Document:

Form of senior debt security-medium-term note Linked to Basket of Asian Indices.

 Exhibit 4.01 
 LEHMAN BROTHERS HOLDINGS INC. 
 Buffered Principal at Risk Notes Linked to a Basket of Asian Indices Due November 2,
2010 
  

			
	Number R-1	  	$2,900,000
	ISIN US5249083M00	  	CUSIP 5249083M0

 See Reverse for Certain Definitions 
 THIS SECURITY (THIS “SECURITY”) IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN
THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN CERTIFICATED FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A
NOMINEE OF THE DEPOSITORY TO SUCH DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TO LEHMAN BROTHERS HOLDINGS INC. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 LEHMAN BROTHERS
HOLDINGS INC., a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the “Company”), for value received, hereby promises to pay to CEDE & CO. or registered assigns, at the
office or agency of the Company in the Borough of Manhattan, The City of New York, on the Maturity Date, in such coin or currency of the United States of America at the time of payment shall be legal tender for the payment of public and private
debts, for each $1,000 principal amount of the Securities represented hereby, an amount equal to the Payment at Maturity. THE SECURITIES REPRESENTED HEREBY SHALL NOT BEAR ANY INTEREST. 
 Any amount payable on the Maturity Date hereon will be paid only upon presentation and surrender of this Security. 
 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SECURITY SET FORTH ON THE REVERSE HEREOF WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE
THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. 

 IN WITNESS WHEREOF, Lehman Brothers Holdings Inc. has caused this instrument to be signed by its Chairman
of the Board, its President, its Vice Chairman, its Chief Financial Officer, one of its Vice Presidents or its Treasurer, by manual or facsimile signature under its corporate seal, attested by its Secretary or one of its Assistant Secretaries by
manual or facsimile signature. 
  

							
	Dated: November 2, 2007	  	LEHMAN BROTHERS HOLDINGS INC.	 	
				
	[SEAL]	  		 		 	
				
		  	By:	 	  
	 	
		  		 	Vice President	 	
				
		  	Attest:	 	  
	 	
		  		 	Assistant Secretary	 	

  
 TRUSTEE’S CERTIFICATE OF
AUTHENTICATION 
 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 
  

			
	CITIBANK, N.A.
	as Trustee
		
	By:	 	  

		 	    Authorized Officer

  

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 Reverse of Security 
 This Security is one of a duly authorized series of Securities of the Company designated as Buffered Principal at Risk Notes Linked to a Basket of Asian Indices Due November 2, 2010 (herein called the
“Securities”). The Company may, without the consent of the holders of the Securities, create and issue additional securities ranking equally with the Securities and otherwise similar in all respects so that such additional
securities shall be consolidated and form a single series with the Securities; provided that no additional securities can be issued if an Event of Default has occurred with respect to the Securities. This series of Securities is one of an indefinite
number of series of debt securities of the Company, issued and to be issued under an indenture, dated as of September 1, 1987, as amended (herein called the “Indenture”), duly executed and delivered by the Company and Citibank,
N.A., as trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities. 
 The
Payment at Maturity at the request of the Trustee shall be determined by the Calculation Agent pursuant to the Calculation Agency Agreement. The Trustee shall fully rely on the determination by the Calculation Agent of the Payment at Maturity and
shall have no duty to make any such determination. The Calculation Agent will provide written notice to the Trustee at its New York office, on which notice the Trustee may conclusively rely, of the Payment at Maturity on or prior to 11:00 a.m. on
the Business Day preceding the Maturity Date. 
 All calculations with respect to the Basket Ending Level and the Basket Return will be
rounded to the nearest one hundred-thousandth, with five one-millionths rounded upward (e.g., .876545 would be rounded to .87655); all dollar amounts related to determination of the payment per $1,000 principal amount Security at maturity
will be rounded to the nearest ten-thousandth, with five one hundred-thousandths rounded upward (e.g., .76545 would be rounded up to .7655); and all dollar amounts paid on the aggregate principal amount of Securities per Holder will be
rounded to the nearest cent, with one-half cent rounded upward. 
 This Security is not subject to any sinking fund. 
 If an Event of Default with respect to the Securities shall occur and be continuing, the amounts payable on all of the Securities may be declared due and
payable in the manner and with the effect provided in the Indenture. The amount payable to the Holder hereof upon any acceleration permitted under the Indenture will be equal to the Payment at Maturity calculated as though the date of acceleration
were the Maturity Date and the third Business Day immediately preceding the date of acceleration were the Valuation Date. If the maturity of the Securities is accelerated because of an Event of Default, the Company shall, or shall cause the
Calculation Agent to, provide written notice to the Trustee at its New York office, on which notice the Trustee may conclusively rely, and to The Depository Trust Company of the cash amount due with respect to the Securities as promptly as possible
and in no event later than two Business Days after the date of acceleration. 

 The Indenture contains provisions permitting the
Company and the Trustee, with the consent of the holders of not less than 66 2/3% in aggregate principal amount
of each series of Securities at the time Outstanding to be affected (each series voting as a class), evidenced as in the Indenture provided, to execute supplemental indentures adding any provisions to, or changing in any manner or eliminating any of
the provisions of the Indenture or of any supplemental indenture or modifying in any manner the rights of the holders of the Securities of all such series; provided, however, that no such supplemental indenture shall, among
other things, (i) change the fixed maturity of any Security, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, if any, or reduce any premium payable on redemption, or make the
principal thereof, or premium, if any, or interest thereon, if any, payable in any coin or currency other than that hereinabove provided, without the consent of the holder of each Security so affected, or (ii) change the place of payment on any
Security, or impair the right to institute suit for payment on any Security, or reduce the aforesaid percentage of Securities, the holders of which are required to consent to any such supplemental indenture, without the consent of the holders of
each Security so affected. It is also provided in the Indenture that, prior to any declaration accelerating the maturity of any series of Securities, the holders of a majority in aggregate principal amount of the Securities of such series
Outstanding may on behalf of the holders of all the Securities of such series waive any past default or Event of Default under the Indenture with respect to such series and its consequences, except a default in the payment of interest, if any, or
the principal of, or premium, if any, on any of the Securities of such series, or in the payment of any sinking fund installment or analogous obligation with respect to Securities of such series. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future holders and owners of this Security and any Securities which may be issued in exchange or substitution hereof, irrespective of whether or not any notation thereof is made
upon this Security or such other Securities. 
 No reference herein to the Indenture and no provision of this Security or of the
Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the Payment at Maturity with respect to this Security. 
 The Securities are issuable in denominations of $1,000 and any whole multiples of $1,000. 
 The Company, the
Trustee, and any agent of the Company or of the Trustee may deem and treat the registered holder (the “Holder”) hereof as the absolute owner of this Security (whether or not this Security shall be overdue and notwithstanding any
notation of ownership or other writing hereon), for the purpose of receiving payment hereof, or on account hereof, and for all other purposes and neither the Company nor the Trustee nor any agent of the Company or of the Trustee shall be affected by
any notice to the contrary. All such payments made to or upon the order of such registered holder shall, to the extent of the sum or sums paid, effectually satisfy and discharge liability for moneys payable on this Security. 
 No recourse for the payment of the principal of, premium, if any, or interest on this Security, or for any claim based hereon or otherwise in respect
hereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or any indenture supplemental thereto or in any Security, or because of the creation of any indebtedness represented 

