agent, the “Amegy Agent”).
RECITALS
A. The Company, the Parent and certain Subsidiaries of the Parent are parties to the Credit Agreement dated as of November 29, 2007, as
amended as of the date hereof (as further amended, supplemented, restated or otherwise modified from time to time in accordance with the
terms hereof, or refinanced in accordance with Section 7.02, the “Amegy Debt Agreement”) with the lenders from time to time party thereto and
the Amegy Agent.
B. The Company and BP Corporation North America Inc. (“BP”) have entered into the ISDA Master Agreement dated as of October 29,
2007 and an amended and restated Schedule thereto dated as of March 31, 2008 (collectively, the “BP ISDA Master Agreement”), and have
entered into one or more transaction confirmations thereunder prior to the date hereof (such ISDA Master Agreement and transaction
confirmations, collectively, entered into prior to the date hereof being the “Existing BP Swap Documents”), and the Company and BP may in
the future enter into other swap obligations.
C. The Company, the Parent and certain Subsidiaries of the Parent are parties to the Indenture dated as of November 29, 2007 (as
amended as of the date hereof and as further amended, supplemented, restated or otherwise modified from time to time in accordance with the
terms hereof, the “Second Priority Debt Agreement”) with Wells Fargo Bank, National Association, as Trustee (in such capacity, together
with its successors in such capacity, the “Second Priority Trustee”), and the Second Priority Agent.
D. On or about the date hereof, the Company, the Parent, the lenders party thereto and Wayzata Investment Partners LLC, as
administrative agent (together with its successors as administrative agent, the “Wayzata Agent”) are entering into a Credit Agreement (as
amended, supplemented, restated or otherwise modified from time to time in accordance with the terms hereof, or refinanced in accordance with
Section 7.02, the “Wayzata Debt Agreement”).
E. The obligations of the Company under the Amegy Debt Agreement and the Wayzata Debt Agreement and certain other obligations
are secured by first-priority Liens pursuant to (i) the Amended and Restated First Lien Security Agreement dated as of the date hereof (the
“First Priority Security Agreement”) among the Company, certain of the Company’s Subsidiaries and the First Priority Agent, as the
successor to the Amegy Agent and (ii) certain mortgages and deeds of trust in favor of the First Priority Agent, as the successor to the
Amegy Agent (the “First Priority Mortgages”).
F. The obligations of the Company under the Second Priority Debt Agreement and certain other obligations are secured by second-
priority Liens pursuant to (i) the Second Lien Security Agreement dated as of November 29, 2007 (as amended, supplemented, restated or
otherwise modified from time to time in accordance with the terms hereof, the “ Second Priority Security Agreement”) among the Company,
certain of the Company’s Subsidiaries and the Second Priority Agent and (ii) certain mortgages and deeds of trust in favor of the Second
Priority Agent (the “Second Priority Mortgages”).
G. In connection with the Amegy Debt Agreement and the Second Priority Debt Agreement, the Amegy Agent, the Second Priority
Agent, the Company, the Parent and certain of the Parent’s Subsidiaries entered into the Intercreditor Agreement dated as of November 29,
2007 (the “Original Intercreditor Agreement”).
H. The parties desire to enter into this Agreement, amending and restating the Original Intercreditor Agreement, among other things to
provide for the lenders under the Wayzata Debt Agreement to have the benefit hereof, to provide for the assignment of the Amegy Agent’s
rights, benefits, duties and obligations hereunder to the First Priority Agent and to set forth the respective rights, benefits, duties and
obligations of the parties having the benefit of the Collateral and with respect to certain other matters.
I. The Company, the Parent and certain Subsidiaries of the Parent are parties to the Collateral Agency and Intercreditor Agreement dated
as of the date hereof (as amended, supplemented, restated or otherwise modified from time to time in accordance with the terms hereof, the
“First Lien Intercreditor Agreement”) with the First Priority Agent, the Amegy Agent, the Wayzata Agent and BP specifying the respective
rights, benefits, duties and obligations of the Amegy Secured Parties, the Wayzata Secured Parties and BP with respect to the Collateral and
this Agreement.
Accordingly, the parties hereto agree as follows:
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ARTICLE I
Definitions
SECTION 1.01. Certain Defined Terms. Capitalized terms used in this Agreement and not otherwise defined herein shall, except to the
extent the context otherwise requires, have the meanings set forth in the Second Priority Debt Agreement (as in effect on the date hereof) or
the Second Priority Security Agreement (as in effect on the date hereof), as applicable.
SECTION 1.02. Other Defined Terms. As used in the Agreement, the following terms shall have the meanings specified below:
“Agreement” shall have the meaning assigned to such term in the preamble to this Agreement.
“Amegy Agent” shall have the meaning assigned to such term in the preamble to this Agreement.
“Amegy Claims” shall mean, at any time, all Indebtedness under the Amegy Debt Agreement permitted pursuant to clause (1) of the
definition of “Permitted Debt” in Section 4.09(b) of the Second Priority Debt Agreement, and all Obligations (as defined in the Amegy Debt
Agreement) (other than principal) related to such Indebtedness and owing under the documents relating to such Indebtedness.
“Amegy Creditors” shall mean the lenders from time to time party to the Amegy Debt Agreement.
“Amegy Debt Agreement” shall have the meaning assigned to such term in Recital A.
“Amegy Debt Documents” shall mean the “Loan Documents”, as defined in the Amegy Debt Agreement.
“Amegy Secured Parties” shall mean, at any time, (a) the Amegy Creditors, (b) the Amegy Agent, (c) each other Person to which any of
the Amegy Claims is owed and (d) the successors and assigns of each of the foregoing.
“Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy,” as now and hereinafter in effect, or any
successor statute.
“Bankruptcy Law” shall mean the Bankruptcy Code and any other Federal, state or foreign bankruptcy, insolvency, receivership or
similar law.
“BP” shall have the meaning assigned to such term in Recital B.
“BP ISDA Master Agreement” shall have the meaning assigned to such term in Recital B.
“Capital Stock” shall mean:

(1) in the case of a corporation, corporate stock;
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(2) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents
(however designated) of corporate stock;
(3) in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited); and
(4) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or
distributions of assets of, another Person that has issued such interest or participation.
“Collateral” shall mean, collectively, all “Collateral”, as defined in each of the First Priority Debt Agreements or any other First Priority
Debt Document and the Second Priority Debt Agreement or any other Second Priority Debt Document.
“Collateral Agents” shall mean the First Priority Agent and the Second Priority Agent.
“Commodity Hedge Agreements” shall mean crude oil, natural gas or other hydrocarbon floor, collar, cap, price protection or hedge
agreements, including all schedules thereto and confirmations thereunder.
“Company” shall have the meaning assigned to such term in the preamble to this Agreement.
“Debt Agreements” shall mean the First Priority Debt Agreements and the Second Priority Debt Agreement.
“Debt Documents” shall mean the First Priority Debt Documents and the Second Priority Debt Documents.
“DIP Financing” shall have the meaning assigned to such term in Section 6.01(a).
“DIP Financing Liens” shall have the meaning assigned to such term in Section 6.01(a).
“Discharge of First Priority Claims” shall mean, subject to Sections 7.02 and 7.04(a), (a) payment in full in cash of the principal of and
interest (including interest accruing during the pendency of any Insolvency or Liquidation Proceeding, regardless of whether allowed or
allowable in such Insolvency or Liquidation Proceeding) and premium, if any, on all Indebtedness, outstanding under the First Priority Debt
Documents to the extent constituting First Priority Claims, (b) cancellation of or the entry into arrangements satisfactory to the First Priority
Agent and the Issuing Bank with respect to all Letters of Credit issued and outstanding under the Amegy Debt Agreement, (c) termination or
expiration of all commitments to lend and all obligations to issue or extend Letters of Credit under the Amegy Debt Agreement and (d) the
payment of all Swap Obligations owing by the Company under the Swap Agreements.
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“Discharge of Second Priority Claims” shall mean, subject to Section 7.04(b), (a) payment in full in cash of the principal of and interest
(including interest accruing during the pendency of any Insolvency or Liquidation Proceeding, regardless of whether allowed or allowable in
such Insolvency or Liquidation Proceeding) and premium, if any, on all Indebtedness outstanding under the Second Priority Debt Documents
to the extent constituting Second Priority Claims and (b) payment in full of all First Priority Claims acquired by the Second Priority Agent
and/or any of the Second Priority Secured Parties as contemplated by Section 10.06 hereof.
“Disposition” shall mean any sale, lease, exchange, transfer or other disposition. “Dispose” shall have a correlative meaning.
“Excluded Collateral” shall mean any Capital Stock of Subsidiaries, whether or not such Capital Stock is pledged to secure any First
Priority Claims.
“Existing BP Swap Documents” shall have the meaning assigned to such term in Recital B.
“Existing BP Swap Obligations” shall mean all amounts owed or to become owing by the Company to BP under the Existing BP Swap
Documents with respect to transactions thereunder in existence as of the date hereof, together with all costs and expenses, including, but not
limited to, attorneys’ fees incurred in the enforcement or collection thereof, and interest thereon after the commencement of any proceedings
under any Bankruptcy Law.
“First Lien Intercreditor Agreement” shall have the meaning assigned to such term in Recital I.
“First Priority Agent” shall have the meaning assigned to such term in the preamble to this Agreement.
“First Priority Claims” shall mean the Amegy Claims, the Wayzata Claims and the Swap Obligations.
“First Priority Collateral” shall mean all “Collateral”, as defined in the First Priority Debt Agreements or any other First Priority Debt
Document, and any other assets of any Grantor now or at any time hereafter subject to Liens which secure, but only to the extent securing,
any First Priority Claims.
“First Priority Debt Agreements” shall mean the Amegy Debt Agreement, the Wayzata Debt Agreement and the Swap Agreements.
“First Priority Debt Documents” shall mean the “Loan Documents”, as defined in each of the Amegy Debt Agreement and the Wayzata
Debt Agreement and any agreements relating to any Swap Obligations.
“First Priority Intercreditor Agreement” shall have the meaning assigned to such term in Recital I.
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“First Priority Liens” shall mean all Liens on the First Priority Collateral to the extent such Liens secure the First Priority Claims, whether
created under the First Priority Security Documents or acquired by possession, statute (including any judgment lien), operation of law,
subrogation or otherwise.
“First Priority Mortgages” shall have the meaning assigned to such term in Recital E.
“First Priority Secured Parties” shall mean, at any time, the First Priority Agent, the Amegy Secured Parties, the Wayzata Secured
Parties and BP.
“First Priority Security Agreement” shall have the meaning assigned to such term in Recital E.
“First Priority Security Documents” shall mean the First Priority Debt Agreements, the First Priority Mortgages, the First Priority
Security Agreement and any other agreement, document or instrument pursuant to which a Lien is granted by any Grantor to secure any First
Priority Claims or under which rights or remedies with respect to any such Lien are governed.
“Grantors” shall mean the Company, the Parent and each Subsidiary that shall have created or purported to create any First Priority Lien
or Second Priority Lien on all or any part of its assets to secure any First Priority Claims or any Second Priority Claims.
“Guarantors” shall mean, collectively, the Parent and each Subsidiary that shall have guaranteed any First Priority Claims or any Second
Priority Claims, whether by executing and delivering the applicable Debt Agreement, or a separate guaranty thereof, or a supplement thereto,
or otherwise.
“Indebtedness” shall mean, as to any Person, without duplication, (a) all liabilities (excluding capital, surplus, reserves for deferred
income taxes, deferred compensation liabilities, other deferred liabilities and credits and asset retirement obligations) that, in accordance with
generally accepted accounting principles established by the Financial Accounting Standards Board or the American Institute of Certified
Public Accountants and in effect in the United States from time to time, would be included in determining total liabilities as shown on the
liability side of a balance sheet, (b) all obligations of such Person evidenced by bonds, debentures, promissory notes, or similar evidences of
indebtedness, (c) all other indebtedness of such Person for borrowed money, (d) all obligations of others, to the extent any such obligation is
secured by a Lien on the assets of such Person (whether or not such Person has assumed or become liable for the obligation secured by such
Lien), (e) all direct or contingent obligations of such Person under letters of credit, banker’s acceptances and similar instruments, (f) all net
obligations of such Person under any Commodity Hedge Agreements or Interest Rate Hedge Agreements, and (g) all guaranties of any of the
foregoing.
“Insolvency or Liquidation Proceeding” shall mean (a) any voluntary or involuntary proceeding under the Bankruptcy Code or any
other Bankruptcy Law with respect to any Grantor, (b) any voluntary or involuntary appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for any Grantor or for a substantial part of the property or assets of any Grantor, (c) any voluntary
or involuntary winding-up or liquidation of any Grantor, or (d) a general assignment for the benefit of creditors by any Grantor.
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“Interest Rate Hedge Agreements” shall mean interest rate floor, collar, cap, rate protection or hedge agreements.
“Inventory” shall mean, with respect to any Grantor, all of such Grantor’s now owned or hereafter acquired right, title, and interest with
respect to inventory, including goods held for sale or lease or to be furnished under a contract of service, goods that are leased by such
Grantor as lessor, goods that are furnished by such Grantor under a contract of service, and raw materials, work in process, or materials used
or consumed in such Grantor’s business.
“Letter of Credit” shall have the meaning assigned to such term in the Amegy Debt Agreement.
“Lien” shall mean, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect
of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention
agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest in and any filing of or agreement to
give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction other than a precautionary
financing statement not intended as a security agreement.
“Liquidation Sale” shall mean a so-called bulk sale, liquidation sale or “going out of business sale” conducted either by any Secured
Party or a Grantor in respect to all or a substantial portion of such Grantor’s Collateral following the occurrence and during the continuance of
an Event of Default under, and as defined in, either the First Priority Debt Documents or Second Priority Debt Documents.
“New First Priority Agent” shall have the meaning assigned to such term in Section 7.02.
“New First Priority Claims” shall have the meaning assigned to such term in Section 7.02.
“New First Priority Debt Documents” shall have the meaning assigned to such term in Section 7.02.
“Original Intercreditor Agreement” shall have the meaning assigned to such term in Recital G.
“Parent” shall have the meaning assigned to such term in the preamble to this Agreement.
“Person” shall mean an individual, corporation, partnership, limited liability company, trust, unincorporated organization, government,
any agency or political subdivision of any government, or any other form of entity.
“Pledged or Controlled Collateral” shall have the meaning assigned to such term in Article V.
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“Refinance” shall mean, in respect of any Indebtedness, to refinance, extend, renew, restructure (including by the amendment and
restatement of any instrument or agreement evidencing such Indebtedness) or replace or to issue other Indebtedness in exchange or
replacement for, such Indebtedness, in whole or in part. “Refinanced” and “Refinancing” shall have correlative meanings.
“Refinancing Notice” shall have the meaning assigned to such term in Section 7.02.
“Release” shall have the meaning assigned to such term in Section 3.04.
“Second Priority Agent” shall have the meaning assigned to such term in the preamble to this Agreement.
“Second Priority Claims” shall mean the obligations of the Company and the Guarantors under or with respect to (a) the Second Priority
Debt Agreement, (b) the promissory notes from time to time issued under the Second Priority Debt Agreement, (c) any guaranty by a
Guarantor of the Second Priority Debt Agreement or such promissory notes, or (d) any other Second Priority Debt Document.
“Second Priority Collateral” shall mean all “Collateral”, as defined in any Second Priority Debt Document, and any other assets of any
Grantor now or at any time hereafter subject to Liens which secure, but only to the extent securing, any Second Priority Claims.
“Second Priority Creditors” shall mean the “Holders”, as defined in the Second Priority Debt Agreement.
“Second Priority Debt Agreement” shall have the meaning assigned to such term in Recital C.
“Second Priority Debt Documents” shall mean the “Indenture Documents”, as defined in the Second Priority Debt Agreement.
“Second Priority Liens” shall mean all Liens on the Second Priority Collateral securing the Second Priority Claims, whether created
under the Second Priority Security Documents or acquired by possession, statute (including any judgment lien), operation of law, subrogation
or otherwise.
“Second Priority Mortgages” shall have the meaning assigned to such term in Recital F.
“Second Priority Permitted Actions” shall have the meaning assigned to such term in Section 3.01(a).
“Second Priority Release” shall have the meaning assigned to such term in Section 3.05.
“Second Priority Secured Parties” shall mean, at any time, (a) the Second Priority Creditors, (b) the Second Priority Trustee, (c) the
Second Priority Agent, (d) each other Person to whom any of the Second Priority Claims (including indemnification obligations) is owed and
(e) the successors and assigns of each of the foregoing.
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“Second Priority Security Agreement” shall have the meaning assigned to such term in Recital F.
“Second Priority Security Documents” shall mean the “Collateral Agreements”, as defined in the Second Priority Debt Agreement,
including the Second Priority Mortgages and the Second Priority Security Agreement, and any other agreement, document or instrument
pursuant to which a Lien is granted by any Grantor to secure any Second Priority Claims or under which rights or remedies with respect to any
such Lien are governed.
“Second Priority Trustee” shall have the meaning assigned to such term in Recital C.
“Secured Parties” shall mean, as the context may require, the First Priority Secured Parties and/or the Second Priority Secured Parties.
“Security Documents” shall mean the First Priority Security Documents and the Second Priority Security Documents.
“Standstill Period” shall have the meaning assigned to such term in Section 3.02(a).
“Subsidiary” shall mean:

