Document:

Gastar Exploration Ltd. 2006 Long-Term Stock Incentive Plan

 Exhibit 10.11 
 GASTAR EXPLORATION LTD. 
 2006 LONG-TERM STOCK INCENTIVE PLAN 
 1. PURPOSES. The purposes of the Plan are (i) to attract and retain for the Company and its Affiliates the best available personnel,
(ii) to provide additional incentive to Employees and Directors and to increase their interest in the Company’s welfare, and (iii) to promote the success of the business of the Company and its Affiliates. 
 2. DEFINITIONS. As used herein, unless the context requires otherwise, the following terms shall have the meanings indicated below:

 (a) “Affiliate” means (i) any corporation, partnership or other entity which owns, directly or indirectly, a
majority of the voting equity securities of the Company, (ii) any corporation, partnership or other entity of which a majority of the voting equity securities or equity interest is owned, directly or indirectly, by the Company, and
(iii) with respect to an Option that is intended to be an Incentive Stock Option, (A) any “parent corporation” of the Company, as defined in Section 424(e) of the Code or (B) any “subsidiary corporation” of
the Company as defined in Section 424(f) of the Code, any other entity that is taxed as a corporation under Section 7701(a)(3) of the Code and is a member of the “affiliated group” as defined in Section 1504(a) of the Code
of which the Company is the common parent, and any other entity as may be permitted from time to time by the Code or by the Internal Revenue Service to be an employer of Employees to whom Incentive Stock Options may be granted; provided, however,
that in each case the Affiliate must be consolidated in the Company’s financial statements. 
 (b) “Award” means any
right granted under the Plan, whether granted singly or in combination, to a Grantee pursuant to the terms, conditions and limitations that the Committee may establish. 
 (c) “Award Agreement” means a written agreement with a Grantee with respect to any Award, including any amendments thereto. 
 (d) “Board” means the Board of Directors of the Company. 
 (e) “Bonus Stock Agreement” means a written agreement with a Grantee with respect to a Bonus Stock Award, including any amendments thereto. 
 (f) “Bonus Stock Award” means an Award granted under Section 8 of the Plan. 
 (g) “Change in Control” of the Company means the occurrence of any of the following events: (i) any “person” (as such
term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50 percent or more of
the combined voting power of the Company’s then outstanding securities; (ii) as a result of, or in connection with, any tender offer or exchange offer, merger, or other business combination (a “Transaction”), the persons
who were directors of the Company immediately before the Transaction shall cease to constitute a majority of the Board of Directors of the 

 
Company or any successor to the Company; (iii) the Company is merged or consolidated with another corporation and as a result of the merger or
consolidation less than 75 percent of the outstanding voting securities of the surviving or resulting corporation shall then be owned in the aggregate by the former shareholders of the Company; (iv) a tender offer or exchange offer is made and
consummated for the ownership of securities of the Company representing 50 percent or more of the combined voting power of the Company’s then outstanding voting securities; or (v) the Company transfers all or substantially all of its
assets to another corporation which is not controlled by the Company; provided, however, no Change in Control shall be deemed to occur under this Section 2(g) in connection with any transaction involving a direct or indirect wholly-owned
subsidiary of the Company. 
 (h) “Code” means the Internal Revenue Code of 1986, as amended, and any successor statute.
Reference in the Plan to any section of the Code shall be deemed to include any amendments or successor provisions to such section and any Treasury regulations promulgated under such section. 
 (i) “Committee” means the committee (or committees), as constituted from time to time, of the Board that is appointed by the Board to
administer the Plan, or if no such committee is appointed (or no such committee shall be in existence at any relevant time), the term “Committee” for purposes of the Plan shall mean the Board; provided, however, that while the Common Stock
is publicly traded, the Committee shall be a committee of the Board consisting solely of two or more Outside Directors, in accordance with Section 162(m) of the Code, and/or solely of two or more Non-Employee Directors, in accordance with Rule
16b-3, as necessary and deemed desirable by the Board from time to time in each case to satisfy such requirements with respect to Awards granted under the Plan. Within the scope of such authority, the Board or the Committee may (i) delegate to
a committee of one or more members of the Board who are not Outside Directors the authority to grant Awards to eligible persons who are either (A) not then Covered Employees and are not expected to be Covered Employees at the time of
recognition of income resulting from such Awards or (B) not persons with respect to whom the Company wishes to comply with Section 162(m) of the Code, and/or (ii) delegate to a committee of one or more members of the Board who are not
Non-Employee Directors the authority to grant Awards to eligible persons who are not then subject to Section 16 of the Exchange Act. The Board may assume any or all of the powers and responsibilities prescribed for the Committee, and to the
extent it does so, the term “Committee” as used herein shall also be applicable to the Board. 
 (j) “Common
Stock” means the Common Stock, without par value per share, of the Company or the common stock that the Company may in the future be authorized to issue (as long as the common stock varies from that currently authorized, if at all, only in
amount of par value) in replacement or substitution thereof. 
 (k) “Company” means Gastar Exploration Ltd., a corporation
governed by the laws of the Province of Alberta. 
 (l) “Continuous Service” means that the provision of services to the
Company or an Affiliate in any capacity of Employee or Director is not interrupted or terminated. Except as otherwise provided in the Award Agreement, service shall not be considered interrupted or 

  

			
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terminated for this purpose in the case of (i) any approved leave of absence, (ii) transfers among the Company, any Affiliate, or any successor, in
any capacity of Employee or Director, or (iii) any change in status as long as the individual remains in the service of the Company or an Affiliate in any capacity of Employee or Director. An approved leave of absence shall include sick leave,
military leave, or any other authorized personal leave. For purposes of each Incentive Stock Option, if such leave exceeds ninety (90) days, and re-employment upon expiration of such leave is not guaranteed by statute or contract, then the
Incentive Stock Option shall be treated as a Non-Qualified Stock Option on the day that is three (3) months and one (1) day following the expiration of such ninety (90)-day period. 
 (m) “Covered Employee” means the chief executive officer and the four other most highly compensated officers of the Company for whom
total compensation is required to be reported to shareholders under Regulation S-K, as determined for purposes of Section 162(m) of the Code. 
 (n) “Director” means a member of the Board. 
 (o) “Disability” means the “disability”
of a person (i) as defined in a then effective written employment agreement between a person and the Company or (ii) if such person is not covered by a written employment agreement with the Company, as defined in a then effective long-term
disability plan maintained by the Company that covers such person, or (iii) if neither a written employment agreement nor a plan exists at any relevant time, “Disability” means the permanent and total disability of a person within the
meaning of Section 22(e)(3) of the Code. For purposes of determining the time during which an Incentive Stock Option may be exercised under the terms of an Option Agreement, “Disability” means the permanent and total disability of a
person within the meaning of Section 22(e)(3) of the Code. Section 22(e)(3) of the Code provides that an individual is totally and permanently disabled if he is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months. 
 (p) “Employee” means any person, including an Officer or Director, who is employed, within the meaning of Section 3401 of the Code,
by the Company or an Affiliate. The provision of compensation by the Company or an Affiliate to a Director solely with respect to such individual rendering services in the capacity of a Director, however, shall not be sufficient to constitute
“employment” by the Company or that Affiliate. 
 (q) “Exchange Act” means the Securities Exchange Act of 1934, as
amended, and any successor statute. Reference in the Plan to any section of the Exchange Act shall be deemed to include any amendments or successor provisions to such section and any rules and regulations relating to such section. 
  

