Document:

Exhibit 10.1

 

SETTLEMENT AGREEMENT AND MUTUAL
RELEASE

 

This Settlement
Agreement and Mutual Release (this “Agreement”) is made and entered into as of the 5th day of September, 2014 (the
“Effective Date”), by and between Hanover Holdings I, LLC, a New York limited liability company
(“Plaintiff”) on the one hand and Solar Wind Energy Tower, Inc. f/k/a  Clean Wind Energy Tower, Inc., a Nevada
corporation (“Defendant”) on the other hand (Plaintiff and Defendant are collectively referred to as the
“Parties” and each separately is referred to as a “Party”).

 

WHEREAS, Plaintiff
commenced an action in the Supreme Court of the State of New York, County of New York, against Defendant, Index No. 654541/12,
asserting various causes of action (the “Action”); and

 

WHEREAS, the Parties
desire to avoid the expense, disruption and uncertainty of further litigation by settling all claims asserted or that could have
been asserted by the Plaintiff against the Defendant and by the Defendant against the Plaintiff.

 

NOW, THEREFORE,
in consideration of the premises, mutual promises, representations and obligations contained herein, and other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged by each of the Parties, the Parties agree as follows:

 

1.       Settlement
Amount. In exchange for the releases and other promises and covenants set forth in this Agreement, Defendant agrees to pay
to Plaintiff, in the manner and method described herein, the total sum of Ninety Thousand Dollars ($90,000.00) (the “Settlement
Sum”).

 

	a.		The Settlement Sum shall be paid in six equal installments of Fifteen Thousand Dollars
($15,000.00) each, by electronic wire to the trust account of Robinson Brog Leinwand Greene Genovese & Gluck as attorneys
for Plaintiff.

	 		 

	b.		The initial payment shall be delivered on or before September 5, 2014; thereafter,
the five subsequent payments shall be delivered on or before the fifth day of each month, with the final payment being made on
February 5, 2015.

	 		 

	c.		If any scheduled payment of the Settlement Sum is not
delivered when due on or before the fifth day of each month, Plaintiff shall deliver a Notice of Breach to Defendant's Counsel.
Defendant shall then have an opportunity to cure the breach, by delivering the missing payment to Plaintiff's Counsel within five
(5) business days of receipt of the Notice of Breach. If any such breach is not timely cured, (a) the total amount of the Settlement
Sum outstanding shall be accelerated (“Accelerated Sum”) and shall be delivered on or before ten (10) business days
after receipt of the Notice of Breach (“Cure Period”). In the event of Defendant’s failure to timely deliver the Accelerated
Sum within the Cure Period, Plaintiff may file the Confession of Judgment without further notice as set forth in Section 2 hereof.

 

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2.       Confession
of Judgment: Simultaneous with the execution of the Agreement, Defendant will have executed and delivered to Plaintiff, a
Confession of Judgment, in the form annexed hereto as Exhibit A, which shall be held by Robinson Brog in escrow, Upon completion
of Defendant’s payment of the Settlement Amount, Robinson Brog shall release and return the Confession of Judgment to Defendant,
and or destroy same at Defendant's option. In the event that a breach of this Agreement is not cured within the Cure Period as
set forth in paragraph 1(e) hereof; Plaintiff shall have the right, without any further notice, to file the Confession of Judgment
and have judgment entered against Defendant in amount of the Settlement Sum, plus costs associated with such filing and entry
including reasonable attorneys fees, less any payments made pursuant to the Agreement, in the Supreme Court of the State of New
York, Nevada, or any other state, in any county thereof.

 

3.       Stipulation of Discontinuance.
Upon full execution and delivery of this Agreement by the Parties, and the delivery of the Confession of Judgment to Robinson
Brog, the Parties authorize their respective counsel to execute and, as soon as practicable thereafter, file a Stipulation of
Discontinuance with Prejudice of the Action, in substantially the form annexed hereto as Exhibit B.

 

4.       Mutual Releases.

 

	(a)		Release by Plaintiff.
                                         Except or the rights and obligations specifically set forth in this Agreement, Plaintiff,
                                         for itself and its heirs, successors, predecessors, assigns, agents, attorneys, insurers,
                                         representatives, employees, officers, members and managers and any other person or entity
                                         acting or purporting to act by, through, under or in concert with them (collectively
                                         with Plaintiff, the “Plaintiff Releasors”) hereby release and discharge Defendant,
                                         the heirs of the Defendant, and, in their capacities in acting on behalf of Defendant,
                                         each of their successors, predecessors, assigns, agents, attorneys, insurers, representatives,
                                         employees, officers, directors and any other person or entity acting or purporting to
                                         act by, through, under or in concert with him, her or it, from  any and all debts, damages,
                                         liabilities, demands, obligations, costs, expenses, disputes, manner of claims, rights,
                                         actions and causes of action, whether known or unknown, vested or contingent, pursuant
                                         to federal or state statute, common law or otherwise, which either Plaintiff Releasor
                                         now owns or holds or has at any time heretofore owned or held or has asserted, or hereafter
                                         can, shall or may have or assert, for, upon or by reason of any matter, cause or thing
                                         whatsoever from the beginning of the world to the Effective Date.