(a) any corporation, association or other business entity (other than a partnership) of which more than 50% of the total voting
power (without regard to the occurrence of any contingency) of Capital Stock is at the time owned or controlled, directly or through
another Subsidiary, by Parent or one or more of the other Subsidiaries of Parent (or a combination thereof); and
(b) any partnership (i) the sole general partner or the managing general partner of which is Parent or a Subsidiary of Parent, (ii) the
only general partners of which are Parent or one or more Subsidiaries of Parent (or any combination thereof), or (iii) as to which Parent
and its Subsidiaries are entitled to receive more than 50% of the assets of such partnership upon its dissolution.
“Swap Agreements” shall mean, collectively, the Existing BP Swap Documents and all other Commodity Hedge Agreements that are
entered into between the Company and BP.
“Swap Obligations” shall mean, collectively:

(a) the Existing BP Swap Obligations, and
(b) all other amounts owed by the Company to BP under any other Swap Agreement (including under confirmations entered into on
and after the date hereof under the BP ISDA Master Agreement), together with all costs, expenses, including, but not limited to,
attorneys’ fees incurred in the enforcement or collection thereof, and interest thereon after the commencement of any proceedings under
any Bankruptcy Laws, but in each case excluding any obligation not permitted under both Debt Agreements on which the Swap
Agreement under which such Swap Obligations arise is entered into.
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“Uniform Commercial Code” or “UCC” shall mean the Uniform Commercial Code (or any similar or equivalent legislation) as in effect
from time to time in any applicable jurisdiction.
“Wayzata Agent” shall have the meaning assigned to such term in Recital D.
“Wayzata Claims” shall mean, at any time, all Indebtedness under the Wayzata Debt Agreement permitted pursuant to clause (1) of the
definition of “Permitted Debt” in Section 4.09(b) of the Second Priority Debt Agreement, and all Obligations (as defined in the Wayzata Debt
Agreement) (other than principal) related to such Indebtedness and owing under the documents relating to such Indebtedness.
“Wayzata Creditors” shall mean the lenders from time to time party to the Wayzata Debt Agreement.
“Wayzata Debt Agreement” shall have the meaning assigned to such term in Recital D.
“Wayzata Debt Documents” shall mean the “Loan Documents”, as defined in the Wayzata Debt Agreement.
“Wayzata Secured Parties” shall mean, at any time, (a) the Wayzata Creditors, (b) the Wayzata Agent, (c) each other Person to which
any of the Wayzata Claims is owed and (d) the successors and assigns of each of the foregoing.
SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The word “will” shall be construed to have the
same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time
amended, restated, supplemented or otherwise modified,, to the extent the same is not prohibited hereby (b) any reference herein (i) to any
Person shall be construed to include such Person’s successors and assigns and (ii) to the Company or any other Grantor shall be construed to
include the Company or such Grantor as debtor and debtor-in-possession and any receiver or trustee for the Company or any other Grantor, as
the case may be, in any Insolvency or Liquidation Proceeding or Liquidation Sale, (c) the words “herein”, “hereof” and “hereunder”, and
words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references
herein to Articles or Sections shall be construed to refer to Articles or Sections of this Agreement and (e) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including
cash, securities, accounts and contract rights.
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ARTICLE II
Lien Priorities
SECTION 2.01. Relative Priorities. Notwithstanding the date, manner or order of grant, attachment or perfection of any Second Priority
Lien or any First Priority Lien, and notwithstanding any provision of the UCC or any other applicable law or the provisions of any Security
Document or any other Debt Document or any other circumstance whatsoever, each Collateral Agent, for itself and on behalf of the Secured
Parties on whose behalf it acts in such capacity therefor, hereby agrees that so long as the Discharge of First Priority Claims has not occurred,
(i) any First Priority Lien on any Collateral now or hereafter held by or for the benefit of any First Priority Secured Party shall be senior in right,
priority, operation, effect and all other respects to any and all Second Priority Liens on any Collateral and (ii) any Second Priority Lien on any
Collateral now or hereafter held by or for the benefit of any Second Priority Secured Party shall be junior and subordinate in right, priority,
operation, effect and all other respects to any and all First Priority Liens on any Collateral.
SECTION 2.02. Prohibition on Contesting Liens. Each Collateral Agent, for itself and on behalf of the other Secured Parties on whose
behalf it acts in such capacity therefor, agrees that it will not, and hereby waives any right to, contest or support any other Person in
contesting, in any proceeding (including any Insolvency or Liquidation Proceeding), the priority, validity or enforceability of any Second
Priority Lien or any First Priority Lien, as the case may be; provided that nothing in this Agreement shall be construed to prevent or impair the
rights of either Collateral Agent or any other Secured Party to enforce this Agreement to the extent provided hereby.
SECTION 2.03. No New Liens. The parties hereto agree that, so long as the Discharge of First Priority Claims has not occurred, none of
the Grantors shall, nor shall any Grantor permit any of its Subsidiaries to, (i) grant or permit any additional Liens on any asset of a Grantor to
secure any Second Priority Claim unless it has granted, or substantially concurrently therewith grants, a Lien on such asset of such Grantor to
secure the First Priority Claims or (ii) grant or permit any additional Liens on any asset of a Grantor (other than Excluded Collateral) to secure
any First Priority Claims unless it has granted, or substantially concurrently therewith grants, a Lien on such asset of a Grantor to secure the
Second Priority Claims, with each such Lien to be subject to the provisions of this Agreement. To the extent that the provisions of the
immediately preceding sentence are not complied with for any reason, without limiting any other right or remedy available to the First Priority
Agent or the other First Priority Secured Parties, the Second Priority Agent agrees, for itself and on behalf of the other Second Priority Secured
Parties, that any amounts received by or distributed to any Second Priority Secured Party pursuant to or as a result of any Lien granted in
contravention of this Section 2.03 shall be subject to Section 4.02.
SECTION 2.04. Similar Collateral. The parties hereto acknowledge and agree that it is their intention that the First Priority Collateral and
the Second Priority Collateral be identical, except that only the First Priority Collateral will include the Excluded Collateral. In furtherance of the
foregoing, the parties hereto agree to cooperate in good faith in order to determine, upon any reasonable request by the First Priority Agent or
the Second Priority Agent, the specific
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assets included in the First Priority Collateral and the Second Priority Collateral, the steps taken to perfect the First Priority Liens and the
Second Priority Liens thereon and the identity of the respective parties obligated under the First Priority Debt Documents and the Second
Priority Debt Documents in respect of the First Priority Claims and the Second Priority Claims, respectively.
ARTICLE III
Enforcement of Rights; Matters Relating to Collateral
SECTION 3.01. Exercise of Rights and Remedies; Option to Purchase. (a) So long as the Discharge of First Priority Claims has not
occurred, whether or not any Insolvency or Liquidation Proceeding or Liquidation Sale has been commenced, the First Priority Agent and the
other First Priority Secured Parties shall have the exclusive right to enforce rights and exercise remedies (including any right of setoff) with
respect to the Collateral (including making determinations regarding the release, Disposition or restrictions with respect to the Collateral), or to
commence or seek to commence any action or proceeding with respect to such rights or remedies (including any foreclosure action or
proceeding or any Insolvency or Liquidation Proceeding or Liquidation Sale), in each case, without any consultation with or the consent of
the Second Priority Agent or any other Second Priority Secured Party; provided that, notwithstanding the foregoing, (i) in any Insolvency or
Liquidation Proceeding, the Second Priority Agent may file a proof of claim or statement of interest with respect to the Second Priority Claims;
(ii) the Second Priority Agent may take any action to preserve or protect the validity and enforceability of the Second Priority Liens, provided
that no such action is (A) adverse to the First Priority Liens or the rights of the First Priority Agent or any other First Priority Secured Party to
exercise remedies in respect thereof or (B) otherwise inconsistent with the terms of this Agreement, including the automatic release of Second
Priority Liens provided in Section 3.04; (iii) the Second Priority Secured Parties may file any responsive or defensive pleadings in opposition to
any motion, claim, adversary proceeding or other pleading made by any Person objecting to or otherwise seeking the disallowance of the
claims of the Second Priority Secured Parties, including any claims secured by the Collateral or otherwise make any agreements or file any
motions pertaining to the Second Priority Claims, in each case, to the extent not inconsistent with the terms of this Agreement; (iv) the Second
Priority Secured Parties may exercise rights and remedies as unsecured creditors, as provided in Section 3.03(a); and (v) subject to
Section 3.02, the Second Priority Agent and the other Second Priority Secured Parties may enforce any of their rights and exercise any of their
remedies with respect to the Collateral after the termination of the Standstill Period (the actions described in this proviso being referred to
herein as the “Second Priority Permitted Actions”). Except for the Second Priority Permitted Actions, unless and until the Discharge of First
Priority Claims has occurred, the sole right of the Second Priority Agent and the other Second Priority Secured Parties with respect to the
Collateral shall be to receive the proceeds of the Collateral, if any, remaining after the Discharge of First Priority Claims has occurred and in
accordance with the Second Priority Debt Documents and applicable law.
(b) In exercising rights and remedies with respect to the Collateral, the First Priority Agent and the other First Priority Secured
Parties may enforce the provisions of the First Priority Debt Documents and exercise remedies thereunder, all in such order and in such manner
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as they may determine in their sole discretion. Such exercise and enforcement shall include the rights of an agent appointed by them to
Dispose of Collateral upon foreclosure, to incur expenses in connection with any such Disposition and to exercise all the rights and remedies
of a secured creditor under the Uniform Commercial Code, the Bankruptcy Code or any other Bankruptcy Law. The First Priority Agent agrees
to provide at least ten Business Days’ prior written notice to the Second Priority Agent of its intention to foreclose upon or Dispose of any
Collateral; provided, however, that the failure to give any such notice shall not in any way limit its ability to foreclose upon or Dispose of any
Collateral.
(c) The Second Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, hereby acknowledges and
agrees that no covenant, agreement or restriction contained in any Second Priority Security Document or any other Second Priority Debt
Document shall be deemed to restrict in any way the rights and remedies of the First Priority Agent or the other First Priority Secured Parties
with respect to the Collateral as set forth in this Agreement and the other First Priority Debt Documents.
(d) Notwithstanding anything in this Agreement to the contrary, following the acceleration of the Indebtedness then outstanding
under both the Amegy Debt Agreement and the Wayzata Debt Agreement, the Second Priority Secured Parties may (but shall not be obligated
to), at their sole expense and effort, upon notice to the Company and the First Priority Agent, require the First Priority Secured Parties to
transfer and assign to the Second Priority Secured Parties, without warranty or representation or recourse, all (but not less than all) of the First
Priority Claims; provided that (x) such assignment shall not conflict with any law, rule or regulation or order of any court or other
Governmental Authority having jurisdiction, and (y) the Second Priority Secured Parties shall have paid to the First Priority Agent, for the
account of the First Priority Secured Parties, in immediately available funds, an amount equal to 100% of the principal of such Indebtedness
plus all accrued and unpaid interest thereon plus all accrued and unpaid fees plus all the other First Priority Claims then outstanding (which
shall include, with respect to (i) the aggregate face amount of the Letters of Credit outstanding under the First Priority Debt Documents,
posting cash collateral in an amount equal to 105% thereof, and (ii) each commodity or interest rate hedging, cap, collar, swap or other similar
agreement that evidences any Hedging Obligations included in such First Priority Claims, 100% of the aggregate amount of such First Priority
Claims, after giving effect to any netting arrangements, that the applicable Grantor would be required to pay if such commodity or interest rate
hedging, cap, collar, swap or other similar agreements were terminated at such time, calculated using the market quotation method. In order to
effectuate the foregoing, the First Priority Agent shall calculate, upon the written request of the Second Priority Agent from time to time, the
amount in cash that would be necessary so to purchase the First Priority Claims. If the right set forth in this Section 3.01(d) is exercised, the
parties shall endeavor to close promptly thereafter but in any event within ten Business Days of the request set forth in the first sentence of
this Section 3.01(d). If the Second Priority Secured Parties exercise the right set forth in this Section 3.01(d), it shall be exercised pursuant to
documentation mutually acceptable to each of the First Priority Agent and the Second Priority Agent.
(e) In exercising rights and remedies with respect to the Collateral, the Second Priority Agent may enforce the provisions of the
Second Priority Debt Documents and exercise remedies thereunder, all in such order and in such manner as it may determine in its sole
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discretion, in each case, to the extent that such enforcement or exercise is not otherwise prohibited by clauses (a) through (d) of this
Section 3.01. Such exercise and enforcement shall, in each case, to the extent that such enforcement or exercise is not otherwise prohibited by
clauses (a) through (d) of this Section 3.01, include the rights of an agent appointed by it to Dispose of Collateral upon foreclosure, to incur
expenses in connection with any such Disposition and to exercise all the rights and remedies of a secured creditor under the Uniform
Commercial Code, the Bankruptcy Code or any other Bankruptcy Law. The Second Priority Agent agrees to provide at least ten Business
Days’ prior written notice to the First Priority Agent of its intention to foreclose upon or Dispose of any Collateral; provided, however, that
the failure to give any such notice shall not in any way limit its ability to foreclose upon or Dispose of any Collateral to the extent that such
foreclosure is not otherwise prohibited by clauses (a) through (d) of this Section 3.01.
SECTION 3.02. No Interference. The Second Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, agrees
that, whether or not any Insolvency or Liquidation Proceeding or Liquidation Sale has been commenced, the Second Priority Secured Parties:
(a) except for Second Priority Permitted Actions, will not, so long as the Discharge of First Priority Claims has not occurred,
(A) enforce or exercise, or seek to enforce or exercise, any rights or remedies (including any right of setoff) with respect to any Collateral
(including the enforcement of any right under any account control agreement, landlord waiver or bailee’s letter or any similar agreement or
arrangement to which the Second Priority Agent or any other Second Priority Secured Party is a party) or (B) commence or join with any
Person (other than the First Priority Agent) in commencing, or petition for or vote in favor of any resolution for, any action or proceeding with
respect to such rights or remedies (including any foreclosure action); provided, however, that the Second Priority Agent may enforce or
exercise any or all such rights and remedies, or commence, join with any Person in commencing, or petition for or vote in favor of any
resolution for, any such action or proceeding, after a period of 90 days has elapsed (which period shall be tolled during any period in which
the First Priority Agent shall not be entitled to enforce or exercise any rights or remedies with respect to any Collateral as a result of (x) any
injunction issued by a court of competent jurisdiction or (y) the automatic stay or any other stay in any Insolvency or Liquidation Proceeding)
since the date on which the Second Priority Agent has delivered to the First Priority Agent written notice of the acceleration of the
Indebtedness then outstanding under the Second Priority Debt Agreement (the “Standstill Period”); provided further, however, that
(1) notwithstanding the expiration of the Standstill Period or anything herein to the contrary, in no event shall the Second Priority Agent or
any other Second Priority Secured Party enforce or exercise any rights or remedies with respect to any Collateral, or commence, join with any
Person at any time in commencing, or petition for or vote in favor of any resolution for, any such action or proceeding, if the First Priority
Agent or any other First Priority Secured Party shall have commenced, and shall be diligently pursuing (or shall have sought or requested
relief from or modification of the automatic stay or any other stay in any Insolvency or Liquidation Proceeding to enable the commencement
and pursuit thereof), the enforcement or exercise of any rights or remedies with respect to any material portion of the Collateral or any such
action or proceeding (prompt written notice thereof to be given to the Second Priority Agent by the First Priority Agent) and (2) after the
expiration of the Standstill Period, so long as neither the First Priority Agent nor the First
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Priority Secured Parties have commenced any action to enforce their Lien on any material portion of the Collateral, in the event that and for so
long as the Second Priority Secured Parties (or the Second Priority Agent on their behalf) have commenced any actions to enforce their Liens
with respect to any material portion of the Collateral to the extent permitted hereunder and are diligently pursuing such actions, neither the
First Priority Secured Parties nor the First Priority Agent shall take any action of a similar nature with respect to such Collateral; provided that
all other provisions of this Intercreditor Agreement (including the turnover provisions of Article IV) are complied with;
(b) will not contest, protest or object to any foreclosure action or proceeding brought by the First Priority Agent or any other First
Priority Secured Party, or any other enforcement or exercise by any First Priority Secured Party of any rights or remedies relating to the
Collateral under the First Priority Debt Documents or an Insolvency or Liquidation Proceeding or in connection with a Liquidation Sale or
otherwise, so long as Second Priority Liens attach to the proceeds thereof subject to the relative priorities set forth in Section 2.01(a);
(c) subject to the rights of the Second Priority Secured Parties under clause (i) above, will not object to the forbearance by the First
Priority Agent or any other First Priority Secured Party from commencing or pursuing any foreclosure action or proceeding or any other
enforcement or exercise of any rights or remedies with respect to the Collateral;
(d) will not, so long as the Discharge of First Priority Claims has not occurred and except for Second Priority Permitted Actions,
take or receive any Collateral, or any proceeds thereof or payment with respect thereto, in connection with the exercise of any right or
enforcement of any remedy (including any right of setoff) with respect to any Collateral or in connection with any insurance policy award
under a policy of insurance relating to any Collateral or any condemnation award (or deed in lieu of condemnation) relating to any Collateral;
(e) will not, except for Second Priority Permitted Actions, take any action that would, or could reasonably be expected to, hinder, in
any manner, any exercise of remedies under the First Priority Debt Documents, including any Disposition of any Collateral, whether by
foreclosure or otherwise;
(f) will not, except for Second Priority Permitted Actions, object to the manner in which the First Priority Agent or any other First
Priority Secured Party may seek to enforce or collect the First Priority Claims or the First Priority Liens, regardless of whether any action or
failure to act by or on behalf of the First Priority Agent or any other First Priority Secured Party is, or could be, adverse to the interests of the
Second Priority Secured Parties, and will not assert, and hereby waive, to the fullest extent permitted by law, any right to demand, request,
plead or otherwise assert or claim the benefit of any marshalling, appraisal, valuation or other similar right that may be available under
applicable law with respect to the Collateral or any similar rights a junior secured creditor may have under applicable law; and
(g) will not attempt, directly or indirectly, whether by judicial proceeding or otherwise, to challenge or question the validity or
enforceability of any First Priority Claim or any First Priority Security Document, including this Agreement, or the validity or enforceability of
the priorities, rights or obligations established by this Agreement.
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SECTION 3.03. Rights as Unsecured Creditors. The Second Priority Agent and the other Second Priority Secured Parties may, in
accordance with the terms of the Second Priority Debt Documents and applicable law, enforce rights and exercise remedies against any Grantor
as unsecured creditors; provided that no such action is otherwise inconsistent with the terms of this Agreement. Without limiting the
generality of the foregoing sentence, the Second Priority Secured Parties shall be entitled to prosecute litigation against any Grantor or any
other Person liable in respect of the Second Priority Claims, notwithstanding whether any Standstill Period is then in effect, but shall be
prohibited from taking any action to enforce any judgment until the lapse of any applicable Standstill Period. Nothing in this Agreement shall
prohibit the receipt by the Second Priority Agent or any other Second Priority Secured Party of the required payments of principal, premium,
interest, fees and other amounts due under the Second Priority Debt Documents so long as such receipt is not the direct or indirect result of
the enforcement or exercise by the Second Priority Agent or any other Second Priority Secured Party of rights or remedies in contravention of
this Agreement as a secured creditor (including any right of setoff) against Collateral or enforcement in contravention of this Agreement of
any Second Priority Lien against Collateral (including any judgment lien resulting from the exercise of remedies available to an unsecured
creditor).
SECTION 3.04. Automatic Release of Second Priority Liens.