			
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 (r) “Fair Market Value” means, as of any date, the United States dollar value of the
Common Stock determined as follows: 
 (i) If the Common Stock is listed on any established United States stock exchange or
traded on the NASDAQ National Market or the NASDAQ Capital Market (formerly known as the NASDAQ SmallCap Market), the Fair Market Value of a share of Common Stock shall be the closing sales price for such a share of Common Stock (or the closing bid,
if no sales were reported) as quoted on such exchange or market (or if the Common Stock is listed or traded on more than one such exchange or market, the exchange or market with the greatest volume of trading in the Common Stock) on the day of
determination (or if no such price or bid is reported on that day, on the last market trading day prior to the day of determination), as reported by the applicable exchange or market or such other source as the Committee deems reliable. 

(ii) In the absence of any such established United States market for the Common Stock, the Fair Market Value shall be determined in
good faith by the Committee. 
 (s) “Grantee” means an Employee or Director to whom an Award has been granted under the
Plan. 
 (t) “Incentive Stock Option” means an Option granted to an Employee under the Plan that meets the requirements of
Section 422 of the Code. 
 (u) “Non-Employee Director” means a Director of the Company who either (i) is not an
Employee or Officer, does not receive compensation (directly or indirectly) from the Company or an Affiliate in any capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of
Regulation S-K), does not possess an interest in any other transaction as to which disclosure would be required under Item 404(a) of Regulation S-K and is not engaged in a business relationship as to which disclosure would be required under
Item 404(b) of Regulation S-K, or (ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3. 
 (v) “Non-Qualified Stock Option” means an Option granted under the Plan that is not intended to be an Incentive Stock Option. 
 (w) “Officer” means a person who is an “officer” of the Company or any Affiliate within the meaning of Section 16 of the Exchange Act (whether or not the Company is subject to the
requirements of the Exchange Act). 
 (x) “Option” means an Award in the form of a stock option granted pursuant to
Section 7 of the Plan to purchase a specified number of shares of Common Stock, whether granted as an Incentive Stock Option or as a Non-Qualified Stock Option. 
 (y) “Option Agreement” means the written agreement evidencing the grant of an Option executed by the Company and the Optionee, including any amendments thereto. 
 (z) “Optionee” means an individual to whom an Option has been granted under the Plan. 
  

			
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 (aa) “Outside Director” means a Director of the Company who either (i) is not a
current employee of the Company or an “affiliated corporation” (within the meaning of the Treasury regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated
corporation” receiving compensation for prior services (other than benefits under a tax qualified pension plan), has not been an officer of the Company or an “affiliated corporation” at any time and is not currently receiving (within
the meaning of the Treasury regulations promulgated under Section 162(m) of the Code) direct or indirect remuneration from the Company or an “affiliated corporation” for services in any capacity other than as a Director, or
(ii) is otherwise considered an “outside director” for purposes of Section 162(m) of the Code. 
 (bb)
“Performance Criteria” means (1) earnings; (2) earnings per share; (3) EBITDA (earnings before interest, taxes, depreciation and amortization); (4) EBIT (earnings before interest and taxes);
(5) economic profit; (6) cash flow; (7) revenue; (8) revenue growth; (9) sales growth; (10) net profit before tax; (11) gross profit; (12) operating income or profit; (13) return on equity;
(14) return on assets; (15) return on capital; (16) changes in working capital; (17) shareholder return; (18) cost reduction; (19) customer satisfaction or growth; or (20) employee satisfaction; and any other
performance objective approved by the shareholders of the Company in accordance with Section 162(m) of the Code. 
 (cc)
“Plan” means this Gastar Exploration Ltd. 2006 Long-Term Stock Incentive Plan, as set forth herein and as it may be amended from time to time. 
 (dd) “Qualifying Shares” means shares of Common Stock which either (i) have been owned by the Grantee for more than six (6) months and have been “paid for” within the meaning of
Rule 144 promulgated under the Securities Act, or (ii) were obtained by the Grantee in the public market. 
 (ee) “Regulation
S-K” means Regulation S-K promulgated under the Securities Act, as it may be amended from time to time, and any successor to Regulation S-K. Reference in the Plan to any item of Regulation S-K shall be deemed to include any amendments or
successor provisions to such item. 
 (ff) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, as it may be
amended from time to time, and any successor to Rule 16b-3. 
 (gg) “Section” means a section of the Plan unless otherwise
stated or the context otherwise requires. 
 (hh) “Securities Act” means the Securities Act of 1933, as amended, and any
successor statute. Reference in the Plan to any section of the Securities Act shall be deemed to include any amendments or successor provisions to such section and any rules and regulations relating to such section. 
 (ii) “Stock Appreciation Right” means an Award granted under Section 9 of the Plan. 
  

