Document:

Waiver under Credit Agreement - Wayzata Investment Partners LLC

 Exhibit 10.32 
  
  
 WAIVER UNDER CREDIT AGREEMENT 

among 
 GASTAR EXPLORATION USA,
INC., 
 GASTAR EXPLORATION LTD., 
 THE LENDERS SIGNATORY HERETO 
 and 
 WAYZATA INVESTMENT PARTNERS LLC, 
 as Administrative Agent 
 Effective 
 March 13, 2009 

  
  

 TABLE OF CONTENTS 
  

					
	Article I DEFINITIONS AND INTERPRETATION	  	1
	1.1	  	Terms Defined Above	  	1
	1.2	  	Terms Defined in Credit Agreement	  	1
	1.3	  	References	  	1
	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	  	2
		
	Article III REPRESENTATIONS AND WARRANTIES	  	2
		
	Article IV RATIFICATION AND ACKNOWLEDGMENTS	  	3
		
	Article V MISCELLANEOUS	  	3
	5.1	  	Successors and Assigns	  	3
	5.2	  	Rights of Third Parties	  	3
	5.3	  	Counterparts	  	3
	5.4	  	Integration	  	3
	5.5	  	Severability	  	3
	5.6	  	Governing Law	  	3

  

 i 

 WAIVER UNDER CREDIT AGREEMENT 
 This WAIVER UNDER CREDIT AGREEMENT (this “Waiver”) executed effective as of March 13, 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”), the lenders party to that certain Credit Agreement dated
effective February 16, 2009 by and among the Borrower, the Parent, the lenders party thereto or bound thereby from time to time (the “Lenders”), and Wayzata Investment Partners LLC, as administrative agent for the Lenders (in
such capacity, the “Agent”) (as amended to the Effective Date, the “Credit Agreement”). 
 W I
T N E S S E T H: 
 WHEREAS, the Borrower, the Parent, the Lenders and the Agent are
parties to the Credit Agreement; and 
 WHEREAS, the Borrower and the Parent have requested that the Agent and the Lenders waive any default
or right to exercise any remedy as a result of the inability of the Borrower and the Parent to meet the current ratio requirements as required by Section 7.14 of the Credit Agreement; 
 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 Waiver Under Credit Agreement, each of the
terms “Agent,” “Borrower,” “Credit Agreement,” “Effective Date,” Lenders,” “Parent” and “Waiver” 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 Waiver to Exhibit, Article or Section numbers shall be to Exhibits, Articles or Sections of this Waiver, unless expressly stated to the contrary. References in this Waiver to “hereby,”
“herein,” “hereinafter,” “hereinabove,” “hereinbelow,” “hereof,” “hereunder” and words of similar import shall be to this Waiver 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 Waiver 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 Waiver to “writing” include printing, typing, lithography, facsimile reproduction,
and other means of 

 
reproducing words in a tangible visible form. References in this Waiver 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
Waiver. References in this Waiver to Persons include their respective successors and permitted assigns. 
 1.4 Articles and Sections.
This Waiver, 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 Waivers. The Agent
and the Lenders waive any Default or Event of Default under the Credit Agreement or any other Loan Document, together with the right of the Agent or the Lenders to exercise any remedy based thereon, as a result of, and agree that no breach of the
Credit Agreement or any other Loan Document shall arise, including any breach of Section 7.14 of the Credit Agreement, from any failure of the ratio of Current Assets to Current Liabilities to be less than 1.00 to 1.00 determined as of the end
of any quarter of the fiscal year of the Parent ending on December 31, 2009. 
 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 
 REPRESENTATIONS AND WARRANTIES 
 Each
of the Borrower and other Restricted Persons expressly re-makes, in favor of the Agent and the Lenders, each of the representations and warranties set forth in Article V 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. 
  