  

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thereby, shall be had against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or of any successor
corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the
acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released. 
 As provided in the Indenture and
subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the Corporate Trust Office or agency in a Place of Payment for
this Security, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and
thereupon one or more new Securities of this series or of like tenor and of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
 The Company intends to treat, and by purchasing this Security, the Holder agrees to treat, for all tax purposes, this Security as a cash-settled
financial contract, rather than as a debt instrument. 
 THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK. 
 Definitions 
 Set forth below are definitions of the terms used in this Security. 
 “Basket” shall mean the basket of four indices to which the Securities are linked. The Basket consists of the MSCI Singapore Free Index SM, the MSCI Taiwan SM Index, the Nikkei 225SM Index and the KOSPI 200 Index SM. 
 “Basket Ending Level”, as calculated by the Calculation Agent, is calculated as follows: 
 Basket Starting Level × [1 + (the sum of (Basket Index Return × Index Weighting) 
 for all Basket Indices)] 
 “Basket Index” refers to each of the MSCI Singapore Free IndexSM, theMSCI Taiwan SM
Index, the Nikkei 225SM Index and the KOSPI 200 Index
SM. 
 “Basket Index Ending Level” of a
Basket Index is the Closing Level of that Basket Index on the Valuation Date. 
 “Basket Index Return”, as calculated by the
Calculation Agent, is calculated as follows for each Basket Index: 
  

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 Basket Index Ending Level – Basket Index Starting Level 
 Basket Index Starting Level 
 “Basket
Index Starting Level” for each of the four Basket Indices is as follows: 
  

			
	 MSCI Singapore Free Index SM
	  	463.73
	 MSCI Taiwan SM Index
	  	382.30
	 Nikkei 225SM Index
	  	16,651.01
	 KOSPI 200 Index SM
	  	258.87

 “Basket Index Sponsor”
with respect to each Basket Index shall be as follows: (A) with respect to MSCI Singapore Free Index SM (SGY) and (B) MSCI Taiwan SM Index (TWY), Morgan Stanley Capital International Inc. (“MSCI”), (C) Nikkei 225 SM
Index (NKY), Nikkei Inc., (D) KOSPI 200 Index SM (KOSPI2), the Korea Exchange. The Calculation
Agent, in its sole discretion, may select new Index Sponsors as described under “Discontinuation of a Basket Index; Alteration of Method of Calculation.” 
 “Basket Return”, as calculated by the Calculation Agent, is calculated as follows: 
 Basket Ending Level – Basket Starting Level 
 Basket Starting Level 
 “Basket Starting Level” shall equal 100. 
 “Buffer Amount” shall equal 15%. 
 “Business Day”, notwithstanding any provision in the Indenture, shall mean any day that is not a Saturday or Sunday and that is not a day on which banking institutions in the City of New York are authorized or obligated by
law to close. 
 “Calculation Agency Agreement” shall mean the Calculation Agency Agreement, dated as of December 21,
2006 between the Company and the Calculation Agent, as amended from time to time, or any successor calculation agency agreement. 
 “Calculation Agent” shall mean the person that has entered into an agreement with the Company providing for, among other things, the determination of the Payment at Maturity, which term shall, unless the context otherwise
requires, include its successors and assigns. The initial Calculation Agent shall be Lehman Brothers Inc. 
 “Closing Level”
of a Basket Index on any Trading Day will equal the official closing level of such Basket Index, or any Successor Index thereto, published following the regular official weekday close of trading for such Basket Index on that Trading Day. 

“Closing Price” of a security, on any particular day, means the last reported sales price for that security on the Relevant Exchange
at the scheduled weekday closing time of the regular trading session of the Relevant Exchange. If, however, the security is not listed or traded on a bulletin board, then the Closing Price of the security will be determined using the average 

  

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execution price per share that an affiliate of the Company pays or receives upon the purchase or sale of the security used to hedge the Company’s
obligations under the Securities. 
 “Company” shall have the meaning set forth on the face of this Security. 
 “Holder” shall have the meaning set forth on the reverse of this Security. 
 “Indenture” shall have the meaning set forth on the reverse of this Security. 
 “Index Weighting” shall mean, with respect to each Basket Index, the weighting for such Basket Index (each an “Index
Weighting”). The Index Weightings of the four Basket Indices are as follows: 
  

				
	 MSCI Singapore Free Index SM
	  	25	%
	 MSCI Taiwan SM Index
	  	25	%
	 Nikkei 225SM Index
	  	25	%
	 KOSPI 200 Index SM
	  	25	%

 “Market Disruption Event”, with respect to any of the Basket Indices (or any
Successor Index), means: 
  

	 	•	 	 a suspension, absence or material limitation of trading of stocks then constituting 20% or more of the level of such Basket Index (or the relevant Successor Index)
on the Relevant Exchanges for such securities at any time during the one hour period preceding the close of the principal trading session on such Relevant Exchange; 

  

	 	•	 	 a breakdown or failure in the price and trade reporting systems of the primary market of any Relevant Exchange as a result of which the reported trading prices for
stocks then constituting 20% or more of the level of such Basket Index (or the relevant Successor Index) at any time during the one hour period preceding the close of the principal trading session on such Relevant Exchange are materially inaccurate;

  

	 	•	 	 a suspension, absence or material limitation of trading on any major securities exchange for trading in futures or options contracts or exchange traded funds
related to such Basket Index (or the relevant Successor Index) at any time during the one hour period preceding the close of the principal trading session on such exchange; or 