			
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 (jj) “Stock Appreciation Rights Agreement” means a written agreement with a Grantee with
respect to an Award of Stock Appreciation Rights, including any amendments thereto. 
 (kk) “Ten Percent Shareholder” means
a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) at the time an Option is granted stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of
any of its Affiliates. 
 3. TYPES OF INCENTIVE AWARDS AVAILABLE UNDER THE PLAN. Awards granted under this Plan may be
(a) Incentive Stock Options, (b) Non-Qualified Stock Options, (c) Bonus Stock Awards, (d) Stock Appreciation Rights, and (e) any other type of Award established by the Committee which is consistent with the Plan’s
purposes, as designated at the time of grant. 
 4. SHARES SUBJECT TO PLAN. Subject to adjustment pursuant to
Section 11(a) hereof, the total amount of Common Stock with respect to which Awards may be granted under the Plan shall not exceed Five Million (5,000,000) shares. At all times during the term of the Plan, the Company shall reserve and
keep available such number of shares of Common Stock as will be required to satisfy the requirements of outstanding Awards under the Plan. Any shares of Common Stock covered by an Award (or a portion of an Award) that is forfeited or canceled or
that expires shall be deemed not to have been issued for purposes of determining the maximum aggregate number of shares of Common Stock which may be issued under the Plan and shall again be available for Awards under the Plan. Nothing in this
Section 4 shall impair the right of the Company to reduce the number of outstanding shares of Common Stock pursuant to repurchases, redemptions, or otherwise; provided, however, that no reduction in the number of outstanding shares of Common
Stock shall (a) impair the validity of any outstanding Award, whether or not that Award is fully vested or exercisable, or (b) impair the status of any shares of Common Stock previously issued pursuant to an Award as duly authorized,
validly issued, fully paid, and nonassessable. The shares to be delivered under the Plan shall be made available from (a) authorized but unissued shares of Common Stock, (b) Common Stock held in the treasury of the Company, or
(c) previously issued shares of Common Stock reacquired by the Company, including shares purchased on the open market, in each situation as the Committee may determine from time to time in its sole discretion. 
 5. ELIGIBILITY. Awards other than Incentive Stock Options may be granted to Employees, Officers and Directors. Incentive Stock Options may
be granted only to Employees (including Officers and Directors who are also Employees), as limited by clause (iii) of Section 2(a). The Committee in its sole discretion shall select the recipients of Awards. A Grantee may be granted more
than one Award under the Plan, and Awards may be granted at any time or times during the term of the Plan. The grant of an Award to an Employee, Officer or Director shall not be deemed either to entitle that individual to, or to disqualify that
individual from, participation in any other grant of Awards under the Plan. 
 6. LIMITATION ON INDIVIDUAL AWARDS. Any and all
shares available for Awards under the Plan may be awarded by way of Options, Bonus Stock Awards or Stock 

  

			
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Appreciation Rights (regardless of the form of payment) to any one person. Subject to the provisions of Section 11(a), the maximum number of shares of
Common Stock that may be subject to Options, Bonus Stock Awards and Stock Appreciation Rights granted to any one Covered Employee under the Plan shall not exceed One Million Two Hundred Fifty Thousand (1,250,000) shares. The limitations set
forth in the preceding sentence shall be applied in a manner which will permit compensation generated under the Plan, where appropriate, to constitute “performance-based” compensation for purposes of Section 162(m) of the Code,
including counting against such maximum number of shares, to the extent required under Section 162(m) of the Code and applicable interpretive authority thereunder, any shares of Common Stock subject to Options or other Awards that are canceled
or repriced. 
 7. OPTIONS. 
 (a) Grant of Options. An Option is a right to purchase shares of Common Stock during the option period for a specified exercise price. The Committee shall determine (i) whether each Option shall be granted
as an Incentive Stock Option or as a Non-Qualified Stock Option, and (ii) the provisions, terms and conditions of each Option including, but not limited to, the vesting schedule, the number of shares of Common Stock subject to the Option, the
exercise price of the Option (which may never be less than Fair Market Value of the Common Stock on the date of the grant of the Award), the period during which the Option may be exercised, forfeiture provisions, methods of payment, and all other
terms and conditions of the Option. 
 (b) Limitations on Incentive Stock Options. The aggregate Fair Market Value (determined as of
the date of grant of an Option) of Common Stock which any Employee is first eligible to purchase during any calendar year by exercise of Incentive Stock Options granted under the Plan and by exercise of incentive stock options (within the meaning of
Section 422 of the Code) granted under any other incentive stock option plan of the Company or an Affiliate shall not exceed $100,000. If the Fair Market Value of stock with respect to which all incentive stock options described in the
preceding sentence held by any one Optionee are exercisable for the first time by such Optionee during any calendar year exceeds $100,000, the Options (that are intended to be Incentive Stock Options on the date of grant thereof) for the first
$100,000 worth of shares of Common Stock to become exercisable in such year shall be deemed to constitute incentive stock options within the meaning of Section 422 of the Code and the Options (that are intended to be Incentive Stock Options on
the date of grant thereof) for the shares of Common Stock in the amount in excess of $100,000 that become exercisable in that calendar year shall be treated as Non-Qualified Stock Options. If the Code or the Treasury regulations promulgated
thereunder are amended after the effective date of the Plan to provide for a different limit than the one described in this Section 7(b), such different limit shall be incorporated herein and shall apply to any Options granted after the
effective date of such amendment. 
 (c) Acquisitions and Other Transactions. Notwithstanding the provisions of Section 10(g), in
the case of an Option issued or assumed pursuant to Section 10(g), the exercise price and number of shares for the Option shall be determined in accordance with the principles of Section 424(a) of the Code and the Treasury regulations
promulgated thereunder. The Committee may, from time to time, assume outstanding options granted by another entity, whether in connection with an acquisition of such other entity or otherwise, by either (i) granting 

  

			
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an Option under the Plan in replacement of or in substitution for the option assumed by the Company, or (ii) treating the assumed option as if it had
been granted under the Plan if the terms of such assumed option could be applied to an Option granted under the Plan. Such assumption shall be permissible if the holder of the assumed option would have been eligible to be granted an Option hereunder
if the other entity had applied the rules of the Plan to such grant. The Committee also may grant Options under the Plan in settlement of or substitution for, outstanding options or obligations to grant future options in connection with the Company
or an Affiliate acquiring another entity, an interest in another entity or an additional interest in an Affiliate whether by merger, stock purchase, asset purchase or other form of transaction. 
 (d) Payment or Exercise. Payment for the shares of Common Stock to be purchased upon exercise of an Option may be made in cash (by check) or, if
elected by the Optionee and in one or more of the following methods stated in the Option Agreement (at the date of grant with respect to any Option granted as an Incentive Stock Option) and where permitted by law: (i) if a public market for the
Common Stock exists, through a “same day sale” arrangement between the Optionee and a broker-dealer that is a member of the National Association of Securities Dealers, Inc. (an “NASD Dealer”) whereby the Optionee
irrevocably elects to exercise the Option and to sell a portion of the shares of Common Stock so purchased to pay for the exercise price and whereby the NASD Dealer irrevocably commits upon receipt of such shares of Common Stock to forward the
exercise price directly to the Company; (ii) if a public market for the Common Stock exists, through a “margin” commitment from the Optionee and an NASD Dealer whereby the Optionee irrevocably elects to exercise the Option and to
pledge the shares of Common Stock so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the exercise price, and whereby the NASD Dealer irrevocably commits upon receipt of such shares of
Common Stock to forward the exercise price directly to the Company; or (iii) by surrender for cancellation of Qualifying Shares at the Fair Market Value per share at the time of exercise (provided that such surrender does not result in an
accounting charge for the Company). No shares of Common Stock may be issued until full payment of the purchase price therefor has been made. 
 8. BONUS STOCK AWARDS. 
 (a) Bonus Stock Awards. A Bonus Stock Award is a grant of shares of Common Stock for
such consideration, if any, and subject to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions and other terms and conditions as are established by the Committee. 
 (b) Forfeiture Restrictions. Shares of Common Stock that are the subject of a Bonus Stock Award may be subject to restrictions on disposition by
the Grantee and to an obligation of the Grantee to forfeit and surrender the shares to the Company under certain circumstances (the “Forfeiture Restrictions”). The Forfeiture Restrictions shall be determined by the Committee in its
sole discretion, and the Committee may provide that the Forfeiture Restrictions shall lapse on the passage of time, the attainment of one or more performance targets established by the Committee, or the occurrence of such other event or events
determined to be appropriate by the Committee; provided, however, that (i) for a Bonus Stock Award subject to Forfeiture Restrictions based on the passage of time, the Forfeiture Restrictions shall lapse ratably over a 