 

	(b)		Release by Defendant.
                                         Except for the rights and obligations specifically set forth in this Agreement, the Defendant,
                                         for itself and its heirs, successors, predecessors, assigns, agents, attorneys, insurers,
                                         representatives, employees, officers, directors and any other person or entity acting
                                         or purporting to act by, through, under or in concert with them (collectively with the
                                         Defendant, the “Defendant Releasors”), hereby release and discharge Plaintiff
                                         and its successors, predecessors, assigns, agents, attorneys, insurers, representatives,
                                         employees, officers, members, managers and any other person or entity acting or purporting
                                         to act by, through, under or in concert with it or her, from any and all debts, damages,
                                         liabilities, demands, obligations, costs, expenses, disputes, manner of claims, rights,
                                         actions and causes of action, whether known or unknown, vested or contingent, pursuant
                                         to federal or state statute, common law or otherwise, which any Defendant Releasor now
                                         owns or holds or has at any time heretofore owned or held or has asserted, or hereafter
                                         can, shall or may have or assert, for, upon or by reason of any matter, cause or thing
                                         whatsoever from the beginning of the world to the Effective Date.

 

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5.       Non-disparagement.
Each Party agrees not to publish or communicate or cause to be published, either verbally or in writing, to any person or entity
any Disparaging (as defined below), remarks, comments or statements concerning the other Party. “Disparaging” remarks,
comments or statements are those that impugn the character, honesty, integrity, morality, business acumen or abilities of an individual
or business entity.

 

6.       Enforcement of this
Agreement. Nothing set forth herein shall preclude a Party from commencing any action the purpose of which is to enforce the
terms of this Agreement. The Parties further agree that, in the event of a breach of any of the representations, obligations or
covenants set forth in this Agreement, the non-breaching Party shall, in addition to the rights and remedies conferred by this
Agreement, have available to him, her or it all rights and remedies at law and in equity, including without limitation the right
to seek monetary damages and/or injunctive relief for any harm caused by the other Party. The reasonable legal fees and/or other
costs arising out of an alleged breach shall be borne by the breaching party if it is determined that a breach had occurred.

 

7.       Expenses. Each
Party shall bear his, her or its own legal and other expenses incurred in connection with the Action and this Agreement. No Party
shall make any claim against the others for fees, costs, and/or sanctions under the New York Civil Practice Law and Rules, applicable
law or otherwise, except claims for legal fees and costs incurred in connection with enforcement of the Agreement as set forth
in Section 6 hereof.

 

8.       No-Assignment of
Claims. Each Party represents and warrants to each other Party that he, she or it has not assigned or transferred any of his,
her or its claims in the Action or this Agreement to any person.

 

9.       Governing Law; Jurisdiction;
Venue. This Agreement shall be subject to, governed by and interpreted in accordance with, the laws of the State of New York.
Each Party (i) irrevocably submits to the exclusive jurisdiction and venue of any state or federal court sitting in the County
of New York, State of New York, for the purposes of any suit, action or other proceeding arising out of or relating in any way
to this Agreement and (ii) waives and agrees not to assert in any such proceeding a claim that he, she or it is not personally
subject to the jurisdiction of the court referred to above, that the suit or action was brought in an inconvenient forum or that
the venue of the suit or action is improper.

 

10.       Severability.
In the event any provision of this Agreement shall be held to be void, voidable, unlawful or, for any reason, unenforceable, the
remaining provisions shall remain in full force and effect. The unenforceability or invalidity of any provision of this Agreement
in one jurisdiction shall not invalidate or render that provision unenforceable in any other jurisdiction.

 

11.       Entire Agreement.
This Agreement, including Exhibit A and B attached hereto, which exhibits are expressly incorporated herein by reference,
sets forth the entire agreement between
the Parties hereto relating to the subject matter hereof and, subject to the completion of the settlement embodied herein, fully
supersedes and replaces any and all prior agreements or understandings (whether oral or written) between the Parties, all of which
are deemed null and void and of no future legal effect.

 

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12.       No Modification.
No waiver or modification of this Agreement or any term hereof shall be binding unless it is in writing and signed by all of the
Parties or their expressly authorized representatives.

 

13.       Headings. The
headings used in this Agreement are for convenience only, are not part of this Agreement, and will not alter or determine any
rights or obligations under this Agreement.

 

14.       Rule of Ambiguities.
It is agreed and understood that the general rule that ambiguities are to be construed against the drafter shall not apply to
this Agreement. In the event that any language in this Agreement is found or claimed to be ambiguous, each Party shall have the
same opportunity to present evidence as to the actual intent of the Parties with respect to any such ambiguous language without
any inference or presumption being drawn against the drafter.

 

15.       Counterparts.
This Agreement may be executed in any number of counterparts with the same effect as if the signatures were originals and upon
the same instrument. A facsimile or emailed electronic copy of a Party's signature on this Agreement shall have the same force
and effect as that Party's original signature on this Agreement.

 

16.       Notices. Any
notice or other communication given under or relating to this Agreement shall be in writing and shall be sent by (a) hand delivery;
(b) reputable overnight delivery service for next business day delivery or; (c) registered or certified United States mail (return
receipt requested), in each case with delivery charges prepaid, to the Parties at the following respective addresses (or at such
other address for a Party as shall be specified by him, her or it by like notice):

 

If to the Plaintiff:

 

Hanover Holdings I, LLC

5 Hanover Square

New York, New York 10004

(347) 491-4240

(646) 737-9948

 

With a Copy to: Robinson Brog Leinwand Greene Genovese & Gluck
P.C.

Attorney, far Plaintiff

875 Third Avenue, 9th FL

New York, New York 10022

Fax: (212) 956-2164

Email: David E. Danovitch: dedgrobinsonbrog.com
and

            Michael A. Eisenberg: maea,robinsonhrog.com

Attn,:  David E. Danovitch, Esq, and

             Michael
A. Eisenberg, Esq. 