  

	 	•	 	 a decision to permanently discontinue trading in the relevant futures or options contracts or exchange traded funds; 

 in each case as determined by the Calculation Agent in its sole discretion. 
 For the purpose of determining whether a Market Disruption Event exists at any time, if trading in a security included in a Basket Index (or the relevant Successor Index) is materially suspended or materially limited
at that time, then the relevant percentage contribution 

  

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of that security to the level of such Basket Index (or the relevant Successor Index) shall be based on a comparison of: 
  

	 	•	 	 the portion of the level of such Basket Index (or the relevant Successor Index) attributable to that security relative to 

  

	 	•	 	 the overall level of such Basket Index (or the relevant Successor Index), 

 in each case immediately before that suspension or limitation. 
 For purposes of determining whether a
Market Disruption Event has occurred: 
  

	 	•	 	 a limitation on the hours or number of days of trading will not constitute a Market Disruption Event if it results from an announced change in the regular business
hours of the Relevant Exchange or market; 

  

	 	•	 	 limitations pursuant to the rules of any Relevant Exchange similar to NYSE Rule 80B (or any applicable rule or regulation enacted or promulgated by any other
self-regulatory organization or any government agency of scope similar to NYSE Rule 80B as determined by the Calculation Agent in its sole discretion) on trading during significant market fluctuations will constitute a suspension, absence or
material limitation of trading; 

  

	 	•	 	 a suspension of trading in futures or options contracts on a Basket Index (or the relevant Successor Index) by the primary securities market trading in such
contracts by reason of: 

  

	 	•	 	 a price change exceeding limits set by such exchange or market, 

  

	 	•	 	 an imbalance of orders relating to such contracts, or 

  

	 	•	 	 a disparity in bid and ask quotes relating to such contracts 

 will, in each such case, constitute a suspension, absence or material limitation of trading in futures or options contracts related to such Basket Index (or the relevant Successor Index); and 
  

	 	•	 	 a suspension, absence or material limitation of trading on any Relevant Exchange or on the primary market on which futures or options contracts related to a Basket
Index (or the relevant Successor Index) are traded will not include any time when such market is itself closed for trading under ordinary circumstances. 

 “Maturity Date” shall mean November 2, 2010, unless that day is not a Business Day, in which case the amount equal to the Payment at Maturity that would otherwise be due on the scheduled Maturity
Date will instead be due on the next succeeding Business Day following such scheduled Maturity Date, with the same effect as if paid on the scheduled Maturity Date; provided that if due to a non-Trading Day or a Market Disruption Event, the
Valuation Date is postponed so that it falls less than three Business Days prior to the scheduled Maturity Date, the Maturity Date will be the third Business Day following the Valuation Date, as postponed. 
  

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 “Participation Rate” shall equal 100%. 
 “Payment at Maturity”, as calculated by the Calculation Agent for each $1,000 principal amount Security, shall equal: 
  

	 	•	 	 If the Basket Return is positive, $1,000 + [$1,000 × (Basket Return × Participation Rate)] 

  

	 	•	 	 If the Basket Return is equal to or less than zero, and the absolute value is less than or equal to the Buffer Amount, $1,000. 

  

	 	•	 	 If the Basket Return is negative and the absolute value of the Buffer return is greater than the Buffer Amount, $1,000 + $1,000 × (Basket Return + Buffer
Amount). 

 “Place of Payment” shall mean the place or places where the Payment at Maturity on the
Securities is payable. 
 “Pricing Date” shall mean October 30, 2007. 
 “Relevant Exchange” for any security (or any combination thereof) then included in a Basket Index or any Successor Index, means the
primary exchange, quotation system (which includes bulletin board services) or other market of trading for such security. 
 “Securities” shall have the meaning set forth on the reverse of this Security. 
 “Successor
Index” shall have the meaning specified under “Discontinuation of a Basket Index; Alteration of Method of Calculation” with respect to each Basket Index. 
 “Trading Day” means a day, as determined by the Calculation Agent, on which trading is generally conducted (i) on the Relevant
Exchanges for securities included in the Basket Index (or the relevant Successor Index) and (ii) the exchanges on which futures or options contracts related to the Basket Index (or the relevant Successor Index) are traded, other than a day on
which trading on such Relevant Exchange or exchange on which such securities, futures or options contracts are traded is scheduled to close prior to its scheduled weekday closing time. 
 “Trustee” shall have the meaning set forth on the reverse of this Security. 
 “Valuation Date” shall mean October 28, 2010; provided, however, that if the Valuation Date is not a Trading Day or if there is a
Market Disruption Event on such day, with respect to a Basket Index, the Calculation Agent will: 
  

	 	•	 	 with respect to each Basket Index for which such day is a Trading Day and for which a Market Disruption Event has not occurred, determine the Closing
Level of such Basket Index for use in calculating the Basket Index Ending Level by reference to the Closing Level of such Basket Index on that Trading Day; and 

  

	 	•	 	 with respect to each Basket Index for which such day is not a Trading Day or for which a Market Disruption Event has occurred, determine the Closing
Level of such Basket Index 

  

 7 

	 	 
for use in calculating the Basket Index Ending Level by reference to the Closing Level of such Basket Index on the next Trading Day for such Basket Index on
which there is not a Market Disruption Event; provided, however, if a Market Disruption Event with respect to such Basket Index occurs on each of the eight Trading Days following the originally scheduled Valuation Date, then the Calculation
Agent shall determine the Closing Level of such Basket Index for use in calculating the Basket Index Ending Level in accordance with the formula for and method of calculating the Closing Level of such Basket Index last in effect prior to
commencement of the Market Disruption Event (or prior to the non-Trading Day), using the closing price (or, if trading in the relevant securities has been materially suspended or materially limited, its good faith estimate of the closing price that
would have prevailed but for such suspension or limitation or non-Trading Day) on such eighth scheduled Trading Day of each security most recently included in the Basket Index. 