  

			
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minimum period of three (3) years, and (ii) for a Bonus Stock Award subject to Forfeiture Restrictions based on Performance Criteria or any other
event, the Forfeiture Restrictions shall not lapse prior to one year after grant of the Bonus Stock Award. The Forfeiture Restrictions, if any, applicable to a particular Bonus Stock Award (which may differ from any other such Bonus Stock Award)
shall be stated in the Bonus Stock Agreement. 
 (c) Rights as Shareholder. Shares of Common Stock awarded pursuant to a Bonus Stock
Award shall be represented by a stock certificate registered in the name of the Grantee of such Bonus Stock Award. The Grantee shall have the right to receive dividends with respect to the shares of Common Stock subject to a Bonus Stock Award, to
vote the shares of Common Stock subject thereto and to enjoy all other shareholder rights with respect to the shares of Common Stock subject thereto, except that, unless provided otherwise in this Plan, or in the Bonus Stock Agreement, (i) the
Grantee shall not be entitled to delivery of the shares of Common Stock except as the Forfeiture Restrictions expire, (ii) the Company or an escrow agent shall retain custody of the shares of Common Stock until the Forfeiture Restrictions
expire, (iii) the Grantee may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the shares of Common Stock until the Forfeiture Restrictions expire. 
 (d) Stock Certificate Delivery. One or more stock certificates representing shares of Common Stock, free of Forfeiture Restrictions, shall be
delivered to the Grantee promptly after, and only after, the Forfeiture Restrictions have expired. The Grantee, by his acceptance of the Bonus Stock Award, irrevocably grants to the Company a power of attorney to transfer any shares so forfeited to
the Company, agrees to execute any documents requested by the Company in connection with such forfeiture and transfer, and agrees that such provisions regarding transfers of forfeited shares shall be specifically performable by the Company in a
court of equity or law. 
 (e) Payment for Bonus Stock. The Committee shall determine the amount and form of any payment for shares of
Common Stock received pursuant to a Bonus Stock Award. In the absence of such a determination, the Grantee shall not be required to make any payment for shares of Common Stock received pursuant to a Bonus Stock Award, except to the extent otherwise
required by law. 
 (f) Forfeiture of Bonus Stock. Unless otherwise provided in a Bonus Stock Agreement, on termination of the
Grantee’s Continuous Service prior to lapse of the Forfeiture Restrictions, the shares of Common Stock which are still subject to the Forfeiture Restrictions under Bonus Stock Award shall be forfeited by the Grantee. Upon any forfeiture, all
rights of the Grantee with respect to the forfeited shares of the Common Stock subject to the Bonus Stock Award shall cease and terminate, without any further obligation on the part of the Company except to repay any purchase price per share paid by
the Grantee for the shares forfeited. 
 (g) Waiver of Forfeiture Restrictions; Committee’s Discretion. With respect to a Bonus
Stock Award that has been granted to a Covered Employee where such Award has been designed to meet the exception for performance-based compensation under Section 162(m) of the Code, the Committee may not waive the Forfeiture Restrictions
applicable to such Bonus Stock Award. 
  

			
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 9. STOCK APPRECIATION RIGHTS. 
 (a) Stock Appreciation Rights. A Stock Appreciation Right is a right to receive, upon exercise of the right, shares of Common Stock or their cash
equivalent in an amount equal to the increase in Fair Market Value, if any, of the Common Stock between the grant and exercise dates. 
 (b)
Tandem Rights. Stock Appreciation Rights may be granted in connection with the grant of an Option, in which case exercise of Stock Appreciation Rights will result in the surrender of the right to purchase the shares under the Option as to
which the Stock Appreciation Rights were exercised. Alternatively, Stock Appreciation Rights may be granted independently of Options in which case each Award of Stock Appreciation Rights shall be evidenced by a Stock Appreciation Rights Agreement.
With respect to Stock Appreciation Rights that are subject to Section 16 of the Exchange Act, the Committee shall retain sole discretion (i) to determine the form in which payment of the Stock Appreciation Right will be made (i.e.,
cash, securities or any combination thereof), or (ii) to approve an election by a Grantee to receive cash in full or partial settlement of Stock Appreciation Rights. 
 (c) Limitations on Exercise of Stock Appreciation Rights. A Stock Appreciation Right shall be exercisable in whole or in such installments and at such times as determined by the Committee. 
 10. GENERAL PROVISIONS REGARDING AWARDS. 
 (a) Form of Award Agreement. Each Award granted under the Plan shall be evidenced by a written Award Agreement in such form (which need not be the same for each Grantee) as the Committee from time to time
approves, but which is not inconsistent with the Plan, including any provisions that may be necessary to assure that any Option that is intended to be an Incentive Stock Option will comply with Section 422 of the Code. 
 (b) Awards Criteria. In determining the amount and value of Awards to be granted, the Committee may take into account the responsibility level,
performance, potential, other Awards and such other considerations with respect to a Grantee as it deems appropriate. The terms of an Award Agreement may provide that the amount payable as an Award may be adjusted for dividends or dividend
equivalent. 
 (c) Date of Grant. The date of grant of an Award will be the date specified by the Committee as the effective date of
the grant of an Award or, if the Committee does not so specify, will be the date on which the Committee makes the determination to grant such Award. The Award Agreement evidencing the Award will be delivered to the Grantee with a copy of the Plan
and other relevant Award documents within a reasonable time after the date of grant. 
 (d) Stock Price. The exercise price or other
measurement of stock value relative to any Award shall be the price determined by the Committee (which shall be not less than either the Fair Market Value or the par value of the shares of Common Stock on the date of grant of the Award). The
exercise price of any Incentive Stock Option shall not be less than 100% of the 

  