(a) If, in connection with (i) any Disposition of any Collateral permitted under the terms of the First Priority Debt Documents or
(ii) the enforcement or exercise of any rights or remedies with respect to the Collateral, including any Disposition of Collateral, the First Priority
Agent, for itself and on behalf of the other First Priority Secured Parties, (x) releases any of the First Priority Liens, or (y) releases any
Guarantor (other than the Parent) from its obligations under its guarantee of the First Priority Claims (in each case, a “Release”), other than any
such Release granted following (and not as a condition to) the Discharge of First Priority Claims, then the Second Priority Liens on such
Collateral, and the obligations of such Guarantor under its guarantee of the Second Priority Claims, shall be automatically, unconditionally and
simultaneously released, and the Second Priority Agent shall, for itself and on behalf of the other Second Priority Secured Parties, promptly
execute and deliver to the First Priority Agent, the relevant Grantor or such Guarantor such termination statements, releases and other
documents as the First Priority Agent or the relevant Grantor or Guarantor may reasonably request to effectively confirm such Release.
(b) Until the Discharge of First Priority Claims occurs, the Second Priority Agent, for itself and on behalf of each other Second
Priority Secured Party, hereby appoints the First Priority Agent, and any officer or agent of the First Priority Agent, with full power of
substitution, as the attorney-in-fact of each Second Priority Secured Party for the purpose of carrying out the provisions of this Section 3.04
and taking any action and executing any instrument that the First Priority Agent may deem necessary or advisable to accomplish the purposes
of this Section 3.04 (including any endorsements or other instruments of transfer or release), which appointment is irrevocable and coupled
with an interest but may only be exercised if the First Priority Agent requests that the Second Priority Agent (or applicable Second Priority
Secured Party) execute such instrument and such request is declined.
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SECTION 3.05. Automatic Release of First Priority Liens. If, in connection with the enforcement or exercise of any rights or remedies
with respect to the Collateral after the expiration of the Standstill Period that is permitted in accordance with clause (2) of the second proviso to
Section 3.02(a), including any Disposition of Collateral, the Second Priority Agent, for itself and on behalf of the other Second Priority Secured
Parties, (x) releases any of the Second Priority Liens, or (y) releases any Guarantor from its obligations under its guarantee of the Second
Priority Claims (in each case, a “Second Priority Release”), then the First Priority Liens on such Collateral, and the obligations of such
Guarantor under its guarantee of the First Priority Claims, shall be automatically, unconditionally and simultaneously released, and the First
Priority Agent shall, for itself and on behalf of the other First Priority Secured Parties, promptly execute and deliver to the Second Priority
Agent, the relevant Grantor or such Guarantor such termination statements, releases and other documents as the Second Priority Agent or the
relevant Grantor or Guarantor may reasonably request to effectively confirm such release; provided that so long as the Discharge of First
Priority Claims has not occurred, the proceeds of, or payments with respect to, any Second Priority Release that are received by the Second
Priority Agent or any other Second Priority Secured Party, shall be segregated and held in trust and forthwith transferred or paid over to the
First Priority Agent for the benefit of the First Priority Secured Parties in accordance with Section 4.02; provided further, however, that the
First Priority Lender shall not be obligated to release the First Priority Liens on any Collateral in connection with any sale or other Disposition
of Collateral to a Second Priority Secured Party or an affiliate thereof or any other transaction other than a sale of such Collateral to a third
Person with respect to which at least 75% of the consideration therefor consists of cash and cash equivalents.
SECTION 3.06. Insurance and Condemnation Awards. So long as the Discharge of First Priority Claims has not occurred, the First
Priority Agent and the other First Priority Secured Parties shall have the exclusive right, subject to the rights of the Grantors under the First
Priority Debt Documents, to settle and adjust claims in respect of Collateral under policies of insurance covering Collateral and to approve any
award granted in any condemnation or similar proceeding, or any deed in lieu of condemnation, in respect of the Collateral. All proceeds of any
such policy and any such award, or any payments with respect to a deed in lieu of condemnation, shall (a) first, prior to the Discharge of First
Priority Claims and subject to the rights of the Grantors under the First Priority Debt Documents, be paid to the First Priority Agent for the
benefit of First Priority Secured Parties pursuant to the terms of the First Priority Debt Documents, (b) second, after the Discharge of First
Priority Claims and subject to the rights of the Grantors under the Second Priority Debt Documents, be paid to the Second Priority Agent for
the benefit of the Second Priority Secured Parties pursuant to the terms of the Second Priority Debt Documents, and (c) third, be paid to the
owner of the subject property or as a court of competent jurisdiction may otherwise direct. Until the Discharge of First Priority Claims has
occurred, if the Second Priority Agent or any other Second Priority Secured Party shall, at any time, receive any proceeds of any such
insurance policy or any such award or payment, it shall transfer and pay over such proceeds to the First Priority Agent in accordance with
Section 4.02.
SECTION 3.07. Notification of Release of Collateral. Each of the First Priority Agent and the Second Priority Agent shall give the other
prompt written notice of the Disposition by it of, and Release by it of the Lien on, any Collateral. Such notice shall describe in reasonable detail
the subject Collateral, the parties involved in such Disposition or Release, the place, time
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manner and method thereof, and the consideration, if any, received therefor; provided, however, that the failure to give any such notice shall
not in and of itself in any way impair the effectiveness of any such Disposition or Release.
ARTICLE IV
Payments
SECTION 4.01. Application of Proceeds. Any Collateral or proceeds thereof received by any Secured Party in connection with any
Disposition of, or collection on, such Collateral upon the enforcement or exercise of any right or remedy (including any right of setoff) will be
applied as follows:
(a) first, to the payment of the costs and expenses of the applicable Secured Party in connection with such enforcement or exercise;
(b) second, after all such costs and expenses have been paid in full, to the First Priority Agent for application as provided in the
First Lien Intercreditor Agreement;
(c) third, after all such costs and expenses have been paid in full in cash and the Discharge of First Priority Claims has occurred, to
the payment of the Second Priority Claims, and
(d) fourth, after all such costs and expenses have been paid in full in cash, the Discharge of First Priority Claims has occurred, and
the Discharge of Second Priority Claims has occurred, any surplus Collateral or proceeds then remaining will be returned to the Company, the
applicable Guarantor or to whomsoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct.
SECTION 4.02. Payment Over. So long as the Discharge of First Priority Claims has not occurred, any Collateral or any proceeds thereof
(together with assets or proceeds subject to Liens referred to in the final sentence of Section 2.03) received by the Second Priority Agent or
any other Second Priority Secured Party in connection with any Disposition of, or collection on, such Collateral upon the enforcement or the
exercise of any right or remedy (including any right of setoff) with respect to the Collateral, or in connection with any insurance policy claim or
any condemnation award (or deed in lieu of condemnation) with respect to the Collateral, shall be segregated and held in trust and forthwith
transferred or paid over to the First Priority Agent for the benefit of the First Priority Secured Parties in the same form as received, together
with any necessary endorsements, or as a court of competent jurisdiction may otherwise direct. Until the Discharge of First Priority Claims
occurs, the Second Priority Agent, for itself and on behalf of each other Second Priority Secured Party, hereby appoints the First Priority
Agent, and any officer or agent of the First Priority Agent, with full power of substitution, the attorney-in-fact of each Second Priority Secured
Party for the purpose of carrying out the provisions of this Section 4.02 and taking any action and executing any instrument that the First
Priority Agent may deem necessary or advisable to accomplish the purposes of this Section 4.02, which appointment is irrevocable and
coupled with an interest.
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SECTION 4.03. Certain Agreements with Respect to Unenforceable Liens. Notwithstanding anything to the contrary contained herein,
if in any Insolvency or Liquidation Proceeding a determination is made that any Lien encumbering any Collateral is not enforceable for any
reason, then the Second Priority Agent and the Second Priority Secured Parties agree that, any distribution or recovery they may receive with
respect to, or allocable to, the value of the assets constituting Collateral subject to an enforceable Lien in favor of the Second Priority Secured
Parties or any proceeds thereof shall (for so long as the Discharge of First Priority Claims has not occurred) be segregated and held in trust
and forthwith paid over to the First Priority Agent for the benefit of the First Priority Secured Parties in the same form as received without
recourse, representation or warranty (other than a representation of the Second Priority Agent that it has not otherwise sold, assigned,
transferred or pledged any right, title or interest in and to such distribution or recovery) but with any necessary endorsements or as a court of
competent jurisdiction may otherwise direct. Until the Discharge of First Priority Claims occurs, the Second Priority Agent, for itself and on
behalf of each other Second Priority Secured Party, hereby appoints the First Priority Agent, and any officer or agent of the First Priority
Agent, with full power of substitution, the attorney-in-fact of each Second Priority Secured Party for the limited purpose of carrying out the
provisions of this Section 4.03 and taking any action and executing any instrument that the First Priority Agent may deem necessary or
advisable to accomplish the purposes of this Section 4.03, which appointment is irrevocable and coupled with an interest.
ARTICLE V
Bailment for Perfection of Certain Security Interests
(a) The parties agree that if the First Priority Agent shall at any time hold a First Priority Lien on any Collateral that can be perfected
or the priority of which can be enhanced by the possession or control of such Collateral or of any account in which such Collateral is held, and
if such Collateral or any such account is in fact in the possession or under the control of the First Priority Agent, or of agents or bailees of the
First Priority Agent (such Collateral being referred to herein as the “Pledged or Controlled Collateral”), the First Priority Agent shall, solely
for the purpose of perfecting the Second Priority Liens granted under the Second Priority Debt Documents and subject to the terms and
conditions of this Article V, also (i) hold and/or maintain control of such Pledged or Controlled Collateral as gratuitous bailee for and
representative (as defined in Section 1-201(35) of the Uniform Commercial Code as in effect in the State of New York) of, or as agent for, the
Second Priority Agent, (ii) with respect to any securities accounts included in the Collateral, have “control” (within the meaning of Section 8-
106(d)(3) of the UCC) of such securities accounts on behalf of the Second Priority Agent and (iii) with respect to any deposit accounts
included in the Collateral, act as agent for the Second Priority Agent and any assignee.
(b) So long as the Discharge of First Priority Claims has not occurred, the First Priority Agent shall be entitled to deal with the
Pledged or Controlled Collateral in accordance with the terms of this Agreement and the other First Priority Debt Documents as if the Second
Priority Liens did not exist. The obligations and responsibilities of the First Priority Agent to the Second Priority Agent and the other Second
Priority Secured Parties under this Article V shall be limited solely to holding or controlling the Pledged or Controlled Collateral as
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gratuitous bailee and representative (as defined in Section 1 201(35) of the Uniform Commercial Code as in effect in the State of New York) in
accordance with this Article V. Without limiting the foregoing, the First Priority Agent shall have no obligation or responsibility to ensure that
any Pledged or Controlled Collateral is genuine or owned by any of the Grantors. The First Priority Agent acting pursuant to this Article V
shall not, by reason of this Agreement, any other Security Document or any other document, have a fiduciary relationship in respect of any
other First Priority Secured Party, the Second Priority Agent or any other Second Priority Secured Party.
(c) Upon the Discharge of First Priority Claims, the First Priority Agent shall transfer the possession and control of the Pledged or
Controlled Collateral, together with any necessary endorsements but without recourse or warranty, to the Second Priority Agent, and if no
Second Priority Claims are outstanding at such time, to the applicable Grantor, in each case so as to allow such Person to obtain possession
and control of such Pledged or Controlled Collateral. In connection with any transfer under the immediately preceding sentence, the First
Priority Agent agrees, at the expense of the Grantors, to take all actions in its power as shall be reasonably requested by the Second Priority
Agent to permit the Second Priority Agent to obtain, for the benefit of the Second Priority Secured Parties, a first priority security interest in
the Pledged or Controlled Collateral.
(d) After the Discharge of First Priority Claims and upon the Discharge of Second Priority Claims, the Second Priority Agent shall
transfer the possession and control of the Pledged or Controlled Collateral, together with any necessary endorsements but without recourse or
warranty, to the applicable Grantor, in each case so as to allow such Person to obtain possession and control of such Pledged or Controlled
Collateral.
ARTICLE VI
Insolvency or Liquidation Proceedings
SECTION 6.01. Finance and Sale Matters. (a) Until the Discharge of First Priority Claims has occurred, the Second Priority Agent, for
itself and on behalf of the other Second Priority Secured Parties, and subject to the provisions of Section 6.01(c), agrees that, in the event of
any Insolvency or Liquidation Proceeding, the Second Priority Secured Parties:
(i) will not oppose or object to the use of any Collateral constituting cash collateral under Section 363 of the Bankruptcy Code, or
any comparable provision of any other Bankruptcy Law, unless the First Priority Secured Parties, or a representative authorized by the
First Priority Secured Parties, shall oppose or object to such use of cash collateral;
(ii) will not oppose or object to any post-petition financing provided to any Grantor, whether provided by the First Priority Secured
Parties or any other Person, under Section 364 of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law (a
“DIP Financing”), or the Liens securing any DIP Financing (“DIP Financing Liens”), unless the First Priority Secured Parties, or a
representative authorized by the First Priority Secured Parties, shall then oppose or object to such DIP
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Financing or such DIP Financing Liens, and, to the extent that such DIP Financing Liens are senior to, or rank pari passu with, the First
Priority Liens on the Collateral, the Second Priority Agent will, for itself and on behalf of the other Second Priority Secured Parties,
subordinate the Second Priority Liens on the Collateral to the First Priority Liens on the Collateral, if applicable, and the DIP Financing
Liens on the terms of this Agreement; provided that, notwithstanding anything herein to the contrary, the Second Priority Secured
Parties retain their rights under the Bankruptcy Code to make post-petition financing proposals and such proposals shall not be deemed
to be an objection to any other DIP Financing proposals so long as (x) any court order approving such post-petition financing requires
that the First Priority Claims be paid in full in cash as a condition to such post-petition financing, and (y) the First Priority Claims are paid
in full in cash on the date of such post-petition financing, which date shall be no later than 10 days after the date on which such post-
petition financing is approved by the court in which such Insolvency or Liquidation Proceeding is pending;
(iii) except to the extent permitted by paragraph (b) of this Section 6.01, in connection with the use of cash collateral as described in
clause (i) above or a DIP Financing, will not request adequate protection with respect to any Collateral or any other relief in connection
with such use of cash collateral, DIP Financing or DIP Financing Liens; and
(iv) will not oppose or object to any Disposition of any Collateral free and clear of the Second Priority Liens or other claims under
Section 363 of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law, if the First Priority Secured Parties, or a
representative authorized by the First Priority Secured Parties, shall consent to such Disposition free and clear of First Priority Liens.
(b) The Second Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, agrees that no Second Priority
Secured Party shall contest, or support any other Person in contesting, (i) any request by the First Priority Agent or any other First Priority
Secured Party for adequate protection in respect of any First Priority Claims or (ii) any objection, based on a claim of a lack of adequate
protection with respect of any First Priority Claims, by the First Priority Agent or any other First Priority Secured Party to any motion, relief,
action or proceeding. Notwithstanding the immediately preceding sentence, if, in connection with any DIP Financing or use of cash collateral,
(A) any First Priority Secured Party seeks or requests adequate protection in the form of a Lien on additional collateral, the Second Priority
Agent may, for itself and on behalf of the other Second Priority Secured Parties, seek or request adequate protection in the form of a Lien on
such additional collateral, which Lien will be subordinated to the First Priority Liens and DIP Financing Liens on the same basis as the other
Second Priority Liens are subordinated to the First Priority Liens under this Agreement or (B) any Second Priority Secured Party is granted
adequate protection in the form of a Lien on additional collateral, the First Priority Agent shall, for itself and on behalf of the other First Priority
Secured Parties, be granted adequate protection in the form of a Lien on such additional collateral that is senior to such Second Priority Lien as
security for the First Priority Claims.
(c) Notwithstanding the foregoing, the applicable provisions of Section 6.01(a) and (b) shall only be binding on the Second Priority
Secured Parties with respect to any
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DIP Financing to the extent the principal amount of such DIP Financing, when taken together with the aggregate principal amount of the First
Priority Claims (which, in each case, for the avoidance of doubt shall not include any First Priority Claims of the type described in clause (ii) of
the definition thereof), does not exceed the sum of (i) the amount of Indebtedness at the time permitted to be outstanding pursuant to clause
(1) of the definition of “Permitted Debt” in Section 4.09(b) of the Second Priority Debt Document, and (ii) $5,000,000.
SECTION 6.02. Relief from the Automatic Stay. The Second Priority Agent, for itself and on behalf of the other Second Priority Secured
Parties, agrees that, so long as the Discharge of First Priority Claims has not occurred, no Second Priority Secured Party shall, without the prior
written consent of the First Priority Agent, seek or request relief from or modification of the automatic stay or any other stay in any Insolvency
or Liquidation Proceeding in respect of any part of the Collateral, any proceeds thereof or any Second Priority Lien on the Collateral.
SECTION 6.03. Reorganization Securities. If, in any Insolvency or Liquidation Proceeding, debt obligations of the reorganized debtor
secured by Liens upon any property of the reorganized debtor are distributed, pursuant to a plan of reorganization or similar dispositive
restructuring plan, on account of the First Priority Claims and the Second Priority Claims, then, to the extent the debt obligations distributed on
account of the First Priority Claims, on account of the Second Priority Claims are secured by Liens upon the same assets or property, the
provisions of this Agreement will survive the distribution of such debt obligations pursuant to such plan and will apply with like effect to the
Liens securing such debt obligations.
SECTION 6.04. Post-Petition Interest. (a) The Second Priority Agent, for itself and on behalf of the other Second Priority Secured
Parties, agrees that no Second Priority Secured Party shall oppose or seek to challenge any claim by the First Priority Agent or any other First
Priority Secured Party for allowance in any Insolvency or Liquidation Proceeding of First Priority Claims consisting of post-petition interest,
fees or expenses to the extent of the value of the First Priority Liens (it being understood and agreed that such value shall be determined
without regard to the existence of the Second Priority Liens on the Collateral).
(b) The First Priority Agent, for itself and on behalf of the other First Priority Secured Parties, agrees that the Second Priority Agent
or any other Second Priority Secured Party may make a claim for allowance in any Insolvency or Liquidation Proceeding of Second Priority
Claims consisting of post-petition interest, fees or expenses to the extent of the value of the Second Priority Liens; provided, however, that if
the First Priority Secured Parties shall have made any such claim, such claim (A) shall have also have been approved or (B) shall have been
approved prior to, or will be approved contemporaneous with, the approval of any such claim by any Second Priority Secured Party.
SECTION 6.05. Certain Waivers by the Second Priority Secured Parties. The Second Priority Agent, for itself and on behalf of the other
Second Priority Secured Parties, waives any claim any Second Priority Secured Party may hereafter have against any First Priority Secured
Party arising out of (a) the election by any First Priority Secured Party of the application of Section 1111(b)(2) of the Bankruptcy Code, or any
comparable provision of any other Bankruptcy Law, or (b) any use of cash collateral or financing arrangement, or any grant of a security
interest in the Collateral, in any Insolvency or Liquidation Proceeding.
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SECTION 6.06. Certain Voting Matters. Each of the First Priority Agent, on behalf of the First Priority Secured Parties and the Second
Priority Agent on behalf of the Second Priority Secured Parties, agrees that, without the written consent of the other, it will not seek to vote
with the other as a single class in connection with any plan of reorganization in any Insolvency or Liquidation Proceeding. Except as provided
in this Section 6.06, nothing in this Agreement is intended, or shall be construed, to limit the ability of the Second Priority Agent or the Second
Priority Secured Parties to vote on any plan of reorganization that maintains the lien subordination provisions of this Agreement or of either
the First Priority Secured Parties or Second Priority Secured Parties, to contest any plan of reorganization that does not maintain the lien