 All terms used but not defined in this Security are used herein as defined in the Calculation Agency Agreement or the Indenture. 
 Calculation Agent 
 The Calculation Agent will
determine, among other things, the Basket Ending Level (including each Basket Index Return and each Basket Index Ending Level), the Basket Return and the Payment at Maturity, if any, on the Securities. In addition, the Calculation Agent will
determine whether there has been a Market Disruption Event or a discontinuation of any Basket Index (or the relevant Successor Index) and whether there has been a material change in the method of calculating any of the Basket Indices. All
calculations, determinations and adjustments made by the Calculation Agent will be at the sole discretion of the Calculation Agent and will, in the absence of manifest error, be conclusive for all purposes and binding on Holders and on the Company.
The Company may appoint a different Calculation Agent from time to time after the date of the original issue of the Securities without Holders’ consent and without notifying Holders. 
 Discontinuation of a Basket Index; Alteration of Method of Calculation 
 If a Basket Index Sponsor discontinues publication of the related Basket Index and such Basket Index Sponsor or another entity publishes a successor or substitute index that the Calculation Agent determines, in its
sole discretion, to be comparable to the discontinued Basket Index (a “Successor Index”), then the Index Closing Level of such Basket Index will be determined by reference to the level of such Successor Index at the close of trading on the
Relevant Exchange or market for the Successor Index on any Trading Day. Upon any selection by the Calculation Agent of a Successor Index, the Calculation Agent will cause written notice thereof to be promptly furnished to the Trustee, to the Company
and to the Holders. 
 If a Basket Index Sponsor discontinues publication of the related Basket Index, and such discontinuation is continuing
on any Trading Day, and the Calculation Agent determines, in its sole discretion, that no Successor Index for such Basket Index is available at such time, or if the Calculation Agent has previously selected a Successor Index for such Basket Index
and publication of such Successor Index is discontinued, and such discontinuation is continuing on any 

  

 8 

 
Trading Day, or if the Basket Index Sponsor (or the publisher of any Successor Index) fails to calculate and publish an Index Closing Level for such Basket
Index (or any Successor Index) on any date when it would ordinarily do so in accordance with its customary practice, then the Calculation Agent will determine such Index Closing Level for such Trading Day or such date. The Index Closing Level for
such Basket Index will be computed by the Calculation Agent in accordance with the formula for and method of calculating the Basket Index or Successor Index, as applicable, last in effect on the date prior to such discontinuation or failure to
calculate or publish an Index Closing Level for the Basket Index or Successor Index, as applicable, using the Closing Price (or, if trading in the relevant securities has been materially suspended or materially limited, its good faith estimate of
the Closing Price that would have prevailed but for such suspension or limitation) at the close of the principal trading session on such date of each security most recently included in the Basket Index or Successor Index, as applicable. 

If at any time the method of calculating the Basket Index or a Successor Index, or the level thereof, is changed in a material respect, or if the
Basket Index or a Successor Index is in any other way modified so that the Basket Index or such Successor Index does not, in the opinion of the Calculation Agent, fairly represent the level of the Basket Index or such Successor Index in the absence
of such changes or modifications, then the Calculation Agent will, at the close of business in New York City on each date on which the Index Closing Level for such Basket Index is to be determined, make such calculations and adjustments as, in the
good faith judgment of the Calculation Agent, may be necessary in order to arrive at a level of a stock index comparable to the Basket Index or such Successor Index, as the case may be, as if such changes or modifications were not made, and the
Calculation Agent will calculate the Index Closing Level with reference to the Basket Index or such Successor Index, as adjusted. Accordingly, if the method of calculating the Basket Index or a Successor Index is modified so that the level of the
Basket Index or such Successor Index is a fraction of what it would have been if there had been no such modification (e.g., due to a split in the Index), then the Calculation Agent will adjust its calculation of the Basket Index or such
Successor Index in order to arrive at a level of the Basket Index or the Successor Index as if there had been no such modification (e.g., as if such split had not occurred). 
  

 9 

 The following abbreviations, when used in the inscription on the face of the within Security, shall be
construed as though they were written out in full according to applicable laws or regulations: 
  

							
	TEN COM -	    	as tenants in common	    	UNIF GIFT MIN ACT - _________ Custodian  _________
		    		    	                          (Cust)             
     (Minor)

	TEN ENT -	    	as tenants by the entireties	    	under Uniform Gifts to Minors
	JT TEN -	    	as joint tenants with right of	    	Act	  	  

		    	Survivorship and not as tenants in common	    		  	( State)

 Additional abbreviations may also be used though not in the above list. 
                                       
                   
 FOR VALUE RECEIVED, the
undersigned hereby sells, assigns and transfers unto 
 PLEASE INSERT SOCIAL SECURITY OR OTHER 
 IDENTIFYING NUMBER OF ASSIGNEE 
  

			
	 	 	
	 	 	

  
  

	
	 

 (Name and Address of Assignee, including zip code, must be printed or typewritten.) 
  
  

	
	 

 the within Security, and all rights thereunder, hereby irrevocably constituting and appointing 
  
  
  

	
	 

 to transfer the said Security on the books of the Company, with full power of substitution in the premises.

 Dated: 
 __________________________________________ 
 NOTICE: The signature to this assignment must correspond with the name as it appears
upon the face of the within Security in every particular, without alteration or enlargement or any change whatever. 
 Signature(s) Guaranteed: 

_____________________________ 
 THE SIGNATURE(S) SHOULD BE GUARANTEED BY
AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND 

  

 10 

 
CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED MEDALLION SIGNATURE GUARANTEE PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15. 
  

 11Consent and Omnibus Amendment

 EXHIBIT 4.23 
 CONSENT AND OMNIBUS AMENDMENT TO TRANSACTION DOCUMENTS 
 This CONSENT AND OMNIBUS AMENDMENT TO
TRANSACTION DOCUMENTS (this “Amendment”) is dated as of January 5, 2006 and is entered into by and among Gastar Exploration Ltd., an Alberta corporation, with headquarters located at 2480 W. Campus Drive, Building C, Mt. Pleasant,
Michigan 48858 (“Borrower”), Promethean Asset Management L.L.C., a Delaware limited liability company, in its capacity as agent (in such capacity, the “Agent”) for the “Buyers” party to the Purchase Agreement described
below, the Buyers that are signatories hereto, and the subsidiaries of Borrower that are signatories hereto (such subsidiaries, together with Borrower, are sometimes referred to herein individually as a “Loan Party” and collectively as the
“Loan Parties”). 
 WHEREAS, Buyers and Borrower are parties to a certain Securities Purchase Agreement dated as of
June 16, 2005, as amended by that certain First Amendment to Securities Purchase Agreement dated as of September 6, 2005 (as amended, the “Purchase Agreement”), pursuant to which, among other things, Borrower sold to each of the
Buyers the Initial Notes and the Initial Shares; 
 WHEREAS, Borrower has notified Agent and Buyers of its desire to effectuate a
restructuring pursuant to which 
 (a) first, effective January 5, 2006, each of Squaw Creek, Inc., a Delaware corporation and
indirect wholly-owned subsidiary of the Borrower, First Source Development, Inc., a Michigan corporation and indirect wholly-owned subsidiary of the Borrower, Oil and Gas Services, Inc., a Delaware corporation and indirect wholly-owned subsidiary of
the Borrower, First Appalachian Development, Inc., a Michigan corporation and indirect wholly-owned subsidiary of the Borrower (“FAD”), and First Sourcenergy Kansas Inc., a Delaware corporation and indirect wholly-owned subsidiary of the
Borrower, shall be merged with and into First Sourcenergy Wyoming, Inc., a Michigan corporation (“FSW”), with FSW as the surviving corporation, and the legal name of FSW shall be changed to “Gastar Exploration USA, Inc.”;