			
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Fair Market Value of the shares of Common Stock for the date of grant of the Option; provided, however, the exercise price of any Incentive Stock Option
granted to a Ten Percent Shareholder shall not be less than 110% of the Fair Market Value of the shares of Common Stock for the date of grant of the Option. 
 (e) Period of Award. Awards shall be exercisable or payable within the time or times or upon the event or events determined by the Committee and set forth in the Award Agreement. Unless otherwise provided in an
Award Agreement, Awards other than Bonus Stock Awards shall terminate on (and no longer be exercisable or payable after) the earlier of: (i) ten (10) years from the date of grant of the Award; (ii) for an Incentive Stock Option
granted to a Ten Percent Shareholder, five (5) years from the date of grant of the Option; (iii) three (3) months after the Grantee is no longer serving in any capacity as an Employee or Director of the Company for a reason other than
the death or Disability of the Grantee; (iv) one (1) year after death of the Grantee; or (v) one (1) year after Disability of the Grantee. 
 (f) Transferability of Awards. Awards granted under the Plan, and any interest therein, shall not be transferable or assignable by the Grantee, and may not be made subject to execution, attachment or similar
process, otherwise than by will or by the laws of descent and distribution, and shall be exercisable or payable during the lifetime of the Grantee only by the Grantee; provided, that the Grantee may designate persons who or which may exercise or
receive his Awards following his death. Notwithstanding the preceding sentence, Awards other than Incentive Stock Options may be transferred to such family members, family member trusts, family limited partnerships and other family member entities
as the Committee, in its sole discretion, may approve prior to any such transfer. No such transfer will be approved by the Committee if the Common Stock issuable under such transferred Award would not be eligible to be registered on Form S-8
promulgated under the Securities Act. 
 (g) Acquisitions and Other Transactions. The Committee may, from time to time, approve the
assumption of outstanding awards granted by another entity, whether in connection with an acquisition of such other entity or otherwise, by either (i) granting an Award under the Plan in replacement of or in substitution for the awards assumed
by the Company, or (ii) treating the assumed award as if it had been granted under the Plan if the terms of such assumed award could be applied to an Award granted under the Plan. Such assumption shall be permissible if the holder of the
assumed award would have been eligible to be granted an Award hereunder if the other entity had applied the rules of this Plan to such grant. 
 (h) Payment. Payment of an Award (i) may be made in cash, Common Stock or a combination thereof, as determined by the Committee in its sole discretion, (ii) shall be made in a lump sum or in installments as prescribed by
the Committee in its sole discretion, and (iii) to the extent applicable, shall be based on the Fair Market Value of the Common Stock for the payment or exercise date. The Committee may permit or require the deferral of payment, subject to such
rules and procedures as it may establish, which may include provisions for the payment or crediting of interest, dividend equivalents or other forms of investment return. 
 (i) Notice. If an Award involves an exercise, it may be exercised only by delivery to the Company of a written exercise agreement approved by the Committee (which need not be the 

  

			
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	2006 Long-Term Stock Incentive Plan	 	Page 11

 
same for each Grantee), stating the number of shares of Common Stock being purchased, the method of payment, and such other matters as may be deemed
appropriate by the Company in connection with the issuance of shares upon exercise of the Award, together with payment in full of any exercise price for any shares of Common Stock being purchased. Such exercise agreement may be part of a
Grantee’s Award Agreement. 
 (j) Withholding Taxes. The Committee may establish such rules and procedures as it considers
desirable in order to satisfy any obligation of the Company to withhold the statutory prescribed minimum amount of federal or state income taxes or other taxes with respect to the grant, exercise or payment of any Award under the Plan, including
procedures for a Grantee to have shares of Common Stock withheld from the total number of shares of Common Stock to be issued or purchased upon grant or exercise of an Award. Prior to issuance of any shares of Common Stock, the Grantee shall pay or
make adequate provision acceptable to the Committee for the satisfaction of the statutory minimum prescribed amount of any federal or state income or other tax withholding obligations of the Company, if applicable. Upon grant, exercise or payment of
an Award, the Company shall withhold or collect from the Grantee an amount sufficient to satisfy such tax withholding obligations. 
 (k)
Exercise of Award Following Termination of Continuous Service. 
 (i) An Award may not be exercised after the
expiration date of such Award set forth in the Award Agreement and may be exercised following the termination of a Grantee’s Continuous Service only to the extent provided in the Award Agreement. 
 (ii) Where the Award Agreement permits a Grantee to exercise an Award following the termination of the Grantee’s Continuous Service
for a specified period, the Award shall terminate to the extent not exercised on the last day of the specified period or the last day of the original term of the Award, whichever occurs first. 
 (iii) Any Option designated as an Incentive Stock Option, to the extent not exercised within the time permitted by law for the exercise of
Incentive Stock Options following the termination of an Optionee’s Continuous Service, shall convert automatically to a Non-Qualified Stock Option and thereafter shall be exercisable as such to the extent exercisable by its terms for the period
specified in the Option Agreement. 
 (iv) The Committee shall have discretion to determine whether the Continuous Service of
a Grantee has terminated and the effective date on which such Continuous Service terminates and whether the Grantee’s Continuous Service terminated as a result of the Disability of the Grantee. 
 (l) Limitations on Exercise. 
 (i) The Committee may specify a reasonable minimum number of shares of Common Stock or a percentage of the shares subject to an Award that may be purchased on any exercise of an Award; provided, that such minimum number will not prevent a

  

			
	Gastar Exploration Ltd.	 	
	2006 Long-Term Stock Incentive Plan	 	Page 12

 
Grantee from exercising the full number of shares of Common Stock as to which the Award is then exercisable. 
 (ii) The obligation of the Company to issue any shares of Common Stock pursuant to the exercise of any Award or otherwise make payments
hereunder shall be subject to the condition that such exercise and the issuance and delivery of such shares and other actions pursuant thereto comply with the Securities Act, all applicable state securities and other laws and the requirements of any
stock exchange or national market system upon which the shares of Common Stock may then be listed or quoted, as in effect on the date of exercise. The Company shall be under no obligation to register the shares of Common Stock with the Securities
and Exchange Commission or to effect compliance with the registration, qualification or listing requirements of any state securities laws or stock exchange or national market system, and the Company shall have no liability for any inability or
failure to do so. 
 (iii) As a condition to the exercise of an Award, the Company may require the person exercising such
Award to represent and warrant at the time of any such exercise that the shares of Common Stock are being purchased only for investment and without any present intention to sell or distribute such shares of Common Stock if, in the opinion of counsel
for the Company, such a representation is required by any securities or other applicable laws. 
 (m) Privileges of Stock Ownership.
Except as provided in the Plan with respect to Bonus Stock Awards, no Grantee will have any of the rights of a shareholder with respect to any shares of Common Stock subject to an Award until such Award is properly exercised and the purchased or
awarded shares are issued and delivered to the Grantee, as evidenced by an appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company. No adjustment shall be made for dividends or distributions or other
rights for which the record date is prior to such date of issuance and delivery, except as provided in the Plan. 
 (n) Breach; Additional
Terms. A breach of the terms and conditions of this Plan or established by the Committee pursuant to the Award Agreement shall cause a forfeiture of the Award. At the time of such Award, the Committee may, in its sole discretion, prescribe
additional terms, conditions or restrictions relating to the Award, including provisions pertaining to the termination of the Grantee’s employment (by retirement, Disability, death or otherwise) prior to expiration of the Forfeiture
Restrictions or other vesting provisions. Such additional terms, conditions or restrictions shall also be set forth in an Award Agreement made in connection with the Award. 
 (o) Performance-Based Compensation. The Committee may designate any Award as “qualified performance-based compensation” for purposes of
Section 162(m) of the Code. Any Awards designated as “qualified performance-based compensation” shall be conditioned on the achievement of any one or more Performance Criteria, and the measurement may be stated in absolute terms or
relative to individual performances, comparable companies, peer or industry groups or other standard indexes, and in terms of Company-wide objectives or in terms of absolute or comparative objectives that relate to the performance of divisions,
affiliates, 

