Document:

Agreement between Gastar Exploration Ltd. and GeoStar Corporation

 Exhibit 4.17 
  
 AGREEMENT 
  
 THIS AGREEMENT (“Agreement”) is made as of the 11th day of August, 2005 by and among GEOSTAR CORPORATION, a Delaware Corporation
(“GeoStar”), and GASTAR EXPLORATION, LTD, an Alberta, Canada Corporation, together with its subsidiary and affiliated companies, FIRST SOURCENERGY WYOMING, INC., a Michigan Corporation, and FIRST TEXAS DEVELOPMENT, INC., a Michigan
Corporation (collectively referred to as “Gastar”). 
  
 RECITALS 
  
 WHEREAS, in connection with those
Purchase and Sale Agreement and Assignment of Interests for producing and non-producing properties in Texas, Wyoming and Montana, entered into on June 16, 2005 by, among others, the parties hereto, Gastar currently owes GeoStar an amount equal
to Thirty Two Million U.S. Dollars (US $32,000,000), as represented by the three promissory notes attached hereto as Exhibit A (“Original Promissory Notes”). 
  
 WHEREAS, the parties now wish to satisfy the debt represented by the Original Promissory Notes in the manner described in
this Agreement and cancel the Original Promissory Notes. 
  
 NOW
THEREFORE, in exchange for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
  
 1. GeoStar agrees to accept, and Gastar agrees to pay, the following consideration in full satisfaction of the amounts due under the Original Promissory
Notes: 
  

	 	a.	Upon execution of this Agreement, Gastar shall transfer to GeoStar or its designee 6,373,694 shares of Gastar common stock, with a deemed value equal to Seventeen Million U.S.
Dollars (US $17,000,000), subject to the Registration Rights Agreement executed by the parties on June 16, 2005. The number of shares was determined by dividing Seventeen Million U.S. Dollars (US$17,000,000) by an agreed upon price of Gastar
common stock of CDN $3.25 per share. All such shares of Gastar common stock shall be deemed to be “Registrable Shares” under the Registration Rights Agreement, dated as of June 16, 2005. 

  

	 	b.	Upon execution of this Agreement, Gastar shall execute a Promissory Note in the principal amount of Fifteen Million U.S. Dollars (US $15,000,000) in the form attached hereto as
Exhibit B (“New Promissory Note”). The New Promissory Note shall be payable in accordance with its terms. Payment of the New Promissory Note shall be subordinate in payment and priority to Gastar’s senior secured notes.

  
 2. The parties acknowledge and agree that the
Original Promissory Notes, along with any and all rights associated therewith, are hereby cancelled and void. Geostar shall return the Original Promissory Notes to Gastar. 

 3. The parties can amend this Agreement only by written agreement executed by the parties hereto. No
party may assign this Agreement or any right or obligation under this Agreement without the prior written consent of the other parties. 
  
 4. Gastar hereby agrees that if it raises equity capital through the public or private sale of common shares or preferred shares or other securities
junior and/or subordinated to Gastar’s senior secured notes, Gastar shall use (i) a minimum of 25% of the first $25 million of equity capital raised and (ii) a minimum of 35% of equity capital raised in excess of $25 million, after
fees and expenses, to prepay the New Promissory Note with such prepayments being applied first to the next scheduled monthly payment without acceleration of any remaining scheduled monthly payments. 
  
 5. Without GeoStar’s prior written consent, Gastar shall not effect any
reverse stock split, recapitalization or other combination that has the effect of reducing its outstanding shares of capital stock. 
  
 6. The parties each acknowledge that they have requested the law firm of Warner Norcross & Judd LLP to prepare this Agreement and the New
Promissory Note attached hereto as Exhibit B. The parties have been advised that a conflict of interest exists between their respective interests. As a result, the parties have been advised to consider seeking the advice of their own
independent counsel. Each hereby acknowledges that it had ample opportunity to do so but elected not to seek such independent advice. They further acknowledge and agree that any claim against Warner Norcross & Judd LLP regarding any
possible conflict of interest with regard to this Agreement or the New Promissory Note attached hereto as Exhibit B, or the preparation thereof, are hereby waived. 
  
 7. The laws of the State of Michigan shall govern the validity, performance and enforcement of this Agreement. 

 
 8. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together constitutes but one and the same document. Facsimile execution pages may be accepted as originals. 
  

********* 
  
 Agreed as of the date set forth in the first paragraph of this Agreement. 
  

			
	
	GEOSTAR CORPORATION
	
	 /s/ JOHN W. PARROTT

	By:	 	John W. Parrott, VP
	Its:	 	  

  

 - 2 - 

			
	GASTAR EXPLORATION, LTD.
	
	 /s/ J. Russell Porter

	By:	 	J. Russell Porter
	Its:	 	President & CEO
	
	FIRST SOURCENERGY WYOMING,INC.
	
	 /s/ J. Russell Porter

	By:	 	J. Russell Porter
	Its:	 	President & CEO
	
	FIRST TEXAS DEVELOPMENT, INC.
	