 (b) second, effective January 5, 2006, New Energy West (U.S.A.) Corporation, a California corporation and indirect
wholly-owned subsidiary of the Borrower, shall be dissolved and shall cease to exist; 
 (c) third, effective January 5, 2006,
the legal name of First Texas Development, Inc., a Michigan corporation and indirect wholly-owned subsidiary of the Borrower, shall be changed to “Gastar Exploration Texas, Inc.”; 
 (d) fourth, effective January 5, 2006, the legal name of First Source Gas, LP, a Delaware limited partnership and indirect wholly-owned
subsidiary of the Borrower, shall be changed to “Gastar Exploration Texas LP”; 
 (e) fifth, effective January 5, 2006,
the legal name of Bossier Basin, LLC, a Delaware limited liability company and indirect wholly-owned subsidiary of the Borrower, shall be changed to “Gastar Exploration Texas LLC”; 
 (f) sixth, effective January 5, 2006, the legal name of First Sourcenergy Group, Inc., a Michigan corporation and indirect wholly-owned
subsidiary of the Borrower, shall be changed to “Gastar Exploration New South Wales, Inc.”; 
 (g) seventh, effective
January 5, 2006, the legal name of First Sourcenergy Victoria, Inc., a Michigan corporation and indirect wholly-owned subsidiary of the Borrower, shall be changed to “Gastar Exploration Victoria, Inc.”; 
 (h) eighth, effective January 5, 2006, each of 616694 Alberta Ltd., an Alberta corporation and indirect wholly-owned subsidiary of the
Borrower, Monterey Resources Inc., an Alberta corporation and indirect wholly owned subsidiary of the Borrower, and New Energy West Corporation, an Alberta corporation and direct wholly-owned subsidiary of the Borrower (“NEW”), shall be
merged, with NEW as the surviving corporation; 
  

 1 

 (i) ninth, effective December 22, 2005, 1075191 Ontario Ltd., an Ontario corporation and
direct wholly-owned subsidiary of the Borrower, shall be continued into Alberta, Canada as 1212117 Alberta Ltd., an Alberta corporation (“1212117”); and 
 (j) tenth, effective January 5, 2006, NEW, 1212117 and the Borrower shall be merged, with the Borrower as the surviving corporation 
 ((a) – (j) collectively, the “Restructuring”); 
 WHEREAS, in addition to the amendments to the Transaction Documents necessitated by the Restructuring, Borrower seeks to modify other provisions of the Purchase Agreement and certain of the other Transaction
Documents; 
 WHEREAS, pursuant to (a) Section 9(e) of the Purchase Agreement, no provision of the Purchase Agreement may be
amended, modified or supplemented other than by an instrument in writing signed by the Borrower and the Buyers that purchased at least two-thirds (2/3) of the aggregate principal amount of the Initial Notes on the Initial Closing Date, and
(b) Section 5.4 of the Security Agreement, the terms of the Security Agreement may be waived, altered or amended only by an instrument in writing duly executed by the Debtor sought to be charged or benefited thereby and the Agent; and

 WHEREAS, Borrower has requested that the Agent and the Buyers that purchased at least two-thirds (2/3) of the aggregate principal
amount of the Initial Notes on the Initial Closing Date (i) consent to the consummation of the Restructuring and (ii) agree to amend certain provisions of the Purchase Agreement and certain of the other Transaction Documents as hereinafter
set forth. 
 NOW THEREFORE, in consideration of the mutual conditions and agreements set forth in the Purchase Agreement, the other
Transaction Documents and this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. Definitions. Capitalized terms used in this Amendment, unless otherwise defined herein, shall have the meaning ascribed to such terms in
the Purchase Agreement. 
 2. Consent to Restructuring. Effective as of the Omnibus Amendment Effective Date (as defined
below), upon satisfaction of the conditions precedent set forth in Section 5 of this Amendment, and in reliance upon the representations and warranties of the Loan Parties set forth in the Purchase Agreement, in the other Transaction
Documents and in this Amendment, and notwithstanding anything to the contrary contained in the Purchase Agreement, the Agent and the Buyers consent to the Restructuring. 
 3. Amendments to Purchase Agreement. Subject to satisfaction of the conditions precedent set forth in Section 5 of this Amendment, the Purchase Agreement is amended as follows: 
 (a) Section 9(f) of the Purchase Agreement shall be amended in its entirety and as so amended shall read as follows: 
 “f. Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically
generated and kept on file by the sending party); (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same; or (iv) upon actual
and specific acknowledgement by the recipient of its receipt in an acceptable format (it being understood and agreed that an acknowledgement of receipt that is 

  

 2 

 
automatically generated by an e-mail program without regard to whether the attachment has been opened or is readable shall not be deemed sufficient for the
foregoing purposes), when delivered via e-mail as a separate attachment in “pdf” or other read-only form deemed acceptable by recipient. The addresses, facsimile numbers and e-mail addresses for such communications shall be: 
 If to the Company: 
 Gastar Exploration, Ltd.