  

			
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	2006 Long-Term Stock Incentive Plan	 	Page 13

 
departments or functions within the Company or an Affiliate. Notwithstanding any other provision of the Plan, the Committee may grant an Award that is not
contingent on performance goals or is contingent on performance goals other than the Performance Criteria, so long as the Committee has determined that such Award is not intended to satisfy the requirements for “qualified performance-based
compensation” within the meaning of Section 162(m) of the Code. 
 11. ADJUSTMENT UPON CHANGES IN CAPITALIZATION AND
CORPORATE EVENTS. 
 (a) Capital Adjustments. The number of shares of Common Stock (i) covered by each outstanding Award
granted under the Plan, the exercise, target or purchase price of each such outstanding Award, and any other terms of the Award that the Committee determines require adjustment and (ii) available for issuance under Sections 4 and 6 shall be
adjusted to reflect, as deemed appropriate by the Committee, any increase or decrease in the number of shares of Common Stock resulting from a stock dividend, stock split, reverse stock split, combination, reclassification or similar change in the
capital structure of the Company without receipt of consideration, subject to any required action by the Board or the shareholders of the Company and compliance with applicable securities laws; provided, however, that a fractional share will not be
issued upon exercise of any Award, and either (i) any fraction of a share of Common Stock that would have resulted will be cashed out at Fair Market Value or (ii) the number of shares of Common Stock issuable under the Award will be
rounded up to the nearest whole number, as determined by the Committee; and provided further that the exercise, target or purchase price may not be decreased to below either the Fair Market Value or the par value, if any, for the shares of Common
Stock as adjusted pursuant to this Section 11(a). Except as the Committee determines, no issuance by the Company of shares of capital stock of any class, or securities convertible into shares of capital stock of any class, shall affect, and no
adjustment by reason hereof shall be made with respect to, the number or price of shares of Common Stock subject to an Award. 
 (b)
Dissolution or Liquidation. The Committee shall notify the Grantee at least twenty (20) days prior to any proposed dissolution or liquidation of the Company. Unless specifically provided otherwise in an individual Award or Award
Agreement or in a then-effective written employment agreement between the Grantee and the Company or an Affiliate, to the extent that an Award has not been previously exercised, if applicable, such Award shall terminate immediately prior to
consummation of such dissolution or liquidation. 
 (c) Change in Control. Unless specifically provided otherwise with respect to
Change in Control events in an individual Award or Award Agreement or in a then-effective written employment agreement between the Grantee and the Company or an Affiliate, if, during the effectiveness of the Plan, a Change in Control occurs, the
surviving entity or purchaser described in Section 2(g), the “Purchaser”, shall either assume the obligations of the Company under the outstanding Awards or convert the outstanding Awards into awards of at least equal value as to
capital stock of the Purchaser. In the event such Purchaser refuses to assume or substitute Awards pursuant to a Change in Control, each Award which is at the time outstanding under the Plan shall (i) except as provided otherwise in an
individual Award or Award Agreement, automatically become, subject to all other terms of the Award or Award Agreement, 

  

			
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	2006 Long-Term Stock Incentive Plan	 	Page 14

 
fully vested and exercisable or payable, as appropriate, and be released from any repurchase or forfeiture provisions, immediately prior to the specified
effective date of such Change in Control, for all of the shares of Common Stock at the time represented by such Award, (ii) the Forfeiture Restrictions applicable to all outstanding Bonus Stock Awards shall lapse and shares of Common Stock
subject to such Bonus Stock Awards shall be released from escrow, if applicable, and delivered to the Grantees of the Awards free of any Forfeiture Restriction, (iii) all other Awards shall become fully vested and payment thereof shall be
accelerated using, if applicable, the then-current Fair Market Value to measure any payment that is based on the value of the Common Stock or using such higher amount as the Committee may determine to be more reflective of the actual value of such
stock, and (iv) notwithstanding any contrary terms in the Award or Award Agreement, expire on a date at least twenty (20) days after the Committee gives written notice to Grantees specifying the terms and conditions of such termination.

 To the extent that a Grantee exercises an Award before or on the effective date of the Change in Control, the Company shall issue all
Common Stock purchased by exercise of that Award (subject to the Grantee’s satisfaction of the requirements of Section 10(j)), and those shares of Common Stock shall be treated as issued and outstanding for purposes of the Change in
Control. Upon a Change in Control, when the outstanding Awards are not assumed by the Purchaser, the Plan shall terminate and any unexercised Awards outstanding under the Plan at that date shall terminate. 
 12. SHAREHOLDER APPROVAL. The Company shall obtain the approval of the Plan by the Company’s shareholders to the extent required to
satisfy Sections 162(m) or 422 of the Code or to satisfy or comply with any applicable laws or the rules of any stock exchange or national market system on which the Common Stock may be listed or quoted. 
 13. ADMINISTRATION. The Plan shall be administered by the Committee. The Committee shall interpret the Plan and any Awards granted pursuant
to the Plan and shall prescribe such rules and regulations in connection with the operation of the Plan as it determines to be advisable for the administration of the Plan. The Committee may rescind and amend its rules and regulations from time to
time. The interpretation by the Committee of any of the provisions of the Plan or any Award granted under the Plan shall be final and binding upon the Company and all persons having an interest in any Award or any shares of Common Stock purchased or
other payments received pursuant to an Award. Notwithstanding the authority hereby delegated to the Committee to grant Awards to Employees and Directors under the Plan, the Board shall have full authority, subject to the express provisions of the
Plan, to grant Awards to Employees and Directors under the Plan, to interpret the Plan, to provide, modify and rescind rules and regulations relating to it, to determine the terms and provision of Awards granted to Employees and Directors under the
Plan and to make all other determinations and perform such actions as the Board deems necessary or advisable to administer the Plan. No member of the Committee or the Board shall be liable for any action taken or determination made in good faith
with respect to the Plan or any Award granted hereunder. 
 14. EFFECT OF PLAN. Neither the adoption of the Plan nor any action
of the Board or the Committee shall be deemed to give any Employee or Director any right to be 