	 /s/ J. Russell Porter

	By:	 	J. Russell Porter
	Its:	 	President & CEO

  

 - 3 -First Amendment dated September 6, 2005 to Securities Purchase Agreement

 Exhibit 4.18 
  
 FIRST AMENDMENT TO SECURITIES PURCHASE AGREEMENT 
  
 This FIRST AMENDMENT TO SECURITIES PURCHASE AGREEMENT (the “Amendment”), effective as of
September 6, 2005 (the “Effective Date”), is by and among Gastar Exploration Ltd., an Alberta corporation (the “Company”), HFTP Investment L.L.C., Gaia Offshore Master Fund, Ltd., Leonardo, L.P.,
Wayland Recovery Fund, LLC, Wayzata Recovery Fund, LLC, Cyrus Opportunities Fund, L.P., Cyrus Opportunities Fund II, L.P. (individually, a “Buyer” and, collectively, the “Buyers”). Capitalized terms
used in this Amendment but not defined herein have the meaning set forth in the SPA (as defined below) 
  
 WHEREAS, the Company and the Buyers entered into that certain Securities Purchase Agreement (the “SPA”), dated as of
June 16, 2005, in which the Company sold to the Buyers the Initial Notes and the Initial Shares; 
  
 WHEREAS, pursuant to the terms of this Amendment, the Company and the Buyers desire to amend the SPA to correct an ambiguity related to the timing
of notice of Additional Closing Dates; 
  
 NOW, THEREFORE,
in consideration of the premises and the mutual covenants contained herein and in the SPA, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally
bound, hereby agree as follows: 
  
 1. Amendment to SPA. The first
sentence of Section 1(e)(iv) of the SPA is hereby amended and restated in its entirety to read as follows (and all other portions of Section 1(e)(iv) shall remain as currently drafted and unaffected by this Amendment): 
  
 (iv) At least 15 Business Days prior to an Initial Delivery
Date (after the Initial Closing Date) or Additional Delivery Date (other than an Additional Delivery Date as an Additional Closing Date), the Company shall deliver to each Buyer a written notice via facsimile setting forth the Delivery Date and the
Trading Days that shall comprise the Pricing Period as of such Delivery Date. 
  
 2. No Additional Sale Election Notice. This Amendment shall in no way be construed as an Additional Sale Election Notice. 
  
 3. Ratification and Confirmation of SPA. The Company hereby adopts, ratifies and confirms the SPA, as amended hereby, and acknowledges and agrees that the
SPA, as amended hereby, is and remains in full force and effect. The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Buyer under the SPA or the other Transaction Documents,
nor constitute an amendment or waiver of any other provision of the Transaction Documents. All references to the SPA in any other document, instrument, agreement or writing shall hereafter be deemed to refer to the SPA as modified by this Amendment.

  

 1 

 4. Governing Law. All questions concerning the construction, validity, enforcement and interpretation of
this Amendment shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of New York. 
  
 5. Entire Agreement. The SPA, as amended by this Amendment, supersedes all other prior oral or written agreements between each Buyer, the Company, their affiliates and persons acting on their behalf with respect to the matters
discussed herein. 
  
 6. Counterparts. This Amendment may be
executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party; provided that a
facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. 
  
 7. Successors. This Amendment shall be binding upon and inure to the benefit of
the parties and their respective successors and assigns. 
  
 [SIGNATURES BEGIN ON NEXT PAGE] 
  

 2 

 IN WITNESS WHEREOF, the Company and the Buyers have executed this Amendment as of the Effective
Date. 
  

					
	The Company:
	
	GASTAR EXPLORATION LTD.
		
	 By:
	 	 /s/ J. Russell Porter

	 	 	J. Russell Porter,
	 	 	President and Chief Executive Officer
	
	Buyers:
	
	HFTP INVESTMENT L.L.C.
		
	 By:
	 	 Promethean Asset Management L.L.C.,
 its
Investment Manager

			
	 	 	By:	 	 /s/ Robert J. Brantman

	 	 	Name:	 	 Robert J. Brantman

	 	 	Title:	 	 Partner and Authorized Signatory

	
	GAIA OFFSHORE MASTER FUND, LTD.
		
	By:	 	 Promethean Asset Management L.L.C.,
 its
Investment Manager

			
	 	 	By:	 	 /s/ Robert J. Brantman

	 	 	Name:	 	 Robert J. Brantman

	 	 	Title:	 	 Partner and Authorized Signatory

	
	LEONARDO, L.P.
		
	 By:
	 	 Leonardo Capital Management, Inc.,
 its
general partner

		
	 By:
	 	 Angelo, Gordon & Co., L.P.,
 its
director

			
	 	 	 By:
	 	 /s/ Joseph R. Weskselblatt

	 	 	 Name:
	 	 Joseph R. Weskselblatt

	 	 	Title:	 	 Authorized Signatory

  

 3 

					
	WAYLAND RECOVERY FUND, LLC
		
	By:	 	 Wayzata Investment Partners LLC,
 its
Manager

			
	 	 	By:	 	 /s/ Joseph M. Delgnan

	 	 	Name:	 	 Joseph M. Delgnan

	 	 	Title:	 	 Authorized Signatory

	
	WAYZATA RECOVERY FUND, LLC
		
	By:	 	 Wayzata Investment Partners LLC,
 its
Manager

			
	 	 	By:	 	 /s/ Joseph M. Delgnan

	 	 	Name:	 	 Joseph M. Delgnan

	 	 	Title:	 	 Authorized Signatory

	
	CYRUS OPPORTUNITIES FUND, L.P.
		
	 By:
	 	 Cyrus Capital Partners, L.P.,
 its
investment manager

		
	 By:
	 	 Cyrus Capital Partners GP, LLC,
 its
general partner

			
	 	 	By:	 	 /s/ Robert A. Nisi

	 	 	Name:	 	 Robert A. Nisi

	 	 	Title:	 	 General Counsel, Partner

	
	CYRUS OPPORTUNITIES FUND II, L.P.
		
	 By:
	 	 Cyrus Capital Partners, L.P.,
 its
investment manager

		
	 By:
	 	 Cyrus Capital Partners GP, LLC,
 its
general partner

			
	 	 	By:	 	 /s/ Robert A. Nisi

	 	 	Name:	 	 Robert A. Nisi

	 	 	Title:	 	 General Counsel, Partner

  

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