 1331 Lamar Street, Suite 1080 
 Houston, Texas 77010 
 Telephone:      (713) 739-1800 
 Facsimile:       (713) 739-0458 
 E-mail: rporter@gastar.com 
 Attention:        Chief Executive
Officer 
 With a copy to: 
 Vinson & Elkins L.L.P. 
 First City Tower 
 1001 Fannin Street, Suite 2300 
 Houston, Texas 77002-6760 
 Telephone:      (713) 758-2222 
 Facsimile:       (713) 758-2346 
 E-mail: mkelly@velaw.com 
 Attention:        T. Mark Kelly 
 If to the Transfer Agent: 
 CIBC Mellon Trust Company 
 200 Queen Quay East, Unit 6 
 Toronto, Ontario
M5A 4K9 
 Telephone:      (416) 643-5000 
 Facsimile:       (416) 643-5570 
 E-mail:
                                     
 Attention: VP, Client Services 
 If to a Buyer, to it at the address, facsimile number and e-mail address set forth on the Schedule of Buyers, with copies to such Buyer’s representatives as set forth on the Schedule of Buyers, or, in the case of a Buyer
or any other party named above, at such other address and/or facsimile number and/or e-mail address and/or to the attention of such other person as the recipient party has specified by written notice given to each other party five (5) days
prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile
machine containing the time, date, recipient facsimile number and an image of the first page of such transmission, (C) provided by a nationally recognized overnight delivery service or (D) actually and specifically provided by the
recipient acknowledging its ability to review such e-mailed notice, consent, waiver, or other communication shall be rebuttable evidence of personal service, receipt by facsimile, deposit with a nationally recognized overnight delivery service or
e-mail delivery in accordance with clause (i), (ii), (iii) or (iv) above, respectively.” 
 (b) The Schedule of Buyers
to the Purchase Agreement shall be amended in its entirety and as so amended shall read as set forth on Exhibit A attached hereto 
  

 3 

 (c) Schedule 3(a) to the Purchase Agreement shall be amended in its entirety and as so amended
shall read as set forth on Exhibit B attached hereto. 
 4. Amendments to Transaction Documents. Subject to the
conditions set forth below, the Transaction Documents are amended as follows: 
 (a) Subsequent to the consummation of the Restructuring, all
references in the Transaction Documents to (i) “First Sourcenergy Wyoming, Inc., a Michigan corporation” shall instead be references to “Gastar Exploration USA, Inc., a Michigan corporation” and “FSW” shall instead
be references to “Gastar USA”, (ii) “First Sourcenergy Group, Inc., a Michigan corporation” shall instead be references to “Gastar Exploration New South Wales, Inc., a Michigan corporation” and “FSG”
shall instead be references to “Gastar NSW”, (iii) “First Sourcenergy Victoria, Inc., a Michigan corporation” shall instead be references to “Gastar Exploration Victoria, Inc., a Michigan corporation” and
“FSV” shall instead be references to “Gastar Victoria”, (iv) “First Texas Development, Inc., a Michigan corporation” shall instead be references to “Gastar Exploration Texas, Inc., a Michigan corporation”
and “FTD” shall instead be references to “Gastar Texas, Inc.”, (v) “First Source Gas, LP, a Delaware limited partnership” shall instead be references to “Gastar Exploration Texas LP, a Delaware limited
partnership” and “FSG LP” shall instead be references to “Gastar Texas LP” and (vi) “Bossier Basin, LLC, a Delaware limited liability company” shall instead be references to “Gastar Exploration Texas LLC,
a Delaware limited liability company” and “BB LLC” shall instead be references to “Gastar Texas LLC.” 
 (b)
Section 4.5(a) of the Security Agreement shall be amended in its entirety and as so amended shall read as follows: 
 “(a) On or prior to the date hereof, the Secured Party and each Debtor, as applicable, shall enter into an account control agreement or securities account control agreement, as applicable (each an “Account Control
Agreement”), in a form specified by the Secured Party, with each financial institution with which such Debtor maintains from time to time any Deposit Accounts (general or special), securities accounts, brokerage accounts or other similar
accounts (which financial institutions are set forth on Schedule VI attached hereto), other than Excluded Accounts (as defined below). Pursuant to the Account Control Agreements and pursuant hereto, each such Debtor grants and shall grant to
the Secured Party a continuing lien upon, and security interest in, all such accounts and all funds at any time paid, deposited, credited or held in such accounts (whether for collection, provisionally or otherwise) or otherwise in the possession of
such financial institutions, and each such financial institution shall act as the Secured Party’s agent in connection therewith. Following the Initial Closing Date, except as set forth in Section 4(t) of the Purchase Agreement, no Debtor
shall establish any Deposit Account, securities account, brokerage account or other similar account with any financial institution (other than Excluded Accounts) unless prior thereto, the Secured Party and such Debtor shall have entered into an
Account Control Agreement with such financial institution which purports to cover such account. Except for funds on deposit in the Excluded Accounts or as otherwise set forth in Section 4(t) of the Purchase Agreement, each Debtor shall deposit
into, and shall keep on deposit all of its funds in, a Deposit Account which is subject to an Account Control Agreement. For purposes of this Agreement, “Excluded Accounts” means (i) the Initial Account (as defined in the
Purchase Agreement) and (ii) one Deposit Account of the Debtors maintained at a financial institution located in Canada solely for the purpose of payment of fees and expenses of Borrower that are payable in Canadian currency, including, but not
limited to, Toronto Stock Exchange listing fees, Canadian counsel fees or other similar charges and provincial taxes (the “Canadian Account”); provided, that the maximum balance in the Canadian Account does not exceed
CDN$200,000 at any one time.” 
 (c) Schedules I, II and VI to the Security Agreement shall be amended in their entirety and as
so amended shall read as set forth on Exhibit C attached hereto. 
 (d) The Exhibits to the Pledge Agreements shall be amended in
their entirety and as so amended shall read as set forth on Exhibit D attached hereto. 
  