 

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If to the Defendant:

 

Solar Wind Energy Tower

1997 Annapolis Exchange Parkway

Suite 300

Annapolis, Maryland 21401

Attention: Ronald Picket

(410) 972-4713

 

With a Copy to:

 

Ledwith & Atkinson

Attorney. .for Defendant

14 St. James Place

Lynbrook, New York 11563

Fax: (516) 593-1816

Email:
Thomas D. Atkinson: tatkinson@,1edwithatkinson.com

Attn.: Thomas D. Atkinson, Esq.

 

Notices and communications shall be effective (a) when delivered
if sent by hand delivery; (b) on the first business day following the day timely deposited for overnight delivery with Federal
Express (or other equivalent national overnight courier service); (c) on the fifth business day following the day duly sent by
certified or registered United States mail, return receipt requested.

 

17.       Certifications and Acknowledgments. Each Party hereby
certifies and acknowledge as follows:

 

(a)       The Plaintiff represents and warrants that this Agreement
and the settlement embodied herein hare been duly authorized by all necessary limited liability company action by Plaintiff and
that this Agreement has been duly executed on behalf of Plaintiff by a person duly authorized to do so, The Defendant represents
and warrants that this Agreement and the settlement embodied herein have been duly authorized by all necessary corporate action
by Defendant and has been duly executed on behalf of Defendant by a person duly authorized to do so.

 

(b)       Such Party has signed this Agreement voluntarily and knowingly
in exchange for the consideration described herein, which each acknowledges is adequate and satisfactory to such Party;

 

(c)       Such Party has consulted with his, her or its counsel prior
to signing this Agreement and has had the opportunity not to execute this Agreement and to request modifications to this Agreement
consistent with his, her or Its respective interests;

 

IN WITNESS WHEREOF, the Parties have executed this Agreement
as of the Effective Date, as evidenced by their signatures below.

 

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	HANOVER HOLDINGS I, LLC	 
	 	 
	By: /s/ Joshua Sason	DATE: _______
	        Joshua Sason, CEO	 
	 	 
	 	 
	SOLAR WIND ENERGY TOWER, INC.	 
	 	 
	By: /s/ Ronald Pickett	DATE: ______
	        Ronald Pickett	 
	        President and CEO, Chairman	 

 

 

 

 

 

 

 

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EXHIBIT A

 

	SUPREME COURT OF THE STATE OF NEW YORK	 
	COUNTY OF NEW YORK	 
		 
	 	 
	HANOVER HOLDINGS I, LLC,	 
	 	Index No 654541/12
	 	 
	 	CONFESSION OF JUDGMENT
	Plaintiff,       	 
	 	 
	-against-	 
	 	 
	CLEAN WIND ENERGY TOWER,	 
	 	 
	Defendant.       	 

 

 

	STATE OF NEW YORK	)
	 	)ss.:
	COUNTY OF New York	)

 

	1.		Ronald Pickett, being duly sworn, deposes and says:

	2.		That deponent is an individual and is the President and CEO of defendant Solar Wind
Energy Tower, Inc. f/k/a Clean Wind Energy Tower, Inc. (“Defendant”), and has the authority to make this confession
of judgment on Defendant's behalf.

	3.		Defendant hereby confesses judgment herein pursuant to CPLI4 3218 and authorizes entry
thereof against it in the sum of $90,000, plus costs and other monies Defendant is obligated to pay to Plaintiff Hanover Holdings
I, LLC (“Plaintiff”) pursuant to applicable portions, of a certain settlement agreement that is more fully described below.

	4.		Plaintiff is a New York limited liability company with its principal place of business
at 5 Hanover Square, New York, New York.

	5.		Defendant is a Nevada corporation, with a principal place of business at 997 Annapolis
Exchange Parkway, Suite 300, Annapolis; Maryland, 21401. Defendant authorizes entry of judgment in the County of New York, State
of New York and any other applicable jurisdictions.

 

    	 

    	 

    

 

	6.		The amount of $90,000.00 due and owing from Defendant to Plaintiff under this Confession
of Judgment is based upon an agreed-upon figure set forth in a settlement agreement between the parties, and which, for consideration,
Plaintiff dismissed the above captioned action with prejudice.

	7.		Defendant hereby
                                         authorizes Plaintiff to enter a judgment by confession against it pursuant to CPLR §
                                         3218 in the amount of $90,000,00, plus costs, including reasonable attorneys fees, less
                                         any payments made at the time of Defendant's failure to timely cure its breach of the
                                         settlement agreement.

	8.		Deponent has consulted with counsel on this matter. Deponent acknowledges that that
Defendant is signing this confession free of fraud, undue influence or coercion of any kind.

	9.		This confession of judgment does not relate to a consumer credit transaction.

	10.		This affidavit is not in connection with an installment purchase of $1,500 or less
of any commodities for any use other than a commercial or business purpose which is prohibited by Section 3201 of the New York
Civil Practice Law and Rules.

 

 

 

Dated: New York, New York

August ___,2014

 

	 	Solar Wind Energy Tower, Inc.