 - 2 - 

 ARTICLE IV 
 RATIFICATION AND ACKNOWLEDGMENTS 
 Each of the Borrower, the Parent, 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. 
 ARTICLE V 
 MISCELLANEOUS 
 5.1 Successors and Assigns. This Waiver 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. 
 5.2 Rights of Third Parties. Except as provided in Section 5.1, all provisions herein are imposed solely and exclusively for the benefit of the parties hereto. 
 5.3 Counterparts. This Waiver 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 Waiver containing a set of counterpart execution pages reflecting the execution of each party hereto shall be sufficient to reflect the execution of this Waiver by each necessary party hereto
and shall constitute one instrument. 
 5.4 Integration. This Waiver 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 Waiver. 
 5.5 Severability. In the event that any one or more of the provisions contained in this Waiver 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 Waiver. 
 5.6 Governing Law. THIS
WAIVER 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 MINNESOTA, WITHOUT REGARD TO PRINCIPLES OF SUCH LAWS RELATING
TO CONFLICTS OF LAW. 
 (Signatures appear on following pages)

  

 - 3 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Waiver under Credit Agreement to be duly executed
and delivered, as of the Effective Date, by their proper and duly authorized officers. 
  

			
	BORROWER:
	
	GASTAR EXPLORATION USA, INC.
		
	By:	 	 /S/ MICHAEL A. GERLICH

		 	Michael A. Gerlich
		 	Secretary and Treasurer

  

			
	PARENT:
	
	GASTAR EXPLORATION LTD.
		
	 By:
	 	 /S/ MICHAEL A. GERLICH

		 	Michael A. Gerlich
		 	Vice President and
		 	Chief Financial Officer

 (Signatures continue on following page) 
  

 - 4 - 

					
	AGENT:
	
	WAYZATA INVESTMENT PARTNERS LLC,
as Agent
		
	By:	 	 /S/ BLAKE CARLSON

		 	Blake Carlson
		 	Authorized Signatory
	
	LENDER:
	
	WAYZATA OPPORTUNITIES FUND, LLC,
as Lender
		
	By:	 	Wayzata Investment Partners LLC,
its Manager
			
		 	By:	 	 /S/ BLAKE CARLSON

		 		 	Blake Carlson
		 		 	Authorized Signatory
		 		 	

  

 - 5 -Directors Compensation and Travel Expense Reimbursement Policy

 Exhibit 10.5 
 Board Approved 
 November 13, 2008 
 Federal Home Loan Bank of Indianapolis 
 Directors’ Compensation and
Travel Expense Reimbursement Policy 
 Effective January 1, 2009 
 Annual Director Fees 
 The annual director fees will be split in half in the form of an annual
retainer fee with the other half being paid based on attendance. The retainer and attendance fees will be paid quarterly, on or about the end of each quarter. The director will be paid a per-day fee for each day a director spends at an in-person
meeting of the Board or its committees. The annual fee schedule for 2009 is summarized as follows: 
  

												
	 	  	Total
Estimated
Annual
Fee	  	Quarterly
Retainer	  	Per-Day
Attendance
Fee	  	Additional
Annual
Committee Chair
Fees
	 Chair
	  	$	60,000	  	$	7,500	  	$	2,500	  	$10,000 Finance
Committee
	 Vice Chair
	  	$	55,000	  	$	6,875	  	$	2,291	  	$10,000 Audit
Committee
	 Director
	  	$	45,000	  	$	5,625	  	$	1,875	  	$5,000 Other
Committees

 Per-Day Fees Defined 
 Per-day attendance fee will be paid for each day, or partial day, that a director attends an in-person meeting of the Board or its committees. Per-day fee payments will also include pre-scheduled director orientations
and FHLBank System meetings, including the Council of FHLBanks. Bank webinar meetings and member marketing meetings are not included in the per-day fee. Cancellations by the Bank due to inclement weather or other circumstances beyond a
director’s control (except illness) will be reimbursed as a regular per-day meeting fee. 
 Except as provided below, attendance by
conference call for Board or committee meetings will not be eligible for reimbursement. 
 Timing of Fee Payments 
 Fees shall be paid quarterly on or about the last day of each March, June, September and December and shall be paid to the Director, or to the Bank’s
Director Deferred Compensation Plan upon timely election by the Director, or to the Director’s employer pursuant to the terms of the employer’s authorized charitable contribution plan. Annual Committee Chair fees shall be paid pro-rata on
a quarterly basis, and to be eligible for a Committee Chair fee the Director must be designated by the Board as Chair as of the last day of the quarter. Directors retiring or resigning from the Board shall be entitled to a pro-rata payment (measured
monthly) of their quarterly retainer. 
  