 4 

 5. Conditions. The effectiveness of this Amendment is subject to the following conditions
precedent: 
 (a) each Loan Party shall have executed and delivered this Amendment; 
 (b) Borrower shall have delivered evidence satisfactory to Agent and each of the Buyers, in their sole discretion, that the Restructuring shall have been
consummated; 
 (c) Gastar Exploration USA, Inc., as the successor-in-interest to FSW, as the successor-in-interest to FAD, shall have
executed and delivered a Confirmatory Deed with regard to each of the Mortgages of record in the State of West Virginia made by FAD in favor of the Agent, for the benefit of the Buyers, giving effect to the merger of FAD with and into FSW, with FSW
as the surviving corporation, and the change in the legal name of FSW to Gastar Exploration USA, Inc., in each case pursuant to the Restructuring, each of which Confirmatory Deeds shall be in form and substance satisfactory to Agent and each of the
Buyers; 
 (d) each Loan Party that has changed its legal name as a result of the Restructuring shall have delivered written notice of such
name change to each depository bank that is a party to a Deposit Account Control Agreement of which such Loan Party is also a party in accordance with the terms of such Deposit Account Control Agreement, copies of which notices shall have been
delivered to Agent and each of the Buyers; 
 (e) 1212117 shall have executed and delivered a Joinder to Guaranty, in the form of Exhibit
E attached hereto, and a Joinder to Security Agreement, in the form of Exhibit F attached hereto; 
 (f) Borrower shall have
caused each of its Subsidiaries (other than Gastar Exploration Texas LLC and Gastar Exploration Texas LP) to issue replacement stock certificates evidencing one hundred percent (100%) of the issued and outstanding capital stock of such
Subsidiary after giving effect to the consummation of the Restructuring, shall have delivered such stock certificates, along with assignments separate from certificate executed in blank and irrevocable proxies executed by the applicable Loan Party,
to the Agent in accordance with the Pledge Agreements, and shall have stamped each of the original stock certificates of which such replacement certificates are being issued “cancelled”; 
 (g) all proceedings taken in connection with the transactions contemplated by this Amendment and the Restructuring, and all documents, instruments and
other legal matters incident thereto, shall be satisfactory to Agent, its legal counsel, and each of the Buyers; 
 (h) no Event of Default
(as defined in the Initial Notes) shall have occurred and be continuing or would arise from the Loan Parties entering into this Amendment or any of the other agreements, documents and instruments to be executed by each such Person pursuant to this
Amendment (collectively, the “Other Amendment Documents”) or, after giving effect to the consent set forth in Section 1 above, from the consummation of the Restructuring; 
 (i) all of the representations and warranties set forth in Section 6 below shall be true, complete and correct; 
 (j) Borrower shall have delivered such evidence of the authority of the Loan Parties to execute, deliver and perform its obligations under this Amendment
and all of the Other Amendment Documents, and such evidence of the authority of the Borrower and its Subsidiaries to consummate the Restructuring, as the Agent and each of the Buyers may require, including but not limited to (i) a copy of
resolutions duly adopted by the board of directors (or other governing authority) of each such Person, authorizing the execution by each such Person of this Amendment and the Other Amendment Documents, as well as all agreements, documents and
instruments to be executed by each such Person in connection with the consummation of the Restructuring, in each case certified as complete and correct by the corporate secretary or similar officer of each such Person, (ii) such other approvals
and/or consents as may be required from all other Persons whose approval or consent is necessary or required to enable the Loan Parties to enter into this Amendment and the Other Amendment Documents, to perform their respective obligations hereunder
and thereunder and to consummate the Restructuring, (iii) certificates of merger or 

  

 5 

 
amalgamation or other evidence that the transactions contemplated by the Restructuring have been approved by applicable governmental authorities and
(iv) a certificate of the secretary of each of the Loan Parties attaching and certifying as to each of the organizational documents of such Loan Party, as such organizational documents are in effect after giving effect to the consummation of
the Restructuring, in each case certified by the Secretary of State (or similar, applicable governmental authority) of the state of incorporation or formation of each Loan Party, if and as applicable; 
 (k) Borrower shall have paid all fees and expenses of the Agent in connection with this Amendment, including, without limitation, attorneys’ fees
and expenses; and 
 (l) each Loan Party shall have delivered such other instruments, documents, certificates, consents, waivers and opinions
as the Agent and any of the Buyers may request. 
 The date on which the foregoing conditions shall have been satisfied shall be referred to herein as the
“Omnibus Amendment Effective Date.” 
 6. Representations and Warranties. To induce Agent and Buyers to enter into
this Amendment, each Loan Party, jointly and severally, represents and warrants to Agent and Buyers: 
 (a) that it has full power and
authority to execute and deliver this Amendment and the Other Amendment Documents, to perform its obligations hereunder and thereunder and to consummate the Restructuring, and that the execution, delivery and performance of this Amendment and the
Other Amendment Documents have been duly authorized by all requisite action on the part of such Loan Party, that this Amendment and such Other Amendment Documents have been duly executed and delivered by such Loan Party and that the Restructuring
has been duly authorized by all requisite action on the part of such Loan Party and any other Persons whose authorization or consent is required in connection with the consummation thereof; 
 (b) that upon the execution and delivery hereof and thereof, this Amendment and the Other Amendment Documents will be valid, binding and enforceable upon
it in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors rights generally or by equitable principles relating to enforceability;

 (c) that each of the representations and warranties set forth in the Purchase Agreement and the other Transaction Documents (other than
those which, by their terms, specifically are made as of certain date prior to the date hereof) are true, correct and complete in all respects as of the date hereof; 
 (d) that no approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any court or governmental agency or any regulatory or self-regulatory agency is necessary or required in
connection with the execution, delivery or performance by, or enforcement against, the Loan Parties of this Amendment and/or the Other Amendment Documents or, except for those obtained or made on or prior to the date hereof in connection with the
Restructuring, in connection with the consummation of the Restructuring; 
 (e) that the execution and delivery of this Amendment and the
Other Amendment Documents by such Loan Party, the performance by such Loan Party of its obligations hereunder and thereunder and the consummation of the Restructuring will not (i) result in a violation of the organizational documents of such
Loan Party; (ii) conflict with, or constitute a breach or default (or an event which, with the giving of notice or lapse of time or both, constitutes or would constitute a breach or default) under, or give to others any right of termination,
amendment, acceleration or cancellation of, or other remedy with respect to, any agreement, indenture or instrument to which such Loan Party is a party; or (iii) result in a violation of any law, rule, regulation, order, judgment or decree
applicable to such Loan Party or by which any property or asset of such Loan Party is bound or affected; and 
 (f) that such Loan Party is
in compliance in all respects with each of the Transaction Documents to which such Loan Party is a party and that no Event of Default presently exists or would arise (whether with the giving of notice or the passage of time or both) from the Loan
Parties entering into this Amendment and/or the Other Amendment Documents or, after giving effect to the consent set forth in Section 1 above, from the consummation of the Restructuring. 
  

 6 

 7. Further Assurances; Mortgages. Each Loan Party covenants and agrees that it will at any
time and from time to time do, execute, acknowledge and deliver, or will cause to be done, executed, acknowledged and delivered, all such further acts, documents and instruments as reasonably may be required by the Agent in order to effectuate fully
the intent of this Amendment. Without limiting the generality of the foregoing, each Loan Party that is the grantor (or successor-in-interest to the grantor) of a Mortgage of record in the States of Texas, Wyoming and/or Montana made by such Loan
Party in favor of the Agent, for the benefit of the Buyers, shall, as soon as reasonably practicable (and in no event later than ten (10) Business Days) after the date hereof, deliver written notice to the applicable governmental agencies in
the States of Texas, Wyoming and Montana, of the change in the legal name of such Loan Party pursuant to the Restructuring, copies of which notices shall be delivered to Agent and each of the Buyers. 
 8. Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable. 
 9. References. From and after the Omnibus Amendment Effective Date, any reference to the “Purchase Agreement” or the “Transaction Documents” contained in any document, instrument or agreement executed in
connection with the “Purchase Agreement” or the “Transaction Documents” shall be deemed to be a reference to the “Purchase Agreement” or the “Transaction Documents”, as the case may be, as modified by this
Amendment. 
 10. Counterparts; Facsimile Signatures. This Amendment may be executed in two or more identical counterparts, all
of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party; provided that a facsimile signature shall be considered due execution and
shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. 
 11. Ratification. The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions of the Purchase Agreement and the other Transaction Documents and shall not be deemed to
be a consent to the modification or waiver of any other term or condition of any of the Transaction Documents. Except as expressly modified and superseded by this Amendment, the terms and provisions of each of the Transaction Documents are ratified
and confirmed and shall continue in full force and effect. 
 12. Reaffirmation. Each of the Loan Parties as debtor, grantor,
pledgor, guarantor, assignor, or in other any other similar capacity in which such Loan Party grants liens or security interests in its property or otherwise acts as accommodation party or guarantor, as the case may be, hereby (i) ratifies and
reaffirms all of its payment and performance obligations, contingent or otherwise, under each of the Transaction Documents to which it is a party (after giving effect hereto) and (ii) to the extent such Loan Party granted liens on or security
interests in any of its property pursuant to any such Transaction Document as security for or otherwise guaranteed the Obligations under or with respect to the Transaction Documents, ratifies and reaffirms such guarantee and grant of security
interests and liens and confirms and agrees that such security interests and liens hereafter secure all of the Obligations as amended hereby. Each of the Loan Parties hereby consents to this Amendment and acknowledges that each of the Transaction
Documents remains in full force and effect and is hereby ratified and reaffirmed. The execution of this Amendment shall not operate as a waiver of any right, power or remedy of the Agent or Buyers, constitute a waiver of any provision of any of the
Transaction Documents or serve to effect a novation of the Liabilities (as defined in the Security Agreement). 
 13. Governing Law;
Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Amendment shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting 

  

 7 

 
in the City of New York, borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address for such notices to it under this Amendment and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law. The Parties acknowledge that each of the Buyers has executed this Amendment in the State of New York. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A
JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 
 14. No Strict Construction. The language used in this Amendment will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied
against any party. 
 15. Survival. The representations and warranties of the Loan Parties contained in Section 5
of this Amendment shall survive the Omnibus Amendment Effective Date. 
 [rest of page intentionally left blank; signature pages follow]

  

 8 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed under seal
and delivered by their respective duly authorized officers on the date first written above. 
  

			
	LOAN PARTIES:
	
	 GASTAR EXPLORATION LTD.,
 an
Alberta corporation

		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

			
	 GASTAR EXPLORATION USA, INC.,
 a
Michigan corporation

		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

			
	 GASTAR EXPLORATION NEW SOUTH
 WALES, INC., a Michigan corporation

		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

			
	 GASTAR EXPLORATION VICTORIA, INC.,
 a Michigan corporation

		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

			
	 GASTAR EXPLORATION TEXAS, INC.,
 a
Michigan corporation

		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

			
	 GASTAR EXPLORATION TEXAS LP,
 a
Delaware limited partnership

		
	By:	 	 GASTER EXPLORATION TEXAS LLC,
 a Delaware
limited liability company, its
 General Partner

		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 9 

			
	 GASTAR EXPLORATION TEXAS LLC, a
 Delaware limited liability company

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	1212117 ALBERTA LTD., an Alberta corporation
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 10 

					
	AGENT:
	
	 PROMETHEAN ASSET MANAGEMENT, L.L.C.,
 in its capacity as collateral agent for the Buyers

		
	By:	 	  

	Name:	 	Robert J. Brantman
	Title:	 	Partner and Authorized Signatory
	
	BUYERS:
	
	HFTP INVESTMENT L.L.C., as a Buyer
		
	By:	 	 Promethean Asset Management L.L.C., its
 Investment Manager

		
	By:	 	  

	Name:	 	Robert J. Brantman
	Title:	 	Partner and Authorized Signatory
	
	GAIA OFFSHORE MASTER FUND, LTD., as a Buyer
		 	
		
	By:	 	Promethean Asset Management L.L.C.
	Its:	 	Investment Manager
		
	By:	 	  

	Name:	 	Robert J. Brantman
	Title:	 	Partner and Authorized Signatory
	
	LEONARDO, L.P., as a Buyer
		
	By:	 	Leonardo Capital Management, Inc.
	Its:	 	General Partner
			
		 	By:	 	Angelo, Gordon & Co., L.P.
		 	Its:	 	Director
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

	
	 WAYLAND RECOVERY FUND, LLC, as a Buyer

			
		 	 By:
	 	 Wayzata Investment Partners LLC

		 	 Its:
	 	 Manager

			
		 	 By:
	 	  

		 	 Name:
	 	  

		 	 Title:
	 	  

  

 11 

					
	
	 WAYZATA RECOVERY FUND, LLC, as a Buyer

			
		 	 By:
	 	Wayzata Investment Partners LLC
		 	 Its:
	 	 Manager

			
		 	 By:
	 	  

		 	 Name:
	 	  

		 	 Title:
	 	  

	
	CYRUS OPPORTUNITIES FUND, L.P., as a Buyer
		
	 By:
	 	 Cyrus Capital Partners, L.P., as Investment
 Manager

		
	 By:
	 	 Cyrus Capital Partners GP, LLC, General
 Partner

		
	 By:
	 	  

	Name:	 	  

	 Title:
	 	  

	
	CYRUS OPPORTUNITIES FUND II, L.P., as a Buyer
		
	 By:
	 	 Cyrus Capital Partners, L.P., as Investment
 Manager

		
	 By:
	 	 Cyrus Capital Partners GP, LLC, General
 Partner

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 12

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