    

    By: /s/ Ronald Pickett

           Ronald Pickett, President and CEO

 

    	 

    	 

    

 

 

EXHIBIT B

 

	SUPREME COURT OF THE STATE OF NEW YORK	 
	COUNTY OF NEW YORK	 
		 
	 	 
	HANOVER HOLDINGS I, LLC,	 
	 	Index No 654541/12
	 	 
	 	STIPULATION OF DISCONTINUANCE
	Plaintiff,       	 
	 	 
	-against-	 
	 	 
	CLEAN WIND ENERGY TOWER,	 
	 	 
	Defendant.       	 

 

 

IT IS HEREBY STIPULATED AND AGREED, by and between the undersigned
attorneys for all of the parties that have appeared herein, that whereas no party hereto is an infant, incompetent person for whom
a committee has been appointed or conservatee, and no person not a party has an interest in the subject matter of the action, this
action be and the same is hereby discontinued with prejudice and without costs to any party. This stipulation may be filed without
further notice with the Clerk of the Court.

 

Dated: New York, New York

            August
__, 2014

 

 

	ROBINSON BROG LEINWAND GREENE GENOVESE & GLUCK P.C.

	LEDWITH & ATKINSON
	 	 
	By: /s/ Michael A. Eisenbert	By: Thomas D.Atkinson
	Michael
A. Eisenberg

875 Third Avenue, 9th FL

New York, New York 10022

(212) 603-6300

Attorney for Plaintiff 

	Thomas
D. Atkinson

14 St. James Place

Lynbrook, New York 11563

(516) 593-1771

Attorney for DefendantEx 10.1 GastarIndemnificationAgreementFormof

Exhibit 10.1

FORM OF INDEMNIFICATION AGREEMENT

This Indemnification Agreement (this “Agreement”), dated as of                    , is by and between Gastar Exploration Inc., a Delaware corporation (the “Company”) and                   (the “Indemnitee”).
WHEREAS, Indemnitee is a director and/or officer of the Company;
WHEREAS, both the Company and Indemnitee recognize the increased risk of litigation and other claims being asserted against directors and officers of public companies; 
WHEREAS, the board of directors of the Company (the “Board”) has determined that enhancing the ability of the Company to retain and attract as directors and officers the most capable persons is in the best interests of the Company and that the Company therefore should seek to assure such persons that indemnification and insurance coverage is available; and
WHEREAS, in recognition of the need to provide Indemnitee with substantial protection against personal liability, in order to procure Indemnitee’s continued service as a director and/or officer of the Company and to enhance Indemnitee’s ability to serve the Company in an effective manner, and in order to provide such protection pursuant to express contract rights (intended to be enforceable irrespective of, among other things, any amendment to the Company’s certificate of incorporation or bylaws (collectively, the “Constituent Documents”), any change in the composition of the Board or any change in control or business combination transaction relating to the Company), the Company wishes to provide in this Agreement for the indemnification of, and the advancement of Expenses (as defined in 1(f) below) to, Indemnitee as set forth in this Agreement and to the extent insurance is maintained for the continued coverage of Indemnitee under the Company’s directors' and officers' liability insurance policies.
NOW, THEREFORE, in consideration of the foregoing and the Indemnitee’s agreement to continue to provide services to the Company, the parties agree as follows:
1.Definitions. For purposes of this Agreement, the following terms shall have the following meanings:

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(a)    “Beneficial Owner” has the meaning given to the term “beneficial owner” in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
(b)    “Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in Houston, Texas are authorized or required by law to be closed.
(c)    “Change in Control” means the occurrence after the date of this Agreement of any of the following events:
(i)    any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 30% or more of the Company’s then outstanding Voting Securities unless the change in relative Beneficial Ownership of the Company’s securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors;
(ii)    the consummation of a reorganization, merger or consolidation, unless immediately following such reorganization, merger or consolidation, all of the Beneficial Owners of the Voting Securities of the Company immediately prior to such transaction beneficially own, directly or indirectly, more than 50% of the combined voting power of the outstanding Voting Securities of the entity resulting from such transaction;
(iii)    during any period of two consecutive years, not including any period prior to the execution of this Agreement, individuals who at the beginning of such period constituted the Board (including for this purpose any new directors whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved) cease for any reason to constitute at least a majority of the Board; or
(iv)    the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets.
(d)    “Claim” means:
(i)    any threatened, pending or completed action, suit, proceeding or alternative dispute resolution mechanism, whether civil, criminal, administrative, 

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arbitrative, investigative or other, and whether made pursuant to federal, state or other law; or
(ii)    any inquiry, hearing or investigation that the Indemnitee determines might lead to the institution of any such action, suit, proceeding or alternative dispute resolution mechanism.
(e)    “Delaware Court” shall have the meaning ascribed to it in Section 8(e) below. 
(f)    “Disinterested Director” means a director of the Company who is not and was not a party to the Claim in respect of which indemnification is sought by Indemnitee.
(g)    “Expenses” means any and all expenses, including attorneys’ and experts’ fees, court costs, transcript costs, travel expenses, duplicating, printing and binding costs, telephone charges, and all other costs and expenses incurred in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness or participate in, any Claim. Expenses also shall include (i) Expenses incurred in connection with any appeal resulting from any Claim, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 4 only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement, by litigation or otherwise. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee. The parties agree that for the purposes of any advancement of Expenses for which Indemnitee has made written demand to the Company in accordance with this Agreement, all Expenses included in such demand that are certified by affidavit of Indemnitee’s counsel as being reasonable shall be presumed conclusively to be reasonable. “Expense Advance” means any payment of Expenses advanced to Indemnitee by the Company pursuant to Section 3 or Section 4 hereof.
(h)    “Indemnifiable Event” means any event or occurrence, whether occurring before, on or after the date of this Agreement, related to the fact that Indemnitee is or was a director, officer, employee or agent of the Company or any subsidiary of the Company, or is or was serving at the request of the Company as a director, officer, employee, member, manager, trustee or agent of any other corporation, limited liability company, partnership, joint venture, trust or other entity or enterprise (collectively with the Company and its subsidiaries, “Enterprise”) or by reason of an action or inaction by Indemnitee in any such 