subordination provisions of this Agreement.
ARTICLE VII
Other Agreements
SECTION 7.01. Matters Relating to Debt Documents. (a) Each of the Company and the Second Priority Agent agrees that the Second
Priority Debt Agreement and each Second Priority Security Document shall contain the applicable provisions set forth on Annex I hereto, or
similar provisions approved by the First Priority Agent, which approval shall not be unreasonably withheld or delayed. Each of the Company
and the Second Priority Agent further agrees that each Second Priority Mortgage covering any Collateral shall contain such other language as
the First Priority Agent may reasonably request to reflect the subordination of such Second Priority Mortgage to the First Priority Security
Document covering such Collateral pursuant to this Agreement.
SECTION 7.02. Effect of Refinancing of Indebtedness under First Priority Debt Documents. If, substantially contemporaneously with
the Discharge of First Priority Claims, the Grantors Refinance Indebtedness outstanding under any First Priority Debt Document and provided
that:
(a) such Refinancing is permitted hereby and under the First Priority Debt Documents then in effect and the terms thereof would be
permitted under the First Lien Intercreditor Agreement as an amendment or modification of the First Priority Debt Document then being
refinanced,
(b) the Company gives to the Second Priority Agent and each other First Priority Secured Party (or the agent therefor) written
notice (the “Refinancing Notice”) electing the application of the provisions of this Section 7.02 to such Refinancing Indebtedness, and
(c) the lenders participating in such Refinancing become parties to the First Lien Intercreditor Agreement pursuant to the
provisions thereof if required thereunder, then:
(i) such Discharge of First Priority Claims shall automatically be deemed not to have occurred for all purposes of this Agreement,
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(ii) such Refinanced Indebtedness and all other obligations under the documents evidencing such Indebtedness (the “New First
Priority Claims”) shall automatically be treated as First Priority Claims for all purposes of this Agreement, including for purposes of the
Lien priorities and rights in respect of Collateral set forth herein,
(iii) the Debt Agreement and the other documents evidencing such Refinanced Indebtedness (the “New First Priority Debt
Documents”) shall automatically be treated as a First Priority Debt Agreement and as First Priority Debt Documents and, in the case of
New First Priority Debt Documents that are security documents pursuant to which any Grantor has granted a Lien to secure any New
First Priority Claim, as First Priority Security Documents for all purposes of this Agreement,
(iv) if there are no other First Priority Debt Documents then in effect, the collateral agent under the New First Priority Debt
Documents (the “New First Priority Agent”) shall be deemed to be the First Priority Agent for all purposes of this Agreement and
(v) the lenders under the New First Priority Debt Documents shall be deemed to be First Priority Secured Parties for all purposes of
this Agreement.
Upon receipt of a Refinancing Notice, which notice shall include the identity of the New First Priority Agent, the Second Priority Agent shall
promptly enter into such documents and agreements (including amendments or supplements to this Agreement) as the Company or such New
First Priority Agent may reasonably request in order to provide to the New First Priority Agent the rights and powers contemplated hereby, in
each case consistent in all material respects with the terms of this Agreement. The Company shall cause the agreement, document or
instrument pursuant to which the New First Priority Agent is appointed to provide that the New First Priority Agent agrees to be bound by the
terms of this Agreement. In furtherance of Section 2.03, if the New First Priority Claims are secured by assets of the Grantors (other than
Excluded Collateral) that do not also secure the Second Priority Claims, the applicable Grantors shall promptly grant a Second Priority Lien on
such assets to secure the Second Priority Claims.
SECTION 7.03. No Waiver by First Priority Secured Parties. Other than with respect to the Second Priority Permitted Actions, nothing
contained herein shall prohibit or in any way limit the First Priority Agent or any other First Priority Secured Party from opposing, challenging
or objecting to, in any Insolvency or Liquidation Proceeding or otherwise, any action taken, or any claim made, by the Second Priority Agent
or any other Second Priority Secured Party, including any request by the Second Priority Agent or any other Second Priority Secured Party for
adequate protection or any exercise by the Second Priority Agent or any other Second Priority Secured Party of any of its rights and remedies
under the Second Priority Debt Documents or otherwise.
SECTION 7.04. Reinstatement. If, in any Insolvency or Liquidation Proceeding or otherwise, all or part of any payment with respect to
the First Priority Claims previously made shall be rescinded for any reason whatsoever, then the First Priority Claims shall be reinstated to the
extent of the amount so rescinded and, if theretofore terminated, this Agreement shall be
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reinstated in full force and effect and such prior termination shall not diminish, release, discharge, impair or otherwise affect the Lien priorities
and the relative rights and obligations of the First Priority Secured Parties and the Second Priority Secured Parties provided for herein.
SECTION 7.05. Authorization of Collateral Agents. By accepting the benefits of this Agreement and the other First Priority Security
Documents, each First Priority Secured Party hereby authorizes the First Priority Agent to enter into this Agreement and to act on its behalf as
collateral agent hereunder and in connection herewith. By accepting the benefits of this Agreement and the other Second Priority Security
Documents, each Second Priority Secured Party hereby authorizes the Second Priority Agent to enter into this Agreement and to act on its
behalf as collateral agent hereunder and in connection herewith.
SECTION 7.06. Further Assurances. Each of the First Priority Agent, for itself and on behalf of the other First Priority Secured Parties,
and the Second Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, and each Grantor party hereto, for itself
and on behalf of its subsidiaries, agrees that it will execute, or will cause to be executed, any and all further documents, agreements and
instruments, and take all such further actions, as may be required under any applicable law, or which the First Priority Agent or the Second
Priority Agent may reasonably request, to effectuate the terms of this Agreement, including the relative Lien priorities provided for herein.
ARTICLE VIII
Representations and Warranties
SECTION 8.01. Representations and Warranties of Each Party. Each party hereto represents and warrants to the other parties hereto as
follows:
(a) Such party is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has
all requisite power and authority to execute and deliver this Agreement and perform its obligations hereunder.
(b) This Agreement has been duly executed and delivered by such party and constitutes a legal, valid and binding obligation of
such party, enforceable in accordance with its terms.
(c) The execution, delivery and performance by such party of this Agreement (i) do not require any consent or approval of,
registration or filing with or any other action by any governmental authority (except as contemplated hereby) and (ii) will not violate any
provision of law, statute, rule or regulation, or of the certificate or articles of incorporation or other constitutive documents or by-laws of such
party or any order of any governmental authority or any provision of any indenture, agreement or other instrument applicable to or binding
upon such party.
SECTION 8.02. Representations and Warranties of Each Collateral Agent. Each Collateral Agent represents and warrants to the other
parties hereto that it has been authorized by the Secured Parties under and as defined in the First Lien Intercreditor Agreement (in the case of
the First Priority Agent) or the Second Priority Debt Agreement (in the case of the Second Priority Agent) to enter into this Agreement.
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ARTICLE IX
No Reliance; No Liability; Obligations Absolute
SECTION 9.01. No Reliance; Information. The First Priority Secured Parties and the Second Priority Secured Parties shall have no duty
to disclose to any Second Priority Secured Party or to any First Priority Secured Party, respectively, any information relating to the Company
or any of the Grantors, or any other circumstance bearing upon the risk of nonpayment of any of the First Priority Claims or the Second Priority
Claims, as the case may be, that is known or becomes known to any of them or any of their Affiliates. In the event any First Priority Secured
Party or any Second Priority Secured Party, in its sole discretion, undertakes at any time or from time to time to provide any such information
to, respectively, any Second Priority Secured Party or any First Priority Secured Party, it shall be under no obligation (i) to make, and shall not
make or be deemed to have made, any express or implied representation or warranty, including with respect to the accuracy, completeness,
truthfulness or validity of the information so provided, (ii) to provide any additional information or to provide any such information on any
subsequent occasion or (iii) to undertake any investigation.
SECTION 9.02. No Warranties or Liability. (a) The First Priority Agent, for itself and on behalf of the other First Priority Secured Parties,
acknowledges and agrees that, except for the representations and warranties set forth in Article VIII, neither the Second Priority Agent nor any
other Second Priority Secured Party has made any express or implied representation or warranty, including with respect to the execution,
validity, legality, completeness, collectibility or enforceability of any of the Second Priority Debt Documents, the ownership of any Collateral
or the perfection or priority of any Liens thereon. The Second Priority Agent, for itself and on behalf of the other Second Priority Secured
Parties, acknowledges and agrees that, except for the representations and warranties set forth in Article VIII, neither the First Priority Agent
nor any other First Priority Secured Party has made any express or implied representation or warranty, including with respect to the execution,
validity, legality, completeness, collectibility or enforceability of any of the First Priority Debt Documents, the ownership of any Collateral or
the perfection or priority of any Liens thereon.
(b) The Second Priority Agent and the other Second Priority Secured Parties shall have no express or implied duty to the First
Priority Agent or any other First Priority Secured Party, and the First Priority Agent and the other First Priority Secured Parties shall have no
express or implied duty to the Second Priority Agent or any other Second Priority Secured Party, to act or refrain from acting in a manner which
allows, or results in, the occurrence or continuance of a default or an event of default under any First Priority Debt Document and any Second
Priority Debt Document (other than, in each case, this Agreement), regardless of any knowledge thereof which they may have or be charged
with.
(c) The Second Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, agrees no First Priority Secured
Party shall have any liability to the Second Priority Agent or any other Second Priority Secured Party, and hereby waives any claim
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against any First Priority Secured Party, arising out of any and all actions which the First Priority Agent or the other First Priority Secured
Parties may take or permit or omit to take with respect to (i) the First Priority Debt Documents (other than this Agreement), (ii) the collection of
the First Priority Claims or (iii) the maintenance of, the preservation of, the foreclosure upon or the Disposition of any Collateral.
SECTION 9.03. Obligations Absolute. The Lien priorities provided for herein and the respective rights, interests, agreements and
obligations hereunder of the First Priority Agent and the other First Priority Secured Parties and the Second Priority Agent and the other
Second Priority Secured Parties shall remain in full force and effect irrespective of:
(a) any lack of validity or enforceability of any Debt Document;
(b) any change in the time, place or manner of payment of, or in any other term of (including, subject to the limitations set forth in
Section 7.01(a), the Refinancing of), all or any portion of the First Priority Claims, it being specifically acknowledged that a portion of the First
Priority Claims consists or may consist of Indebtedness that is revolving in nature, and the amount thereof that may be outstanding at any
time or from time to time may be increased or reduced and subsequently reborrowed;
(c) any change in the time, place or manner of payment of, or, subject to the limitations set forth in Section 7.01(a), in any other term
of, all or any portion of the First Priority Claims;
(d) any amendment, waiver or other modification, whether by course of conduct or otherwise, of any Debt Document;
(e) the securing of any First Priority Claims or Second Priority Claims with any additional collateral or guarantees, or any exchange,
release, voiding, avoidance or non perfection of any security interest in any Collateral or any other collateral or any release of any guarantee
securing any First Priority Claims or Second Priority Claims;
(f) the commencement of any Insolvency or Liquidation Proceeding or Liquidation Sale in respect of the Company or any other
Grantor; or
(g) any other circumstances that otherwise might constitute a defense available to, or a discharge of, the Company or any other
Grantor in respect of the First Priority Claims or this Agreement, or any of the Second Priority Secured Parties in respect of this Agreement.
ARTICLE X
Miscellaneous
SECTION 10.01. Notices. Notices and other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by fax, as follows:
(a) if to the Company, Parent or any other Grantor, to it, at Gastar Exploration USA, Inc., 1331 Lamar Street, Suite 1080, Houston,
Texas 77010, Attention: Treasurer, (Fax No. (713) 739-0458);
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(b) if to the First Priority Agent, to Amegy Bank National Association, as Collateral Agent, 4400 Post Oak Parkway, 4th Floor,
Houston, Texas 77027, Attention: Energy Lending Dept. (Fax No. (713) 651-0345); and
(c) if to the Second Priority Agent, to Wells Fargo Bank, National Association, as Agent, 1445 Ross Avenue, 2nd Floor, Dallas,
Texas 75202-2812, Attention: Corporate Trust Services (Fax No. (214) 777-4086).
All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to
have been given on the date of receipt if delivered by hand or overnight courier service or sent by fax or on the date five Business Days after
dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed (properly addressed) to such party as provided in this
Section 10.01 or in accordance with the latest unrevoked direction from such party given in accordance with this Section 10.01. As agreed to
between the Company and any Collateral Agent from time to time, notices and other communications may also be delivered by e-mail to the e-
mail address of a representative of the applicable Person provided from time to time by such Person.
The First Priority Lender and the Second Priority Agent agree to use diligent efforts to provide each other with copies of any notices of
default or acceleration or similar notices which they give to the Borrower under the First Priority Debt Documents and Second Priority Debt
Documents respectively; provided, however, that in the event that either of such parties fails to provide the other with such notice, such
failure shall not affect their respective obligations hereunder or the effectiveness of any such notice.
SECTION 10.02. Conflicts. IN THE EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THIS
AGREEMENT AND THE PROVISIONS OF THE OTHER DEBT DOCUMENTS, THE PROVISIONS OF THIS AGREEMENT SHALL
CONTROL.
SECTION 10.03. Effectiveness; Survival; Termination. This Agreement shall become effective when executed and delivered by the
parties hereto. All covenants, agreements, representations and warranties made by any party in this Agreement shall be considered to have
been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement. The terms of this Agreement shall
survive, and shall continue in full force and effect, in any Insolvency or Liquidation Proceeding. The Second Priority Agent, for itself and on
behalf of the other Second Priority Secured Parties, hereby waives any and all rights the Second Priority Secured Parties may now or hereafter
have under applicable law to revoke this Agreement or any of the provisions of this Agreement. This Agreement shall terminate and be of no
further force and effect, (i) subject to compliance with its obligations to take certain actions upon Discharge of the Second Priority Claims
pursuant to Article V and Section 3.01(d), with respect to the Second Priority Agent, the Second Priority Secured Parties and the Second
Priority Claims, upon the later of (1) the date upon which the obligations under the Second Priority Debt
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Agreement terminate if there are no other Second Priority Claims outstanding on such date and (2) if there are other Second Priority Claims
outstanding on such date, the date upon which such Second Priority Claims terminate and (ii) subject to Section 7.02 and compliance with its
obligations to take certain actions upon Discharge of the First Priority Claims pursuant to Article V, with respect to the First Priority Agent, the
First Priority Secured Parties and the First Priority Claims, the date of Discharge of First Priority Claims, subject to the rights of the First Priority
Secured Parties under Section 7.04.
SECTION 10.04. Severability. In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal
or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself
affect the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal
or unenforceable provisions.
SECTION 10.05. Amendments; Waivers. (a) No failure or delay on the part of any party hereto in exercising any power or right hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and
remedies of the parties hereto are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any
provision of this Agreement or consent to any departure by any party therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section 10.05, and then such waiver or consent shall be effective only in the specific instance and for the
purpose for which given.
(b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or
agreements in writing entered into by the First Priority Agent and the Second Priority Agent; provided that no such agreement shall amend,
modify or otherwise affect the rights or obligations of any Grantor without such Person’s prior written consent.
SECTION 10.06. Postponement of Subrogation. The Second Priority Agent agrees that no payment or distribution to any First Priority
Secured Party pursuant to the provisions of this Agreement shall entitle any Second Priority Secured Party to exercise any rights of
subrogation in respect thereof until the Discharge of First Priority Claims shall have occurred. Following the Discharge of First Priority Claims,
each First Priority Secured Party agrees to execute such documents, agreements, and instruments as any Second Priority Secured Party may
reasonably request to evidence the transfer by subrogation to any such Person of an interest in the First Priority Claims resulting from
payments or distributions to such First Priority Secured Party by such Person, so long as all costs and expenses (including all reasonable legal
fees and disbursements) incurred in connection therewith by such First Priority Secured Party are paid by such Person upon request for
payment thereof.
SECTION 10.07. Applicable Law; Jurisdiction; Consent to Service of Process.
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(a) THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
(b) EACH PARTY HERETO, ON ITS OWN BEHALF AND ON BEHALF OF EACH PERSON ON WHOSE BEHALF IT ACTS, HEREBY IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THE SUPREME COURT FOR NEW YORK
COUNTY, NEW YORK OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM
EITHER THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF
ANY JUDGMENT, AND IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE
HEARD AND DETERMINED IN SUCH NEW YORK COURT OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH PARTY HERETO
AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.
(c) EACH PARTY HERETO, ON ITS OWN BEHALF AND ON BEHALF OF EACH PERSON ON WHOSE BEHALF IT ACTS, HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT IN ANY NEW YORK COURT
OR IN ANY SUCH FEDERAL COURT AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.
(d) EACH PARTY HERETO, ON ITS OWN BEHALF AND ON BEHALF OF EACH PERSON ON WHOSE BEHALF IT ACTS, IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.01. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY
PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.
SECTION 10.08. Waiver of Jury Trial. EACH PARTY HERETO, ON ITS OWN BEHALF AND ON BEHALF OF EACH PERSON ON WHOSE BEHALF IT
ACTS, HEREBY (A) WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, (B) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (C) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
10.08.
SECTION 10.09. Parties in Interest. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, as well as the other First Priority Secured Parties and Second Priority Secured Parties, all of whom
are intended to be bound by, and to be third party beneficiaries of, this Agreement. No other Person shall have or be entitled to assert rights or
benefits hereunder.
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SECTION 10.10. Specific Performance. Each Collateral Agent may demand specific performance of this Agreement and, on behalf of
itself and the respective other Secured Parties, hereby irrevocably waives any defense based on the adequacy of a remedy at law and any
other defense that might be asserted to bar the remedy of specific performance in any action which may be brought by the respective Secured
Parties.
SECTION 10.11. Headings. Article and Section headings used herein and the Table of Contents hereto are for convenience of reference
only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement.
SECTION 10.12. Counterparts. This Agreement may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract, and shall
become effective as provided in Section 10.03. Delivery of an executed signature page to this Agreement by facsimile transmission shall be as
effective as delivery of a manually signed counterpart of this Agreement.
SECTION 10.13. Provisions Solely to Define Relative Rights. The provisions of this Agreement are and are intended solely for the
purpose of defining the relative rights of the First Priority Secured Parties, on the one hand, and the Second Priority Secured Parties, on the
other hand. None of the Company, any other Grantor, any Guarantor or any other creditor thereof shall have any rights or obligations, except
as expressly provided in this Agreement hereunder and none of the Company, any other Grantor or any Guarantor may rely on the terms
hereof. Nothing in this Agreement is intended to or shall impair the obligations of the Company or any other Grantor or any Guarantor, which
are absolute and unconditional, to pay the First Priority Claims and the Second Priority Claims as and when the same shall become due and
payable in accordance with their terms.
SECTION 10.14. Amegy Agent Assignment. Effective immediately prior to the effectiveness of any other provision of this Agreement, the
Amegy Agent hereby assigns, without representation or warranty, whether express or implied or arising by statute or otherwise, all of its
rights, benefits, duties and obligations as “First Priority Agent” under the Original Intercreditor Agreement to the First Priority Agent.
(Signatures appear on following pages)
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers or
other representatives as of the day and year first above written.
AMEGY BANK NATIONAL ASSOCIATION, as First Priority WELLS FARGO BANK, NATIONAL ASSOCIATION, as
Agent Second Priority Agent
By: /s/ W. Bryan Chapman By: /s/ Deirdre H. Ward