  

			
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	2006 Long-Term Stock Incentive Plan	 	Page 15

 
granted an Award or any other rights except as may be evidenced by the Award Agreement, or any amendment thereto, duly authorized by the Committee and
executed on behalf of the Company, and then only to the extent and on the terms and conditions expressly set forth therein. The existence of the Plan and the Awards granted hereunder shall not affect in any way the right of the Board, the Committee
or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation or other transaction involving the Company,
any issue of bonds, debentures, or shares of preferred stock ranking prior to or affecting the Common Stock or the rights thereof, the dissolution or liquidation of the Company or any sale or transfer of all or any part of the Company’s assets
or business, or any other corporate act or proceeding by or for the Company. Nothing contained in the Plan or in any Award Agreement or in other related documents shall confer upon any Employee or Director any right with respect to such
person’s Continuous Service or interfere or affect in any way with the right of the Company or an Affiliate to terminate such person’s Continuous Service at any time, with or without cause. 
 15. NO EFFECT ON RETIREMENT AND OTHER BENEFIT PLANS. Except as specifically provided in a retirement or other benefit plan of the Company
or an Affiliate, Awards shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Company or an Affiliate, and shall not affect any benefits under any other benefit plan of any kind or any
benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation. The Plan is not a “Retirement Plan” or “Welfare Plan” under the Employee Retirement Income Security Act
of 1974, as amended. 
 16. AMENDMENT OR TERMINATION OF PLAN. The Board in its discretion may, at any time or from time to time
after the date of adoption of the Plan, terminate or amend the Plan in any respect, including amendment of any form of Award Agreement, exercise agreement, or instrument to be executed pursuant to the Plan; provided, however, to the extent necessary
to comply with the Code, including Sections 162(m) and 422 of the Code, other applicable laws, or the applicable requirements of any stock exchange or national market system, the Company shall obtain shareholder approval of any Plan amendment in
such manner and to such a degree as required. No Award may be granted after termination of the Plan. Any amendment or termination of the Plan shall not affect Awards previously granted, and such Awards shall otherwise remain in full force and effect
as if the Plan had not been amended or terminated, unless mutually agreed otherwise in a writing (including an Award Agreement) signed by the Grantee and the Company. 
 17. EFFECTIVE DATE AND TERM OF PLAN. The Plan shall become effective March 29, 2006, which is the date of adoption of the Plan by the Board. The Plan shall continue in effect for a term of ten
(10) years from March 29, 2006 and terminate on March 29, 2016, unless sooner terminated by action of the Board. 
 18.
SEVERABILITY AND REFORMATION. The Company intends all provisions of the Plan to be enforced to the fullest extent permitted by law. Accordingly, should a court of competent jurisdiction determine that the scope of any provision of the
Plan is too broad to be enforced as written, the court should reform the provision to such narrower scope as 

  

			
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	2006 Long-Term Stock Incentive Plan	 	Page 16

 
it determines to be enforceable. If, however, any provision of the Plan is held to be wholly illegal, invalid, or unenforceable under present or future law,
such provision shall be fully severable and severed, and the Plan shall be construed and enforced as if such illegal, invalid, or unenforceable provision were never a part hereof, and the remaining provisions of the Plan shall remain in full force
and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance. 
 19. GOVERNING
LAW. The Plan and all issues or matters relating to the Plan shall be governed by, determined and enforced under, and construed and interpreted in accordance with the laws of the State of Texas. 
 20. INTERPRETIVE MATTERS. Whenever required by the context, pronouns and any variation thereof shall be deemed to refer to the masculine,
feminine, or neuter, and the singular shall include the plural, and visa versa. The term “include” or “including” does not denote or imply any limitation. The captions and headings used in the Plan are inserted for convenience
and shall not be deemed a part of the Plan for construction or interpretation. 
 21. SECTION 409A COMPLIANCE. Notwithstanding
any other provision of the Plan to the contrary, it is not the intention of the Company that this Plan or any Award granted under the Plan result in unfavorable tax consequences to any Grantee under Section 409A of the Code. The Company intends
that the Plan and any Award granted under the Plan shall at all times be exempt from or otherwise comply with the provisions of Code Section 409A. The provisions, terms and conditions of the Plan and any Award granted under the Plan may be
amended at anytime, if necessary, in order to be exempt from or otherwise comply with the provisions of Code Section 409A; provided, however, that neither the Company nor a Grantee shall be required to assume an increased economic burden in
connection with any such amendment. 
  

			
	Gastar Exploration Ltd.	 	
	2006 Long-Term Stock Incentive Plan	 	Page 17New Jersey Mining, Camp Project Agreement

 Exhibit 10.1 
 New Jersey Mining Company, Camp Project Agreement 
 AGREEMENT & ASSIGNMENT 
 THIS AGREEMENT is entered into this 20th day of April, 2006 and is by and between STERLING MINING COMPANY, an Idaho corporation of P.O. Box 2838, Coeur d’Alene, Idaho, 83816 (hereinafter referred to as “SMC”), and NEW JERSEY MINING COMPANY of P.O.
Box 1019, Kellogg, Idaho, 83837, (hereinafter referred to as “NJMC”). 
 RECITALS 
  

	1.	NJMC is the successor in interest by merger to Plainview Mining Company, Inc., said merger having occurred on March 12, 1998. 

  

	2.	NJMC is a party to that certain Agreement dated July 26, 1978, (“the Camp Agreement”) by and between Coeur d’Alene Mines Corporation, (“COEUR”), now
Coeur Silver Valley, Inc. (“CSV”) by reason of an assignment from COEUR, Plainview Mining Company, Inc. hereinafter referred to as New Jersey Mining Company, (“NJMC”), and Merger Mines Corporation (“MERGER”).

  

	3.	NJMC conveyed certain patented mining claims to the participants in the above Camp Agreement. Said claims are a part of the property the subject of the Camp Agreement and are held
by the participants pursuant to the terms and provisions of the Camp Agreement. 

  

 AGREEMENT & ASSIGNMENT - PAGE 1 

	4.	NJMC is desirous of assigning its interest in the Agreement to SMC and selling and conveying all of its real property, assets, rights, duties and obligations, the subject of said
Agreement to SMC. 

  

	5.	SMC is desirous of purchasing NJMC’s interest and all rights associated with and in the Camp Agreement, including the real property owned by NJMC and conveyed by NJMC as
required and made a part of the Camp Agreement according to all the terms and provisions of the Camp Agreement. 