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capacity (whether or not serving in such capacity at the time any Loss is incurred for which indemnification can be provided under this Agreement).
(i)    “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently performs, nor in the past three years has performed, services for either: (i) the Company or Indemnitee (other than in connection with matters concerning Indemnitee under this Agreement or of other indemnitees under similar agreements) or (ii) any other party to the Claim giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.
(j)    “Losses” means any and all Expenses, damages, losses, liabilities, judgments, fines, penalties (whether civil, criminal or other), ERISA excise taxes, amounts paid or payable in settlement, including any interest, assessments, any federal, state, local or foreign taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement and all other charges paid or payable in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness or participate in, any Claim.
(k)    “Person” means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust, business association, organization, governmental entity or other entity and includes the meaning set forth in Sections 13(d) and 14(d) of the Exchange Act. 
(l)    “Standard of Conduct Determination” shall have the meaning ascribed to it in Section 8(b) below. 
(m)    “Voting Securities” means any securities of the Company that vote generally in the election of directors. 
2.    Indemnification. Subject to Section 8 and Section 9 of this Agreement, the Company shall indemnify Indemnitee, to the fullest extent permitted by the laws of the State of Delaware in effect on the date hereof, or as such laws may from time to time hereafter be amended to increase the scope of such permitted indemnification, against any and all Losses if Indemnitee was or is or becomes a party to or participant in, or is threatened to be made a party to or participant in, any Claim by reason of or arising in part out of an Indemnifiable 

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Event, including, without limitation, Claims brought by or in the right of the Company, Claims brought by third parties, and Claims in which the Indemnitee is solely a witness.
3.    Advancement of Expenses. Indemnitee shall have the right to advancement by the Company, prior to the final disposition of any Claim by final adjudication to which there are no further rights of appeal, of any and all Expenses actually and reasonably paid or incurred by Indemnitee in connection with any Claim arising out of an Indemnifiable Event. Indemnitee’s right to such advancement is not subject to the satisfaction of any standard of conduct. Without limiting the generality or effect of the foregoing, within 10 Business Days after any request by Indemnitee, the Company shall, in accordance with such request, (a) pay such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to pay such Expenses, or (c) reimburse Indemnitee for such Expenses. In connection with any request for Expense Advances, Indemnitee shall not be required to provide any documentation or information to the extent that the provision thereof would undermine or otherwise jeopardize attorney-client privilege. Execution and delivery to the Company of this Agreement by Indemnitee constitutes an undertaking by the Indemnitee to repay any amounts paid, advanced or reimbursed by the Company pursuant to this Section 3 in respect of Expenses relating to, arising out of or resulting from any Claim in respect of which it shall be determined, pursuant to Section 8, following the final disposition of such Claim, that Indemnitee is not entitled to indemnification hereunder.  No other form of undertaking shall be required other than the execution of this Agreement. Indemnitee’s obligation to reimburse the Company for Expense Advances shall be unsecured and no interest shall be charged thereon.
4.    Indemnification for Expenses in Enforcing Rights. To the fullest extent allowable under applicable law, the Company shall also indemnify against, and, if requested by Indemnitee, shall advance to Indemnitee subject to and in accordance with Section 3, any Expenses actually and reasonably paid or incurred by Indemnitee in connection with any action or proceeding by Indemnitee for (a) indemnification or reimbursement or advance payment of Expenses by the Company under any provision of this Agreement, or under any other agreement or provision of the Constituent Documents now or hereafter in effect relating to Claims relating to Indemnifiable Events, and/or (b) recovery under any directors’ and officers’ liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification or insurance recovery, as the case may be. Indemnitee shall be required to reimburse the Company in the event that a final judicial determination is made that such action brought by Indemnitee was frivolous or not made in good faith. 

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5.    Partial Indemnity. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for a portion of any Losses in respect of a Claim related to an Indemnifiable Event but not for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.
6.    Notification and Defense of Claims.
(a)    Notification of Claims. Indemnitee shall notify the Company in writing as soon as practicable of any Claim which could relate to an Indemnifiable Event or for which Indemnitee could seek Expense Advances, including a brief description (based upon information then available to Indemnitee) of the nature of, and the facts underlying, such Claim. The failure by Indemnitee to timely notify the Company hereunder shall not relieve the Company from any liability hereunder unless the Company’s ability to participate in the defense of such claim was materially and adversely affected by such failure. If, at the time of the receipt of such notice, the Company has directors’ and officers’ liability insurance in effect under which coverage for Claims related to Indemnifiable Events is potentially available, the Company shall give prompt written notice to the applicable insurers in accordance with the procedures set forth in the applicable policies. The Company shall provide to Indemnitee a copy of such notice delivered to the applicable insurers, and copies of all subsequent correspondence between the Company and such insurers regarding the Claim, in each case substantially concurrently with the delivery or receipt thereof by the Company.
(b)    Defense of Claims. The Company shall be entitled to participate in the defense of any Claim relating to an Indemnifiable Event at its own expense and, except as otherwise provided below, to the extent the Company so wishes, it may assume the defense thereof with counsel reasonably satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election to assume the defense of any such Claim, the Company shall not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently directly incurred by Indemnitee in connection with Indemnitee’s defense of such Claim other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ its own legal counsel in such Claim, but all Expenses related to such counsel incurred after notice from the Company of its assumption of the defense shall be at Indemnitee’s own expense; provided, however, that if (i) Indemnitee’s employment of its own legal counsel has been authorized by the Company, (ii) Indemnitee has reasonably determined that there may be a conflict of interest between Indemnitee and the Company in the defense of such Claim, (iii) after a Change in Control, Indemnitee’s 