Name: W. Bryan Chapman Name: Deirdre H. Ward
Title: Senior Vice President Title: Vice President
AMEGY BANK NATIONAL ASSOCIATION, as Amegy Agent GASTAR EXPLORATION USA, INC.
By: /s/ W. Bryan Chapman By: /s/ Michael A. Gerlich

Name: W. Bryan Chapman Name: Michael A. Gerlich
Title: Senior Vice President Title: Secretary and Treasurer
GASTAR EXPLORATION LTD. GASTAR EXPLORATION VICTORIA, INC.
By: /s/ Michael A. Gerlich By: /s/ Michael A. Gerlich

Name: Michael A. Gerlich Name: Michael A. Gerlich
Title: Vice President and Chief Financial Officer Title: Secretary and Treasurer
GASTAR EXPLORATION NEW SOUTH WALES, INC. GASTAR EXPLORATION TEXAS, INC.
By: /s/ Michael A. Gerlich By: /s/ Michael A. Gerlich

Name: Michael A. Gerlich Name: Michael A. Gerlich
Title: Secretary and Treasurer Title: Secretary and Treasurer
GASTAR EXPLORATION TEXAS, LP GASTAR EXPLORATION TEXAS LLC
By: GASTAR EXPLORATION TEXAS LLC, its General Partner By: /s/ Michael A. Gerlich
Name: Michael A. Gerlich
By: /s/ Michael A. Gerlich Title: Secretary and Treasurer
Name: Michael A. Gerlich
Title: Secretary and Treasurer
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Provision for the Second Priority Debt Agreement

THIS INDENTURE AND THE COLLATERAL AGREEMENTS ARE SUBJECT TO THE TERMS, LIMITATIONS AND CONDITIONS SET
FORTH IN THE INTERCREDITOR AGREEMENT. THE TRUSTEE, THE COMPANY AND EACH HOLDER OF A NOTE, BY ITS
ACCPETANCE THEREOF, IS DEEMED TO HAVE AUTHORIZED AND INSTRUCTED THE COLLATERAL AGENT TO ENTER INTO THE
INTERCREDITOR AGREEMENT ON ITS BEHALF.
Provision for the Second Priority Security Documents

[For Second Priority Security Documents entered into prior to the date hereof and not modified on or after the date hereof, the legend
thereunder as in effect on the date thereof need not be modified.]
“REFERENCE IS MADE TO THE AMENDED AND RESTATED INTERCREDITOR AGREEMENT DATED AS OF FEBRUARY 16, 2009 (AS
AMENDED, SUPPLEMENTED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “INTERCREDITOR AGREEMENT”),
AMONG THE COMPANY, THE SUBSIDIARIES OF THE COMPANY FROM TIME TO TIME PARTY THERETO, AMEGY BANK
NATIONAL ASSOCIATION, AS FIRST PRIORITY AGENT (AS DEFINED THEREIN), AND WELLS FARGO BANK, NATIONAL
ASSOCIATION, AS SECOND PRIORITY AGENT (AS DEFINED THEREIN). NOTWITHSTANDING ANYTHING HEREIN TO THE
CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE COLLATERAL AGENT, FOR THE BENEFIT OF THE SECURED
PARTIES, PURSUANT TO THIS AGREEMENT AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE COLLATERAL AGENT AND
THE OTHER SECURED PARTIES HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT. IN THE
EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THE INTERCREDITOR AGREEMENT AND THE
PROVISIONS OF THIS AGREEMENT OR THE OTHER INDENTURE DOCUMENTS, THE PROVISIONS OF THE INTERCREDITOR
AGREEMENT SHALL CONTROL.”
Exhibit 4.4
WAIVER AND SECOND AMENDMENT TO CREDIT AGREEMENT
among
THE GUARANTORS SIGNATORY HERETO
THE LENDERS SIGNATORY HERETO
and