 -1- 

 Exhibit 10.5 
 Board Approved 
 November 13, 2008 
  
 Attendance Hardship Provision 
 If a director is unable to attend enough of the meetings of the Board or its committees in order to receive the full annual fee payment, the director may petition the Board for consideration of payment based on
hardship. The Human Resources committee will review the petition and will make recommendation to the Board on whether to make a hardship payment. Hardship will not include other ordinary business commitments. The Board and Human Resources committee
will consider such petitions on a case-by-case basis. 
 As part of the hardship provision, the Board may reimburse attendance for Board or
committee meeting conference calls (limited to $250 per call per day) and other special meetings attended on behalf of the Bank throughout the year. 
 Travel Expense Reimbursement 
 Travel expense reimbursement will be provided for board meetings, committee meetings,
director orientation, director educational seminars, or member events scheduled concurrently with board meetings, Federal Housing Finance Agency System meetings, Council of Federal Home Loan Bank meetings, Community Investment Conference meetings,
or Bank marketing meetings. Travel expenses include reasonable transportation, food, hotel expenses, and reasonable long-distance telephone and internet charges. 
 Expense Procedures 
  

	1.	No gift or entertainment expenses initiated by a director shall be reimbursed without being prearranged by the Bank. Each director should review the Bank’s Code of Conduct
concerning gift and entertainment restrictions. 

  

	2.	To qualify for reimbursement, all eligible expenses incurred must be submitted for payment to the Bank within 12 months of the date that the expenses were incurred. This requirement
may be waived, at the discretion of the Senior Vice President-Chief Financial Officer or by the Senior Vice President-Chief Accounting Officer, in the event of an error or omission. 

 Spouse/Guest Travel (Two Events per Year) 
 Expenses of a director’s spouse or guest may be reimbursed in accordance with the Travel Expense Policy subject to a limit of two travel events per year. Spousal entertainment expenses incidental to the hotel property or event
are permitted where prearranged by the Bank, subject to two travel events per year. Income tax reporting will be made by the Bank as required by law, on spousal/guest travel if the spouse or guest attends the event without a bona fide Bank
business purpose. 
  

 -2- 

 Exhibit 10.5 
 Board Approved 
 November 13, 2008 
  
 Air Travel and First Class 
  

	1.	The Bank will pay the direct common carrier expense (as defined in paragraph 4 below) for a director between the director’s residence and the site of a Bank function and the
return. The actual cost of private air travel will not be reimbursed, but the equivalent direct common carrier expense (as defined in paragraph 4 below) may be substituted. 

  

	2.	The Bank will pay for a director and spouse or guest first-class air travel for two trips per year over 1.5 hours in flight time. Additional first-class travel is not allowed,
unless required due to scheduling or flight availability. 

  

	3.	If a director’s non-Bank activity requires a route to attend a Bank function which originates or terminates in a location other than the place of residence, the Bank will
reimburse the director an amount equal to the direct common carrier expense from the director’s location to the location of the Bank function and then to the director’s next intended destination (without regard to stops named as temporary
layovers), subject to a limit of an amount not to exceed two times the direct common carrier expense to the board meeting location and from the director’s residence and return to his residence. 

  

	4.	The “direct common carrier expense” shall be the regular market-rate coach or first-class fare as applicable, and should be documented by the director submitting an
expense report. The direct common carrier expense will also include any reasonable fees associated with air travel, including baggage fees and airport fees. These items should be documented by the director and included in the expense report. Travel
scheduling affecting the direct common carrier expense shall be reasonable, given the timing of the meetings. 

 Issues of Interpretation

 Unless expressly provided herein or in 12 CFR Part 918 (as amended), the Bank’s current Travel Policy as contained in the
Employee Manual shall control with respect to the travel expense reimbursement. The Federal Housing Finance Agency’s former Director Travel Policy (FHFB Resolution 93-12) is superseded, but may be used as non-binding precedent should issues of
interpretation arise. The General Counsel, Senior Vice President-CFO, and Senior Vice President-Chief Accounting Officer are authorized, in their respective reasonable discretion, to interpret the provisions of the policy and to address situations
not anticipated by the policy, consistent with the requirements set forth in the statute or the regulations promulgated by the Federal Housing Finance Agency. 
 Human Resources Committee Annual Review 
 The Human Resources Committee shall annually review this policy and shall
submit its recommendation to the board for approval no later than the last regularly scheduled meeting of the board for the year. 
  

 -3-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}]]