6

employment of its own counsel has been approved by the Independent Counsel or (iv) the Company shall not in fact have employed counsel to assume the defense of such Claim, then Indemnitee shall be entitled to retain its own separate counsel (but not more than one law firm plus, if applicable, local counsel in respect of any such Claim) and all Expenses related to such separate counsel shall be borne by the Company.
7.    Procedure upon Application for Indemnification. In order to obtain indemnification pursuant to this Agreement, Indemnitee shall submit to the Company a written request therefor, including in such request such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of the Claim, provided that documentation and information need not be so provided to the extent that the provision thereof would undermine or otherwise jeopardize attorney-client privilege. Indemnification shall be made insofar as the Company determines Indemnitee is entitled to indemnification in accordance with Section 8 below. 
8.    Determination of Right to Indemnification.
(a)    Mandatory Indemnification; Indemnification as a Witness. 
(i)    To the extent that Indemnitee shall have been successful on the merits or otherwise in defense of any Claim relating to an Indemnifiable Event or any portion thereof or in defense of any issue or matter therein, including without limitation dismissal without prejudice, Indemnitee shall be indemnified against all Losses relating to such Claim in accordance with Section 2 to the fullest extent allowable by law. 
(ii)    To the extent that Indemnitee’s involvement in a Claim relating to an Indemnifiable Event is to prepare to serve and serve as a witness, and not as a party, the Indemnitee shall be indemnified against all Losses incurred in connection therewith to the fullest extent allowable by law.
(b)    Standard of Conduct. To the extent that the provisions of Section 8(a) are inapplicable to a Claim related to an Indemnifiable Event that shall have been finally disposed of, any determination of whether Indemnitee has satisfied any applicable standard of conduct under Delaware law that is a legally required condition to indemnification of Indemnitee hereunder against Losses relating to such Claim and any determination that Expense Advances must be repaid to the Company (a “Standard of Conduct Determination”) shall be made as follows:  

7

(i)    if no Change in Control has occurred, (A) by a majority vote of the Disinterested Directors, even if less than a quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum or (C) if there are no such Disinterested Directors, by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered to Indemnitee; and
(ii)    if a Change in Control shall have occurred, (A) if the Indemnitee so requests in writing, by a majority vote of the Disinterested Directors, even if less than a quorum of the Board or (B) otherwise, by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered to Indemnitee. 
The Company shall indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within 10 days of such request, any and all Expenses incurred by Indemnitee in cooperating with the person or persons making such Standard of Conduct Determination.
(c)    Making the Standard of Conduct Determination. The Company shall use its reasonable best efforts to cause any Standard of Conduct Determination required under Section 8(b) to be made as promptly as practicable. If the person or persons designated to make the Standard of Conduct Determination under Section 8(b) shall not have made a determination within 30 days after the later of (A) receipt by the Company of a written request from Indemnitee for indemnification pursuant to Section 7 (the date of such receipt being the “Notification Date”) and (B) the selection of an Independent Counsel, if such determination is to be made by Independent Counsel, then Indemnitee shall be deemed to have satisfied the applicable standard of conduct; provided that such 30-day period may be extended for a reasonable time, not to exceed an additional 10 days, if the person or persons making such determination in good faith requires such additional time to obtain or evaluate information relating thereto. Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement of Indemnitee to indemnification under this Agreement shall be required to be made prior to the final disposition of any Claim.
(d)    Payment of Indemnification. If, in regard to any Losses:
(i)    Indemnitee shall be entitled to indemnification pursuant to 
 
Section 8(a);  

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(ii)    no Standard Conduct Determination is legally required as a condition to indemnification of Indemnitee hereunder; or  
(iii)    Indemnitee has been determined or deemed pursuant to Section 8(b) or Section 8(c) to have satisfied the Standard of Conduct Determination,  
then the Company shall pay to Indemnitee, within 5 Business Days after the later of (A) the Notification Date or (B) the earliest date on which the applicable criterion specified in clause (i), (ii) or (iii) is satisfied, an amount equal to such Losses.
(e)    Selection of Independent Counsel for Standard of Conduct Determination. If a Standard of Conduct Determination is to be made by Independent Counsel pursuant to Section 8(b)(i), the Independent Counsel shall be selected by the Board of Directors, and the Company shall give written notice to Indemnitee advising him of the identity of the Independent Counsel so selected. If a Standard of Conduct Determination is to be made by Independent Counsel pursuant to Section 8(b)(ii), the Independent Counsel shall be selected by Indemnitee, and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either case, Indemnitee or the Company, as applicable, may, within 5 Business Days after receiving written notice of selection from the other, deliver to the other a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not satisfy the criteria set forth in the definition of “Independent Counsel” in Section 1(i), and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person or firm so selected shall act as Independent Counsel. If such written objection is properly and timely made and substantiated, (i) the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit; and (ii) the non-objecting party may, at its option, select an alternative Independent Counsel and give written notice to the other party advising such other party of the identity of the alternative Independent Counsel so selected, in which case the provisions of the two immediately preceding sentences, the introductory clause of this sentence and numbered clause (i) of this sentence shall apply to such subsequent selection and notice. If applicable, the provisions of clause (ii) of the immediately preceding sentence shall apply to successive alternative selections. If no Independent Counsel that is permitted under the foregoing provisions of this Section 8(e) to make the Standard of Conduct Determination shall have been selected within 20 days after the Company gives its initial notice pursuant to the first sentence of this Section 8(e) or Indemnitee gives its initial notice pursuant to the second 

9

sentence of this Section 8(e), as the case may be, either the Company or Indemnitee may petition the Court of Chancery of the State of Delaware (“Delaware Court”) to resolve any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or to appoint as Independent Counsel a person to be selected by the Court or such other person as the Court shall designate, and the person or firm with respect to whom all objections are so resolved or the person or firm so appointed will act as Independent Counsel. In all events, the Company shall pay all of the reasonable fees and expenses of the Independent Counsel incurred in connection with the Independent Counsel’s determination pursuant to Section 8(b).
(f)    Presumptions and Defenses. 
(i)    Indemnitee’s Entitlement to Indemnification. In making any Standard of Conduct Determination, the person or persons making such determination shall presume that Indemnitee has satisfied the applicable standard of conduct and is entitled to indemnification, and the Company shall have the burden of proof to overcome that presumption and establish that Indemnitee is not so entitled. Any Standard of Conduct Determination that is adverse to Indemnitee may be challenged by the Indemnitee in the Delaware Court. No determination by the Company (including by its directors or any Independent Counsel) that Indemnitee has not satisfied any applicable standard of conduct may be used as a defense to any legal proceedings brought by Indemnitee to secure indemnification or reimbursement or advance payment of Expenses by the Company hereunder or create a presumption that Indemnitee has not met any applicable standard of conduct.
(ii)    Reliance as a Safe Harbor. For purposes of this Agreement, and without creating any presumption as to a lack of good faith if the following circumstances do not exist, Indemnitee shall be deemed to have acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company if Indemnitee’s actions or omissions to act are taken in good faith reliance upon the records of the Company, including its financial statements, or upon information, opinions, reports or statements furnished to Indemnitee by the officers or employees of the Company or any of its subsidiaries in the course of their duties, or by committees of the Board or by any other Person (including legal counsel, accountants and financial advisors) as to matters Indemnitee reasonably believes are within such other Person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Company. In addition, the knowledge and/or actions, or failures to act, of any director, officer, agent 

10

or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnity hereunder.
(iii)    No Other Presumptions. For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, will not create a presumption that Indemnitee did not meet any applicable standard of conduct or have any particular belief, or that indemnification hereunder is otherwise not permitted.
(iv)    Defense to Indemnification and Burden of Proof. It shall be a defense to any action brought by Indemnitee against the Company to enforce this Agreement (other than an action brought to enforce a claim for Losses incurred in defending against a Claim related to an Indemnifiable Event in advance of its final disposition) that it is not permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed. In connection with any such action or any related Standard of Conduct Determination, the burden of proving such a defense or that the Indemnitee did not satisfy the applicable standard of conduct shall be on the Company.
(v)    Resolution of Claims. The Company acknowledges that a settlement or other disposition short of final judgment may be successful on the merits or otherwise for purposes of Section 8(a)(i) if it permits a party to avoid expense, delay, distraction, disruption and uncertainty. In the event that any Claim relating to an Indemnifiable Event to which Indemnitee is a party is resolved in any manner other than by adverse judgment against Indemnitee (including, without limitation, settlement of such action, claim or proceeding with our without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or otherwise for purposes of Section 8(a)(i). The Company shall have the burden of proof to overcome this presumption. 
9.    Exclusions from Indemnification. Notwithstanding anything in this Agreement to the contrary, the Company shall not be obligated to:
(a)    indemnify or advance funds to Indemnitee for Expenses or Losses with respect to proceedings initiated by Indemnitee, including any proceedings against the Company or its directors, officers, employees or other indemnitees and not by way of defense, except:

11

(iii)    proceedings referenced in Section 4 above (unless a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such proceeding was not made in good faith or was frivolous); or
(iv)    where the Company has joined in or the Board has consented to the initiation of such proceedings.
(b)    indemnify Indemnitee if a final decision by a court of competent jurisdiction determines that such indemnification is prohibited by applicable law. 
(c)    indemnify Indemnitee for the disgorgement of profits arising from the purchase or sale by Indemnitee of securities of the Company in violation of Section 16(b) of the Exchange Act, or any similar successor statute.
(d)    indemnify or advance funds to Indemnitee for Indemnitee’s reimbursement to the Company of any bonus or other incentive-based or equity-based compensation previously received by Indemnitee or payment of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements under Section 304 of the Sarbanes-Oxley Act of 2002 in connection with an accounting restatement of the Company or the payment to the Company of profits arising from the purchase or sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act).
10.    Settlement of Claims. The Company shall not be liable to Indemnitee under this Agreement for any amounts paid in settlement of any threatened or pending Claim related to an Indemnifiable Event effected without the Company’s prior written consent, which shall not be unreasonably withheld; provided, however, that if a Change in Control has occurred, the Company shall be liable for indemnification of the Indemnitee for amounts paid in settlement if an Independent Counsel has approved the settlement. The Company shall not settle any Claim related to an Indemnifiable Event in any manner that would impose any Losses on the Indemnitee without the Indemnitee’s prior written consent. 
11.    Duration. All agreements and obligations of the Company contained herein shall continue during the period that Indemnitee is a director and/or officer of the Company (or is serving at the request of the Company as a director, officer, employee, member, trustee or agent of another Enterprise) and shall continue thereafter (i) so long as Indemnitee may be subject to any possible Claim relating to an Indemnifiable Event (including any rights of appeal thereto) and (ii) throughout the pendency of any proceeding (including any rights 

12

of appeal thereto) commenced by Indemnitee to enforce or interpret his rights under this Agreement, even if, in either case, he or she may have ceased to serve in such capacity at the time of any such Claim or proceeding.
12.    Non-Exclusivity. The rights of Indemnitee hereunder will be in addition to any other rights Indemnitee may have under the Constituent Documents, the General Corporation Law of the State of Delaware, any other contract or otherwise (collectively, “Other Indemnity Provisions”); provided, however, that (a) to the extent that Indemnitee otherwise would have any greater right to indemnification under any Other Indemnity Provision, Indemnitee will be deemed to have such greater right hereunder and (b) to the extent that any change is made to any Other Indemnity Provision which permits any greater right to indemnification than that provided under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right hereunder. The Company will not adopt any amendment to any of the Constituent Documents the effect of which would be to deny, diminish or encumber Indemnitee’s right to indemnification under this Agreement or any Other Indemnity Provision.
13.    Liability Insurance. For the duration of Indemnitee’s service as a director and/or officer of the Company, and thereafter for so long as Indemnitee shall be subject to any pending Claim relating to an Indemnifiable Event, the Company shall use commercially reasonable efforts (taking into account the scope and amount of coverage available relative to the cost thereof) to continue to maintain in effect policies of directors’ and officers’ liability insurance providing coverage that is at least substantially comparable in scope and amount to that provided by the Company’s current policies of directors’ and officers’ liability insurance. In all policies of directors’ and officers’ liability insurance maintained by the Company, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are provided to the most favorably insured of the Company’s directors, if Indemnitee is a director, or of the Company’s officers, if Indemnitee is an officer (and not a director) by such policy. Upon request, the Company will provide to Indemnitee copies of all directors’ and officers’ liability insurance applications, binders, policies, declarations, endorsements and other related materials.
14.    No Duplication of Payments. The Company shall not be liable under this Agreement to make any payment to Indemnitee in respect of any Losses to the extent Indemnitee has otherwise received payment under any insurance policy, the Constituent Documents, Other Indemnity Provisions or otherwise of the amounts otherwise indemnifiable by the Company hereunder.

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15.    Subrogation. In the event of payment to Indemnitee under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee. Indemnitee shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights.
16.    Amendments. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be binding unless in the form of a writing signed by the party against whom enforcement of the waiver is sought, and no such waiver shall operate as a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. Except as specifically provided herein, no failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a waiver thereof.
17.    Binding Effect. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company), assigns, spouses, heirs and personal and legal representatives. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part of the business and/or assets of the Company, by written agreement in form and substances satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.
18.    Severability. The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any portion thereof) are held by a court of competent jurisdiction to be invalid, illegal, void or otherwise unenforceable, and the remaining provisions shall remain enforceable to the fullest extent permitted by law. Furthermore, to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of this Agreement containing any provision held to be invalid, illegal, void or otherwise unenforceable, that is not itself invalid, illegal, void or otherwise unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal, void or otherwise unenforceable.

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19.    Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand, against receipt, or mailed, by postage prepaid, certified or registered mail:
(a)    if to Indemnitee, to the address set forth on the signature page hereto. 
		
	(b)
	if to the Company, to:  

Gastar Exploration Inc.
Attn:  J. Russell Porter, President and CEO and 
Michael A. Gerlich, Senior Vice-President and CFO
1331 Lamar Street, Suite 650
Houston, Texas 77010
Notice of change of address shall be effective only when given in accordance with this Section. All notices complying with this Section shall be deemed to have been received on the date of hand delivery or on the third Business Day after mailing.
20.    Governing Law and Forum. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware applicable to contracts made and to be performed in such state without giving effect to its principles of conflicts of laws. The Company and Indemnitee hereby irrevocably and unconditionally: (a) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court and not in any other state or federal court in the United States, (b) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (c) agree that any legal service of process required by Delaware law on such party may be made pursuant to the notice provisions of Section 19 hereof or any other means authorized by Delaware law, and that such delivery shall constitute acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware and (d) waive, and agree not to plead or make, any claim that the Delaware Court lacks venue or that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

21.    Entire Agreement.  This Agreement shall supersede and replace all prior agreements (except any written agreement of employment between the Company or its predecessors, 

15

including Gastar Exploration Ltd., and the Indemnitee, which shall remain in full force and effect, except to the extent augmented or amended herein), between the Company or its predecessors, including Gastar Exploration Ltd., and the Indemnitee respecting the matters set forth herein, and shall constitute the entire agreement between the parties hereto in respect of the matters set forth herein.   
21.    Headings. The headings of the sections and paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction or interpretation thereof.
22.    Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original, but all of which together shall constitute one and the same Agreement.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

	
		
	 
	GASTAR EXPLORATION INC.

	 
	By: _____________________

Name: 
Title:   

	
		
	 
	INDEMNITEE

	 
	_____________________

Name:
Address:______________
_____________________
_____________________

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