as Administrative Agent
Effective February 16, 2009

TABLE OF CONTENTS
Article I DEFINITIONS AND INTERPRETATION 1

1.1 Terms Defined Above 1
1.2 Terms Defined in Credit Agreement 2
1.3 References 2
1.4 Articles and Sections 2
1.5 Number and Gender 2
Article II WAIVER 2
2.1 Waiver 2
2.2 Limitation on Waiver 3
Article III AMENDMENTS 3
3.1 Amendments to Section 1.2 3
3.3 Amendment to Section 2.5 7
3.20 Amendment to Exhibit III 12
3.21 Amendment to Table of Contents 12
Article IV CONDITIONS TO EFFECTIVENESS 12
Article V REPRESENTATIONS AND WARRANTIES 13
Article VI RATIFICATION AND ACKNOWLEDGMENTS 13
Article VII MISCELLANEOUS 14
7.1 Successors and Assigns 14
7.2 Rights of Third Parties 14
7.3 Counterparts 14
7.4 Integration 14
7.5 Severability 14
7.6 Governing Law 14
i
WAIVER AND SECOND AMENDMENT TO CREDIT AGREEMENT
This WAIVER AND SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) executed effective as of February 16, 2009
(the “Effective Date”) is by and among GASTAR EXPLORATION USA, INC., a Michigan corporation (the “Borrower”), GASTAR
EXPLORATION LTD., an Alberta, Canada corporation (the “Parent”), GASTAR EXPLORATION NEW SOUTH WALES, INC., a Michigan
corporation (“Gastar New South Wales”), GASTAR EXPLORATION VICTORIA, INC., a Michigan corporation (“Gastar Victoria”), GASTAR
EXPLORATION TEXAS, INC., a Michigan corporation (“Gastar Texas Inc”), GASTAR EXPLORATION TEXAS, LP, a Delaware limited
partnership (“Gastar Texas LP”), and GASTAR EXPLORATION TEXAS LLC, a Delaware limited liability company (“Gastar Texas LLC”, and
the Parent, Gastar New South Wales, Gastar Victoria, Gastar Texas Inc., Gastar Texas LP and Gastar Texas LLC, collectively, the “Initial
Guarantors”), the lenders party to that certain Credit Agreement dated effective November 29, 2007 by and among the Borrower, the Initial
Guarantors, the lenders party thereto or bound thereby from time to time (the “Lenders”), and Amegy Bank National Association, a national
banking association, as administrative agent for the Lenders, letter of credit issuer and collateral agent for the Lenders and certain other parties
(as amended to the Effective Date, the “Credit Agreement”), and AMEGY BANK NATIONAL ASSOCIATION, a national banking association,
as administrative agent for the Lenders (in such capacity, the “Agent”).
WITNESSETH:
WHEREAS, the Borrower, the Initial Guarantors, the Lenders and the Agent are parties to the Credit Agreement;
WHEREAS, the Borrower and the Initial Guarantors have requested that the Agent and the Lenders waive any default or right to exercise
any remedy as a result of any failure prior to the date hereof to comply with Section 6.14 of the Credit Agreement on December 31, 2008 and on
any day other than the end of a calendar quarter of a fiscal year of the Parent, and the Agent and the Lenders have agreed to do so as
provided in this Amendment; and
WHEREAS, the Borrower, the Initial Guarantors, the Lenders and the Agent desire to amend the Credit Agreement in the particulars
hereinafter provided;
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained in the Credit Agreement and
herein, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS AND INTERPRETATION
1.1 Terms Defined Above. As used in this Second Amendment to Credit Agreement, each of the terms “Agent,” “Amendment,”
“Borrower,” “Credit Agreement,” “Effective Date,” “Gastar New South Wales,” “Gastar Texas Inc,” “Gastar Texas LLC,” “Gastar Texas LP,”
“Gastar Victoria,” “Initial Guarantors,” Lenders” and “Parent” shall have the meaning assigned to such term hereinabove.
1.2 Terms Defined in Credit Agreement. Each term defined in the Credit Agreement and used herein without definition shall have the
meaning assigned to such term in the Credit Agreement, unless herein expressly provided to the contrary.
1.3 References. References in this Amendment to Exhibit, Article or Section numbers shall be to Exhibits, Articles or Sections of this
Amendment, unless expressly stated to the contrary. References in this Amendment to “hereby,” “herein,” “hereinafter,” “hereinabove,”
“hereinbelow,” “hereof,” “hereunder” and words of similar import shall be to this Amendment in its entirety and not only to the particular
Schedule, Exhibit, Article, or Section in which such reference appears. Specific enumeration herein shall not exclude the general and, in such
regard, the terms “includes” and “including” used herein shall mean “includes, without limitation,” or “including, without limitation,” as the
case may be, where appropriate. Except as otherwise indicated, references in this Amendment to statutes, sections, or regulations are to be
construed as including all statutory or regulatory provisions consolidating, amending, replacing, succeeding, or supplementing the statute,
section, or regulation referred to. References in this Amendment to “writing” include printing, typing, lithography, facsimile reproduction, and
other means of reproducing words in a tangible visible form. References in this Amendment to amendments and other contractual instruments
shall be deemed to include all exhibits and appendices attached thereto and all subsequent amendments and other modifications to such
instruments, but only to the extent such amendments and other modifications are not prohibited by the terms of the Credit Agreement or this
Amendment. References in this Amendment to Persons include their respective successors and permitted assigns.
1.4 Articles and Sections. This Amendment, for convenience only, has been divided into Articles and Sections; and it is understood that
the rights and other legal relations of the parties hereto shall be determined from this instrument as an entirety and without regard to the
aforesaid division into Articles and Sections and without regard to headings prefixed to such Articles or Sections.
1.5 Number and Gender. Whenever the context requires, reference herein made to the single number shall be understood to include the
plural; and likewise, the plural shall be understood to include the singular. Definitions of terms defined in the singular or plural shall be equally
applicable to the plural or singular, as the case may be, unless otherwise indicated. Words denoting sex shall be construed to include the
masculine, feminine and neuter, when such construction is appropriate; and specific enumeration shall not exclude the general but shall be
construed as cumulative.
ARTICLE II
WAIVER
2.1 Waiver. The Agent and the Lenders waive any Default or Event of Default under the Credit Agreement or any other Loan Document
as a result of any failure prior to the date hereof to comply with Section 6.14 of the Credit Agreement on December 31, 2008 and on any day
other than the end of a calendar quarter of a fiscal year of the Parent, together with the right of the Lender to exercise any remedy based
thereon.
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2.2 Limitation on Waiver. Except for the waiver set forth above in Section 2.1, nothing contained herein shall otherwise be deemed a
consent to any violation of, or a waiver of compliance with, any term, provision or condition set forth in any of the Loan Documents or a
consent to or waiver of any other or future violations, breaches, Defaults or Events of Default.
ARTICLE III
AMENDMENTS
Effective as of the Effective Date, the Borrower, the Initial Guarantors, the Lenders and the Agent hereby amend the Credit Agreement in
the following particulars:
3.1 Amendments to Section 1.2. Section 1.2 of the Credit Agreement is amended to:
(a) delete therefrom the proviso appearing in the definition of “Applicable Commitment Fee Percentage”;
(b) replace the definition of “Applicable Commitment Fee Percentage” appearing therein with the following:
“‘Applicable Commitment Fee Percentage’ shall mean a per annum rate determined by reference to the following table:
Applicable
C om m itm e n t
Fe e
Borrowing Base Utiliz ation Pe rce n tage
≥66% 0.75%
<66% 0.50%”
(c) replace the definition of “Applicable Margin” appearing therein with the following:
“‘Applicable Margin’ shall mean (a) on any day and as to each LIBO Rate Loan or Base Rate Loan under the Facility, as the
case may be, outstanding on such day the amount determined by reference to the following table:
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Applicable
Margin
LIBO Base
Rate Rate
Borrowing Base Utiliz ation Loan s Loan s
≥90% 3.25% 1.00%
≥66%, but <90% 3.00% 0.75%
≥33%, <66% 2.75% 0.50%
<33% 2.50% 0.25%
; provided, however, during any period while there exists any Deficiency, the relevant amount above shall be increased by two
percent (2.0%).”
(d) replace the definition of “Current Liabilities” appearing therein with the following:
“‘Current Liabilities’ shall mean all liabilities which would, in accordance with GAAP, be included as current liabilities on a
consolidated balance sheet of the Parent and its consolidated Subsidiaries, but excluding current maturities in respect of the
Obligations, both principal and interest, and non-cash derivative current liabilities arising from Commodity Hedge Agreements,
current maturities of the Indebtedness of the Parent listed on Schedule 6.1 to the extent any such Indebtedness matures after
October 15, 2009 and current maturities in respect of the Wayzata Indebtedness.”
(e) delete therefrom the definitions of “CD Balance,” “GeoStar,” “GeoStar Demand Letter,” “GeoStar Dispute,” “GeoStar
Purchase and Sale Agreement” and “GeoStar Rescission Amount”;
(f) replace the definition of “Obligations” appearing therein with the following:
‘Obligations’ shall mean, without duplication of the same amount in more than one category, (a) all Indebtedness of the
Borrower evidenced by the Notes, (b) the obligation of the Borrower to provide to or reimburse the Agent, as the issuer of the
Letters of Credit, as the case may be, for amounts payable, paid or incurred with respect to Letters of Credit, (c) the undrawn,
unexpired amount of all outstanding Letters of Credit, (d) Indebtedness of the Borrower in respect of Commodity Hedge
Agreements or Interest Rate Hedge Agreements with Approved Hedge Counterparties, so
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long as in compliance with the provisions of Section 6.1, (which it is agreed shall rank pari passu with all other items listed in this
definition), (e) the obligation of the Borrower for the payment of Commitment Fees and other fees pursuant to the provisions of this
Agreement or the Fee Letter, (f) all other obligations and liabilities of the Borrower to the Agent or the Lenders, now existing or
hereafter incurred, under, arising out of or in connection with any Loan Document or any Commodity Hedge Agreement or Interest
Rate Hedge Agreement with an Approved Hedge Counterparty and in compliance with the provisions of Section 6.1 and (g) all
obligations and liabilities owing by the Borrower or any Guarantor to Amegy under all treasury management arrangements between
any of the Borrower and the Guarantors and Amegy (which it is agreed shall rank pari passu with all other items listed in this
definition), and to the extent that any of the foregoing includes or refers to the payment of amounts deemed or constituting
interest, only so much thereof as shall have accrued, been earned and which remains unpaid at each relevant time of
determination.”
(g) replace the definition of “Intercreditor Agreement” appearing therein with the following:
“‘Intercreditor Agreement’ shall mean the Amended and Restated Intercreditor Agreement dated February 16, 2009 by and
among the Borrower, the Initial Guarantors, the Collateral Agent, the Second Lien Facility Agent and, for the limited purpose stated
therein, the Agent containing terms acceptable to the Agent.”
(h) replace clause (j) of the definition of “Permitted Liens” appearing therein with the following:
“(j) Liens securing (i) the Wayzata Facility, so long as subject to the terms of the Collateral Agency Agreement and the
Agreement and (ii) the Second Lien Indebtedness, so long as subject to the terms of the Intercreditor Agreement,”.
(i) add thereto the following definitions in the appropriate alphabetical location:
‘Collateral Agency Agreement’ shall mean the Collateral Agency and Intercreditor Agreement dated February 16, 2009 by and
among the Collateral Agent, the Agent, the Wayzata Facility Agent, BP Corporation North America Inc., the Borrower and the
Initial Guarantors.
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‘Collateral Agent’ shall mean Amegy Bank National Association in its capacity as the Collateral Agent under the Collateral
Agency Agreement.
‘Wayzata Credit Agreement’ shall mean the Credit Agreement dated as of February 16, 2009 entered into by and among the
Borrower, the Parent, the Wayzata Facility Lenders and the Wayzata Facility Agent governing term loans in the aggregate amount
of $25,000,000 by the Wayzata Facility Lenders to the Borrower, as the same may be amended, supplemented, restated or otherwise
modified from time to time in compliance with the applicable provisions of the Collateral Agency Agreement.
“‘Wayzata Facility Agent’ shall mean Wayzata Investment Partners LLC, a limited liability company, in its capacity as
Administrative agent for the Wayzata Facility Lenders under the Wayzata Credit Agreement.
‘Wayzata Facility Lenders’ shall mean the lenders party to the Wayzata Credit Agreement.
‘Wayzata Guaranty’ means the Guaranty dated as of February 16, 2009, as from time to time amended, supplemented, restated,
renewed, extended or replaced, executed by the Initial Guarantors in favor of the Wayzata Facility Agent guaranteeing the payment
of the indebtedness evidenced by the Wayzata Credit Agreement and the Notes executed by the Borrower to the order of the
Lenders pursuant to the Wayzata Credit Agreement in the aggregate original principal amount of $25,000,000, bearing interest and
payable as therein provided or as provided in the Wayzata Credit Agreement and with a final maturity date of the “Maturity Date”,
as defined in the Wayzata Credit Agreement.
‘Wayzata Indebtedness’ shall mean Indebtedness of the Borrower under the Wayzata Credit Agreement which is subject to
the provisions of the Collateral Agency Agreement and the Intercreditor Agreement.”
3.2 Amendments to Section 2.1. (a) Clause (iii) of the proviso appearing in subsection (e) of Section 2.1 of the Credit Agreement is
amended to read as follows in its entirety:
“the L/C Exposure, including that under any requested Letter of Credit, shall not exceed at any time $10,000,000”; and
(b) Subsection (f) of Section 2.1 of the Credit Agreement is amended to read as follows in its entirety:
“(f) In connection with the issuance, renewal or extension by the Agent of any Letter of Credit pursuant to Section 2.1(e), the
Borrower shall pay to the Agent, for the account of the Lenders, a per annum letter of credit fee calculated on the basis of a year of
360 days, and actual days elapsed (including the first day but excluding the last day), in an amount equal to the greater of (i) the
face amount of such Letter of Credit multiplied by the Applicable Margin for LIBO Rate Loans in effect at the date of issuance,
renewal or extension of the relevant Letter of Credit, such fee to be payable in substantially equal installments due on the date of
issuance, renewal or extension, the corresponding day in each third calendar month thereafter during the term of the relevant Letter
of Credit and at the expiry date of the relevant Letter of Credit and (ii) $300 payable at the time of issuance, renewal or extension of
the relevant Letter of Credit. Such fee shall be payable only with respect to the period of time for which the relevant Letter of Credit
is outstanding; provided, however, that neither the Agent nor any Lender shall have any obligation to refund, upon early
cancellation of the relevant Letter of Credit, any portion of such minimum fee or any portion of any quarterly installment of the
applicable fee previously paid. The Borrower also agrees to pay on demand to the Agent, solely for its account as issuer of the
relevant Letter of Credit, its customary letter of credit transaction fees and expenses, including amendment fees, payable with
respect to each Letter of Credit.”
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3.3 Amendment to Section 2.5. Section 2.5 of the Credit Agreement is amended to add thereto a new sentence as the third sentence
thereof reading as follows in its entirety:
“Furthermore, notwithstanding the preceding two sentences of this Section 2.5, in no event shall interest accrue and be payable on
any Base Rate Loans or any LIBO Rate Loans on the basis of a per annum rate less than five percent (5%).”
3.4 Amendment to Section 2.6. The fourth sentence of Section 2.6 of the Credit Agreement is amended to read as follows in its entirety:
“Notwithstanding the foregoing in this Section 2.6, the Commitment Termination Date in effect as of the Closing Date will be
extended to December 1, 2010 if requested by the Borrower in writing no less than 30 days prior to such Commitment Termination
Date and (a) there exists, both at the time of such request and at the time of execution of the amendment to this Agreement which is
the subject of clause (d) of this sentence, no Default or Event of Default, (b) repayment of the Parent’s convertible senior
unsecured debentures due November 20, 2009 has occurred or the Agent has been provided with assurance acceptable to the
Agent that such repayment will occur, which assurance may be by way of confirmation of the funding capability of a lender or