 WITNESSETH: 
 NOW THEREFORE, in consideration of the mutual covenants and conditions contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
  

	1.	NJMC hereby grants, bargains, sells and conveys to SMC all of its right, title and interest in the following described real property: 

  

			
	Fourthought	  	Mineral Survey No. 3281
	Plainview Fraction	  	Mineral Survey No. 3281
	Silver Hill	  	Mineral Survey No. 3281
	Toughnut	  	Mineral Survey No. 3281
	Plainview No. 2	  	Mineral Survey No. 3281
	Plainview No. 1	  	Mineral Survey No. 3281

  

	2.	NJMC hereby assigns, sells and conveys to SMC all of its right, title and interest held by NJMC in the Camp Agreement. Said rights include but are not 

  

 AGREEMENT & ASSIGNMENT - PAGE 2 

	 	 
limited to the real property set forth above and all other rights, duties and obligations as set forth and contained in the Camp Agreement. NJMC also agrees
to provide all data, reports and records of any kind or nature having to do with the Camp Agreement and property. 

  

	3.	It is agreed that the participants and parties to the Camp Agreement must consent to this Assignment and this Agreement and Assignment will be effective and the consideration set
forth herein delivered upon the following events occurring: 

  

	 	A.	Delivery to SMC of the Consent to Assignment signed by CSV and MERGER. 

  

	 	B.	Delivery of a preliminary title commitment evidencing marketable title to the above patented mining claims. 

  

	4.	As consideration for NJMC conveying the real property described herein and assigning its interest in the Camp Agreement as described herein, SMC shall pay to NJMC the sum of One
Hundred Twenty Thousand Dollars ($120,000.00) upon closing of this transaction. 

  

	5.	NJMC shall execute the Warranty Deed attached hereto as Exhibit “I” and provide the Consent to Assignment in the form attached hereto as Exhibit “2”, duly and
properly executed by CSV and MERGER. 

  

 AGREEMENT & ASSIGNMENT - PAGE 3 

	6.	NJMC shall furnish a Preliminary Title Report from a reputable title insurance company within fifteen (15) days of the date of execution of this Agreement and Assignment,
evidencing marketable title to said property in fee simple, subject to printed exceptions and easements and covenants of record. The parties shall equally split the cost of said report and pay their share of the cost upon presentment of the report
invoice. 

  

	 	A.	SMC shall examine said report and advise NJMC in writing, signed by SMC or its attorney, specifying in detail, the objections, if any, SMC makes to the title. Said objections shall
be made to NJMC within fifteen (15) days of receipt of the report or the right to so object shall be considered waived. 

  

	 	B.	It is further understood and agreed that if, for any reason, NJMC shall fail to so furnish said report within fifteen (15) days, or are unable to meet SMC’s objections as
indicated in the aforementioned letter, then SMC shall have the option to declare this Agreement null and void or SMC can elect to waive the objections and proceed with the purchase. If SMC has no objections or waives its objections, NJMC shall,
within fifteen (15) days cause a supplemental policy to be issued pending the closing of this transaction. At closing, a Title Insurance Policy shall be delivered to SMC. 

  

	 	C.	And furthermore, NJMC shall be allowed thirty (30) days in which to commence action to cure any such defects in the title and SMC hereby agrees that said defect or defects
shall be made good and the title perfected as soon as reasonably possible at NJMC’s own expense. 

  

	7.	SMC agrees to and shall be bound by all of the terms and conditions of the Camp Agreement, a copy of which is attached hereto as Exhibit “3”. NJMC represents and warrants
there are no outstanding debts, liens or amounts due and owing by NJMC to the other participants in the Camp Agreement. 

  

 AGREEMENT & ASSIGNMENT - PAGE 4 

	8.	Governing Law and Venue. All questions relative to the execution, validity, interpretation and performance of this Agreement and Assignment shall be governed by the laws of
the State of Idaho. The parties hereto agree that any action related to this Agreement and Assignment shall be instituted and maintained in the courts of the County of Shoshone, State of Idaho and each party hereto waives the right to change of
venue. 

  

	9.	Waiver and Modification Ineffective Unless in Writing. No waiver, alteration or modification of any of the provisions of this Agreement and Assignment shall be binding unless
in writing and signed by a duly authorized representative of both parties. The parties mutually agree that neither party shall employ or offer any employment with any present or former employee of the other for a period of one (1) year from the
date of termination of his or her employment with the other party. 

  

	10.	Validity. If any provision in this Agreement and Assignment shall, for any reason, be held to be in violation of any applicable law and therefore such provision is held to be
unenforceable, the invalidity of such specific provision shall not be held to invalidate any other provision herein which shall remain in full force and effect. 

  

 AGREEMENT & ASSIGNMENT - PAGE 5 

 IN WITNESS WHEREOF, SMC and NJMC have duly executed this Agreement and Assignment as of the day and year
first above written. 
  

							
	STERLING MINING COMPANY	 	NEW JERSEY MINING COMPANY
				
	By:	 	 /s/ Raymond De Mott
	 	By:	 	 /s/ Fred W. Brackebusch

		 	Raymond De Mott, President	 	Printed Name:	 	Fred W. Brackebusch
		 		 	Title:	 	President

  

			
	STATE OF IDAHO	  	)
		  	) ss.
	County of Shoshone	  	)

 On this 20th day of May, 2006, before me, the undersigned, a Notary Public in and for the state aforesaid, personally appeared Raymond De Motte, known or identified to me to be the President of Sterling Mining
Company, and he executed the foregoing instrument on behalf of said corporation, and acknowledged to me that such corporation executed the same. 
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial seal the day and year in this certificate first above written. 
  

					
	

	 	 /s/ Sharon K. Jacobs

	 	Notary Public in and for the State of Idaho,
	 	Residing at:  Wallace
	 	My Commission expires:	 	8-16-2010

  

 AGREEMENT & ASSIGNMENT - PAGE 6 

			
	STATE OF IDAHO	  	)
		  	) ss.
	County of Shoshone	  	)

 On this 20th day of April, 2006, before me, the undersigned, a Notary Public in and for the state aforesaid, personally appeared Fred Brackebusch, known or identified to me to be the President of New Jersey Mining
Company, and he executed the foregoing instrument on behalf of said corporation, and acknowledged to me that such corporation executed the same. 
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial seal the day and year in this certificate first above written. 
  

					
	

	 	 /s/ Cary A. Spoor

	 	Notary Public in and for the State of Idaho,
	 	Residing at:  Pinehurst
	 	My Commission expires:	 	2014

  

 AGREEMENT & ASSIGNMENT - PAGE 7

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