lenders providing a commitment to provide funds for such repayment, funding of the repayment amount into an escrow account on
terms acceptable to the
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Agent, a letter of credit from an issuer acceptable to the Agent and containing terms acceptable to the Agent or other credit
support acceptable to the Agent or other means acceptable to the Agent, (c) the Borrower shall have paid a fee to the Agent for
the account of the Agent and, as agreed among the Agent and the Lenders, the Lenders in the amount of one quarter of one
percent (0.25%) of the Borrowing Base to be in effect as of the effectiveness of such extension and (d) the Borrower, the Agent and
the Lenders have joined in an amendment to this Agreement amending the definition of Commitment Termination Date to reflect
such extension.”
3.5 Amendment to Section 2.9. Clause (vii) of Section 2.9(a) of the Credit Agreement is amended to read as follows in its entirety:
“(vii) each payment by the Borrower under Commodity Hedge Agreements and Interest Rate Hedge Agreements with Approved
Hedge Counterparties and under treasury management arrangements with Amegy shall be made only to the Person or Persons
entitled thereto.”
3.6 Amendment to Section 2.10. The proviso appearing in the first sentence of subsection (d) of Section 2.10 of the Credit Agreement is
amended to read as follows in its entirety:
“; provided, however, in no event shall the Borrowing Base exceed (i) the maximum amount permitted under the terms of the
Wayzata Credit Agreement or (ii) when taken with the outstanding Wayzata Indebtedness, the maximum amount of “Credit
Facilities” (as such term is defined in the Second Lien Credit Agreement) permitted under the terms of the Second Lien Credit
Agreement in effect at such time.”
3.7 Amendment to Section 2.11. A new paragraph (c) is added to Section 2.11 of the Credit Agreement reading as follows:
“(c) Net proceeds (being gross proceeds minus reasonable and customary transaction costs) from sales of Oil and Gas Properties
of the Borrower or any of the Subsidiaries or sales of Subsidiaries of the Parent permitted pursuant to the provisions of Section 6.4
or with the waiver of the prohibition of Section 6.4 by the Agent and the Required Lenders shall be applied, substantially
contemporaneously with receipt of any such net proceeds, to reduce any then existing Deficiency, notwithstanding any provision
of Section 2.11(a) regarding the elimination of any Deficiency. Any prepayment pursuant to the provisions of this Section 2.11(c)
shall be without premium or penalty, except as provided in Section 2.18.”
3.8 Amendment to Section 5.6. Section 5.6 of the Credit Agreement is amended to replace the period at the end of such Section 5.6 with a
semicolon, and to add thereto the following, at the far left margin of such Section 5.6:
“and, at least ten Business Days prior to the consummation of any such sale, written notice of any proposed sale of Oil and Gas
Properties of the Borrower or any Subsidiary of the Parent or proposed sale of a Subsidiary of the Parent, including in such written
notice identification of the Oil and Gas Properties or the Subsidiary of the Parent which is the subject of the proposed sale and a
summary of the principal terms of the proposed sale.”
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3.9 Amendment to Section 5.24. Section 5.24 of the Credit Agreement is amended to read as follows in its entirety:
“5.24 Bank Accounts. As soon as practicable, transfer its operating and deposit accounts to Amegy.”
3.10 Amendments to Section 6.1. (a) Clause (c) in the first proviso appearing in Section 6.1 of the Credit Agreement is amended to read as
follows in its entirety:
“(c) Indebtedness under Commodity Hedge Agreements (other than those entered into on a speculative basis), including
reimbursement obligations under letters of credit securing or supporting such Indebtedness, with any Approved Hedge
Counterparty, Secured Third Party Hedge Counterparty or, so long as each such Person is acceptable to the Agent, other
counterparties, provided that (i) such agreements shall not be for a term in excess of three years, (ii) such agreements shall not be
entered into with respect to more than eighty five percent (85%), in the aggregate, of Projected Production; provided that, if the
Available Commitment is at least equal to ten percent (10%) of the Commitment Amount, such agreements may cover up to one
hundred percent (100%) of Projected Production so long as such agreements covering in excess of eighty five percent (85%) of
Projected Production are floors and (iii) the floor prices in such agreements are not less than the prices used by the Agent in its
most recent Borrowing Base determination as of the time the relevant agreements are entered into,”.
(b) Clause (d) in the first proviso appearing in Section 6.1 of the Credit Agreement is amended to read as follows in its entirety:
“(d) Indebtedness under Interest Rate Hedge Agreements with any Approved Hedge Counterparty, Secured Third Party Hedge
Counterparty or, so long as each such Person is acceptable to the Agent, other counterparties, provided that such agreements
shall not be entered into with respect to notional principal amounts in excess of one hundred percent (100%) of the Loan Balance,”.
(c) Clause (f) in the first proviso appearing in Section 6.1 of the Credit Agreement is amended to read as follows in its entirety:
“(f) the Wayzata Indebtedness and the Second Lien Indebtedness,”.
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“6.2 Contingent Obligations. Create, incur, assume, or suffer to exist any Contingent Obligation; provided, however, the foregoing
restriction shall not apply to (a) performance guarantees, performance surety or other bonds or endorsements of items deposited
for collection, in each case provided in the ordinary course of business, (b) trade credit incurred or operating leases entered into in
the ordinary course of business, (c) the Guaranties (d) the Wayzata Guaranty or (e) guaranties provided pursuant to the Second
Lien Credit Agreement.”
3.12 Amendment to Section 6.6. Section 6.6 of the Credit Agreement is amended to delete therefrom the proviso appearing therein.
3.13 Amendment to Section 6.8. Clause (g) of the first proviso appearing in Section 6.8 of the Credit Agreement is amended to read as
follows in its entirety:
“(g) the acquisition by the Borrower of up to a thirty five percent (35%) equity interest in Narrabri Power Pty Ltd, an Australian
proprietary limited company, for a purchase price not to exceed $4,000,000 and further Investments by the Borrower in such entity,
so long as the aggregate Investments by the Borrower pursuant to this clause (g), including such initial purchase price, do not
exceed $10,000,000 or”.
3.14 Amendment to Section 6.9. The last clause of Section 6.9 of the Credit Agreement is amended to read as follows in its entirety:
“or make or agree to make any voluntary prepayment on the Second Lien Indebtedness or make or agree to make any voluntary
prepayment on the Wayzata Indebtedness at a point in time when there exists a Deficiency, a Default or an Event of Default.”
3.15 Amendment to Section 6.10. The proviso appearing in Section 6.10 of the Credit Agreement is amended to read as follows in its
entirety:
“provided, however, that the foregoing shall not restrict transactions of merger, consolidation or amalgamation among any of the
Domestic Subsidiaries of the Parent or, if the Borrower is the surviving entity, between the Borrower and any Domestic Subsidiary
of the Parent, or any liquidation winding up or dissolution of a Domestic Subsidiary of the Borrower.”
“6.14 Current Ratio. Permit the ratio, determined as of the end of each quarter of each fiscal year of the Parent, of Current Assets to
Current Liabilities to be less than 1.00 to 1.00.”
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“6.15 Total Net Indebtedness to EBITDA Ratio. Permit the ratio, determined as of the end of each quarter of each fiscal year of the
Parent, commencing with that ending on December 31, 2007, of (a) Indebtedness of the Parent, on a consolidated basis with its
consolidated Subsidiaries, for borrowed money (exclusive, for the avoidance of doubt, of trade accounts payable and accrued
liabilities, net unrealized losses or charges in respect of Commodity Hedge Agreements or Interest Rate Hedge Agreements and the
undrawn, unexpired amount of all outstanding Letters of Credit, if such would otherwise be included) in excess of the amount of
unrestricted (other than pursuant to applicable provisions of this Agreement or any other Loan Document or the Second Lien
Credit Agreement or documents entered into pursuant thereto) cash or cash equivalents of the Parent on a consolidated basis with
its consolidated Subsidiaries to (b) EBITDA for the preceding four quarterly periods (including that ended on the date of
determination) to be more than the ratio indicated below for each relevant period indicated below:
Ratio Pe riod
4.50:1.00 Quarters ending September 30, 2008 through December
31, 2009
4.00:1.00 Quarters ending thereafter
“6.16. General and Administrative Expenses. Permit, as of the close of each quarter of each fiscal year of the Parent, commencing
with the quarter ending after the date of the initial Loan, general and administrative expenses of the Parent (determined in
accordance with GAAP and on a consolidated basis for the Parent and its consolidated Subsidiaries, but excluding compensation
in the form of shares of common stock of the Parent or rights to acquire shares of common stock of the Parent) for the relevant
quarter to exceed twenty five percent (25%) of revenue of the Parent on a consolidated basis with its consolidated Subsidiaries
from the sale of hydrocarbons, adjusted for net realized gains and losses on Commodity Hedge Agreements, for the relevant
quarter less the sum of (a) lease operating expenses (other than non-recurring costs, such as workover costs otherwise
constituting lease operating expenses) and (b) taxes on hydrocarbon production for the relevant quarter; provided, however, in
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calculating such ratio, third party implementation and optimization costs regarding Commodity Hedge Agreements up to a
maximum, as to any such quarter, of ten percent (10%) of general and administrative expenses of the Parent (determined on a
consolidated basis for the Parent and its consolidated Subsidiaries and on a cash, rather than accrual, basis, but excluding
compensation in the form of shares of common stock of the Parent or rights to acquire shares of common stock of the Parent) for
the twelve-month period ended on the last day of the relevant quarter shall not be included in general and administrative expenses,
but instead will be deducted in calculating net realized hedging gains and losses.”
“6.17 RESERVED.”
3.20 Amendment to Exhibit III. The form of Compliance Certificate constituting Exhibit III to the Credit Agreement is amended to delete
therefrom subsection (d) of Section 2 of such form.
3.21 Amendment to Table of Contents. The Table of Contents of the Credit Agreement is amended as necessary to give effect to this
Amendment.
ARTICLE IV
CONDITIONS TO EFFECTIVENESS
The effectiveness of this Amendment is expressly subject to satisfaction of the following conditions precedent:
(a) the Borrower shall have executed and delivered to the Agent multiple counterparts, as requested by the Agent, of Security
Documents, in form and substance satisfactory to the Agent, establishing Liens in favor or for the benefit of the Agent, as security
for the Obligations, obligations of the Borrower under Commodity Hedge Agreements with BP Corporation North America Inc. not
prohibited by the provisions of Section 6.1 of the Credit Agreement and the Wayzata Indebtedness (as such term is defined in
Section 3.1) against the leasehold or fee interests of the Borrower in the Marcellus Shale Area in Pennsylvania and West Virginia;
(b) the Agent shall have been provided evidence, satisfactory to the Agent, that the Second Lien Credit Agreement has been
amended, in a manner satisfactory to the Agent, to (i) permit the Wayzata Indebtedness (as such term is defined in Section 3.1)
under the terms of the Wayzata Credit Agreement (as such term is defined in Section 3.1), (ii) to provide for financial covenants no
more stringent than those provided in the Credit Agreement, as amended by this Amendment and (iii) increase the maximum
amount of indebtedness that may be incurred by the Borrower;
- 12 -
(c) the Agent shall have received evidence, satisfactory to the Agent, that the Wayzata Indebtedness (as such term is defined in
Section 3.1) is in place under the terms of the Wayzata Credit Agreement (as such term is defined in Section 3.1), as approved by
the Agent;
(d) the Agent shall have received evidence, satisfactory to the Agent, that each of the Collateral Agency Agreement (as such term
is defined in Section 3.1 and the Intercreditor Agreement (as such term is defined in Section 3.1), has been executed by each party
thereto; and
(e) the Agent shall have received from the Borrower $90,000 in immediately available funds as a portion of the consideration to the
Agent and the Lenders for entering into this Amendment, which fee shall be for the account of the Agent and, as may agreed
between the Agent and any of the Lenders, all or certain of the Lenders.
ARTICLE V
REPRESENTATIONS AND WARRANTIES
Each of the Borrower and the Initial Guarantors expressly re-makes, in favor of the Agent and the Lenders, each of the representations
and warranties set forth in Article IV of the Credit Agreement and in the other Loan Documents and made by it and represents and warrants
that all such representations and warranties remain true and correct; provided, however, for purposes of the representations and warranties
made in Section 4.8 and Section 4.17 of the Credit Agreement, respectively, the representation and warranty made in the relevant Section is
qualified by the disclosures set forth in Schedule 4.8 or Schedule 4.17, as the case may be, attached to this Amendment, rather than the
relevant Schedule attached to the Credit Agreement, and the Agent and the Lenders hereby accept such modification of the representations
and warranties made in Section 4.8 and Section 4.17 of the Credit Agreement, respectively.
ARTICLE VI
RATIFICATION AND ACKNOWLEDGMENTS
Each of the Borrower, the Initial Guarantors, the Lenders and the Agent does hereby adopt, ratify and confirm the Credit Agreement, as
amended hereby, and each of the other Loan Documents to which it is a party and acknowledges and agrees that the Credit Agreement, as
amended hereby, and each of the other Loan Documents to which it is a party is and remains in full force and effect. Furthermore, each of the
Borrower, the Initial Guarantors, the Lenders and the Agent acknowledges and agrees that: (a) as of the Effective Date, the Borrowing Base is
$18,000,000 and the Monthly Reduction Amount is $1,000,000 (with the first reduction of such Borrowing Base amount by operation of such
Monthly Reduction amount occurring on March 1, 2009), each of which shall remain at the relevant amount until redetermined in accordance
with
- 13 -
the provisions of Section 2.10 of the Credit Agreement, and (b) that certain amended Standby Letter of Credit No. SC 5746 dated December 16,
2008 in the amount of $100,000 issued by Amegy Bank National Association for the account of the Borrower and for the benefit of Bear Energy
LP, is deemed issued and outstanding under the increased maximum amount of L/C Exposure established by this Amendment and shall be
subject to the provisions of the Credit Agreement, as amended by this Amendment, applicable to Letters of Credit, including provisions of
Section 2.1 of the Credit Agreement.
ARTICLE VII
MISCELLANEOUS
7.1 Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted pursuant to the Credit Agreement.
7.2 Rights of Third Parties. Except as provided in Section 7.1, all provisions herein are imposed solely and exclusively for the benefit of
the parties hereto.
7.3 Counterparts. This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all
of such counterparts taken together shall be deemed to constitute one and the same instrument and shall be enforceable as of the Effective
Date upon the execution of one or more counterparts hereof by each of the parties hereto. In this regard, each of the parties hereto
acknowledges that a counterpart of this Amendment containing a set of counterpart execution pages reflecting the execution of each party
hereto shall be sufficient to reflect the execution of this Amendment by each necessary party hereto and shall constitute one instrument.
7.4 Integration. This Amendment constitutes the entire agreement among the parties hereto with respect to the subject hereof. All prior
understandings, statements and agreements, whether written or oral, relating to the subject hereof are superseded by this Amendment.
7.5 Severability. In the event that any one or more of the provisions contained in this Amendment shall for any reason be held invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Amendment.
7.6 Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO PRINCIPLES OF SUCH LAWS RELATING TO CONFLICTS OF
LAW.
(Signatures appear on following pages)
- 14 -
IN WITNESS WHEREOF, the parties hereto have caused this Waiver and Second Amendment to Credit Agreement to be duly executed
and delivered, as of the Effective Date, by their proper and duly authorized officers.
BORROWER:

Michael A. Gerlich
INITIAL GUARANTORS:

Michael A. Gerlich
Vice President and
Chief Financial Officer
GASTAR EXPLORATION NEW SOUTH WALES, INC.

Michael A. Gerlich
(Signatures continue on following pages)
- 15 -
GASTAR EXPLORATION VICTORIA, INC.

Michael A. Gerlich
GASTAR EXPLORATION TEXAS, INC.

Michael A. Gerlich
GASTAR EXPLORATION TEXAS, LP
By: Gastar Exploration Texas LLC,

its General Partner

Michael A. Gerlich
GASTAR EXPLORATION TEXAS LLC

Michael A. Gerlich
(Signatures continue on following page)
- 16 -
AGENT:
AMEGY BANK NATIONAL ASSOCIATION, as Agent
By: /s/ W. Bryan Chapman

W. Bryan Chapman
Senior Vice President
LENDER:
AMEGY BANK NATIONAL ASSOCIATION
By: /s/ W. Bryan Chapman

W. Bryan Chapman
Senior Vice President
- 17 -
Exhibit 99.1
LOGO NEWS RELEASE

Company Contact:
Gastar Exploration Ltd.
J. Russell Porter, Chief Executive Officer
713-739-1800 / rporter@gastar.com
Investor Relations Counsel:
Lisa Elliott / Anne Pearson
DRG&E : 713-529-6600
lelliott@drg-e.com / apearson@drg-e.com
GASTAR EXPLORATION ANNOUNCES SUCCESSFUL COMPLETION OF

CONSENT SOLICITATION AND INCURRANCE OF $25 MILLION UNDER NEW
SECURED TERM LOAN
HOUSTON, February 18, 2009 – Gastar Exploration Ltd.(Gastar) (NYSE Alternext US: GST and TSX: YGA) and Gastar Exploration USA,
Inc. (Gastar USA) today announced that Gastar USA has completed its previously announced solicitation of consents from holders of a
majority in aggregate principal amount of its $100 million 12 3/4 % Senior Secured Notes due 2012 for the elimination or modification of certain
covenants in the related indenture governing the Notes. Following the Company’s receipt of the requisite majority consent, the Company and
certain of its subsidiaries entered into the previously negotiated $25 million term loan facility and related collateral documents. On February 17,
2009, the Company drew $25 million under the new term loan facility and intends to use the net proceeds from such incurrence to fund current
and future capital commitments and operating costs.
About Gastar Exploration

Gastar Exploration Ltd. is an exploration and production company focused on finding and developing natural gas assets in North
America and Australia. The Company pursues a strategy combining deep natural gas exploration and development with lower risk CBM and
shale resource development. The Company owns and operates exploration and development acreage in the deep Bossier gas play of East
Texas and Marcellus Shale play in West Virginia and Pennsylvania. Gastar’s CBM activities are conducted within the Powder River Basin of
Wyoming and concentrated on more than 6 million gross acres controlled by Gastar and its joint development partners in Australia’s
Gunnedah Basin (PEL 238, PEL 433 and PEL 434) located in New South Wales.
Safe Harbor Statement and Disclaimer

This news release includes “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Act of 1934. A statement identified by the words “expects”, “projects”, “plans”, and certain of the other
foregoing statements may be deemed forward-looking statements. Although Gastar believes that the expectations reflected in such forward-
looking statements are reasonable, these
statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or
described in this news release. These include the risks of failure to obtain the proposed consent and satisfying other conditions to closing the
proposed term loan transaction.
The NYSE Alternext US LLC and Toronto Stock Exchange have not reviewed and do not accept responsibility for the adequacy or accuracy of
this release.
###

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GASTAR EXPLORATION LTD.

ALBERTA, CANADA 001-32714 98-0570897

1331 LAMAR STREET, SUITE 1080

ITEM 1.01 – ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

ITEM 8.01 – OTHER EVENTS

ITEM 9.01 – FINANCIAL STATEMENTS AND EXHIBITS

Exh ibit No. De scription of Docu m e n t

GASTAR EXPLORATION LTD.

Date: February 20, 2009 /s/ J. RUSSELL PORTER

Exh ibit No. De scription of Docu m e n t

GASTAR EXPLORATION LTD.

THE GUARANTORS NAMED HEREIN,

WELLS FARGO BANK, NATIONAL ASSOCIATION

as Trustee and Collateral Agent

Dated as of February 16, 2009

Dated as of November 29, 2007

Section 2.1 Definitions.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

GASTAR EXPLORATION USA, INC.

By: /s/ J. Russell Porter

WELLS FARGO BANK, NATIONAL ASSOCIATION, as

By: /s/ Deirdre H. Ward

GASTAR EXPLORATION LTD.

By: /s/ Michael A. Gerlich

GASTAR EXPLORATION NEW SOUTH WALES, INC.

By: /s/ J. Russell Porter

GASTAR EXPLORATION VICTORIA, INC.

By: /s/ J. Russell Porter

SIGNATURE PAGE TO SUPPLEMENTAL INDENTURE

GASTAR EXPLORATION TEXAS, INC.

By: /s/ J. Russell Porter

GASTAR EXPLORATION TEXAS, LP

By: /s/ J. Russell Porter

GASTAR EXPLORATION TEXAS LLC

By: /s/ J. Russell Porter

SIGNATURE PAGE TO SUPPLEMENTAL INDENTURE

RESTATED INTERCREDITOR AGREEMENT

GASTAR EXPLORATION USA, INC.,

GASTAR EXPLORATION LTD.,

WAYZATA INVESTMENT PARTNERS LLC,

and CERTAIN OTHER PARTIES HERETO,

February 16, 2009

ARTICLE I - Definitions and References 1

Section 5.14. Government Regulation 29

ARTICLE VII - Negative Covenants of Borrower 42

iii CREDIT AGREEMENT

Section 10.7. Governing Law; Submission to Process 65

Schedules and Exhibits:

ARTICLE I - Definitions and References

“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by Administrative Agent.

“Agreement” means this Credit Agreement.

“Borrowing” means a borrowing of new Loans.

“Disclosure Schedule” means Schedule 1 hereto.

“Indebtedness” means, as to any Person, without duplication,

(c) all other indebtedness of such Person for borrowed money,

“Indemnified Taxes” means Taxes other than Excluded Taxes.

“Indemnitee” has the meaning given to such term in Section 6.20.

“Lender Parties” means Administrative Agent and all Lenders.

“Lenders Schedule” means Schedule 3 hereto.

“Loan” has the meaning given to such term in Section 2.1.

“Maturity Date” means February 15, 2012.

“Note” has the meaning given to such term in Section 2.1.

“Permitted Liens” means: