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Exhibit 10.9    
    

 
 

EMPLOYMENT AGREEMENT    
    

        This Employment Agreement (this "Agreement") is entered into to be effective October 1, 2005, and is between Stroud Energy, Inc., a Delaware
corporation ("Stroud Energy"), and Patrick J. Noyes (the "Executive"). 

1.    Definitions.    As used in this Agreement, the following terms have the following meanings: 

        (a)   "Affiliate"
means, with respect to any entity, any other corporation, organization, association, partnership, sole proprietorship or other type of entity, whether
incorporated or unincorporated, directly or indirectly controlling or controlled by or under direct or indirect common control with such entity. 

        (b)   "Board"
means the Board of Directors of Stroud Energy. 

        (c)   "Cause"
means (i) any material violation by the Executive of this Agreement, (ii) any act or omission by the Executive involving fraud, willful misconduct
or gross negligence on the part of the Executive that is materially injurious to Stroud Energy or (iii) the Executive's conviction of, or entry of a plea agreement or consent decree or similar
arrangement with respect to any felony involving fraud, moral turpitude or any violation of federal or state securities law. 

        (d)   "Change
of Control" means any of the following events: 

        (i)    the
acquisition by any "person" (including a "group" (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), but excluding Stroud Energy or an existing
stockholder of Stroud Energy who, upon closing of Stroud Energy's private placement of common stock described in that certain
offering memorandum dated September 15, 2005 (the "Private Placement"), holds 5% or more of the Common Stock of Stroud Energy) of "beneficial ownership" (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Stroud Energy representing more than 50% of the combined voting power of Stroud Energy's then
outstanding securities entitled to vote generally in the election of directors; or 

        (ii)   the
consummation of a reorganization, merger, consolidation or other form of business transaction or series of business transactions, if (A) in each case, with
respect to which persons who were stockholders of Stroud Energy immediately prior to such reorganization, merger or consolidation or other transaction do not, immediately thereafter, own more than 50%
of the combined voting power entitled to vote generally in the election of directors of the reorganized, merged or consolidated company's then outstanding voting securities and (B) Executive
does not remain the Chief Executive Officer of the reorganized, merged, or consolidated company; or 

        (iii)  the
sale, lease or disposition (in one or a series of related transactions) by Stroud Energy of all or substantially all of Stroud Energy's assets (including those of
its subsidiaries) to any person or its Affiliates, other than Stroud Energy or its Affiliates; or 

        (iv)  the
approval by the Board or the stockholders of Stroud Energy of a complete or substantially complete liquidation or dissolution of Stroud Energy; or 

        (v)   any
event similar to the foregoing that the Compensation Committee of the Board determines in its absolute discretion would, if consummated, materially alter the
structure or business of Stroud Energy. 

Notwithstanding
the foregoing, (i) a Change of Control shall not include any acquisition, merger, or reorganization by Stroud Energy in which the stockholders of Stroud Energy immediately prior
to such acquisition, merger, or reorganization will have substantially the same proportionate ownership of common stock of the surviving corporation immediately thereafter or which would be considered
a Change of Control only due to the acquisition of Common Stock by any employee benefit plan (or related trust) sponsored or maintained by Stroud Energy or any parent or subsidiary of Stroud Energy, 

 

and
(ii) a Change of Control shall not include the transactions contemplated by that certain Combination Agreement between Stroud Energy, Stroud Energy Management, Ltd., Stroud
Energy, Ltd., Stroud Oil Properties, Inc. and the other parties thereto dated August 1, 2005, the Private Placement, or the initial public offering of the Common Stock. 

        (e)   "Code"
means the Internal Revenue Code of 1986, as amended. 

        (f)    "Employment
Termination Date" means the effective date of termination of the Executive's employment as established under Paragraph 5(g). 

        (g)   "Good
Reason" means any of the following actions if taken without the Executive's prior written consent: (i) any material failure by Stroud Energy to comply with
its obligations under Paragraph 4 (Compensation and Related Matters); (ii) a Change of Control; (iii) any demotion of the Executive as evidenced by a material reduction in the
Executive's responsibilities, duties, compensation, or benefits; (iv) the loss of the Executive's positions as, or titles of, Chairman of the Board or Chief Executive Officer of Stroud Energy
or its successor; or (v) any permanent relocation of the Executive's place of business to a location 50 miles or more from the current location. 

        (h)   "Inability
to Perform" means and shall be deemed to have occurred if the Executive has been determined under Stroud Energy's long-term disability plan to be
eligible for long-term disability benefits. In the absence of the Executive's participation in such plan, application for benefits under, or existence of such a plan, "Inability to
Perform" means a finding by the Board that the Executive is, despite any reasonable accommodation required by law, unable to perform the essential functions of his position because of an illness or
injury for (i) 60% or more of the normal working days during six consecutive calendar months or (ii) 40% or more of the normal working days during twelve consecutive calendar months. 

2.    Employment.    Stroud Energy agrees to continue to employ the Executive (who previously was employed at will by an Affiliate
of Stroud Energy), and the Executive agrees to continue to be employed, in the position and with the duties and responsibilities set forth in Paragraph 3, and upon the other terms and
conditions set out in this Agreement. 

3.    Position and Duties. 

        (a)   During
his employment by Stroud Energy, the Executive shall serve as the Chief Executive Officer and Chairman of the Board of Stroud Energy. In such capacity, the
Executive, subject to the ultimate control and direction of the Board, shall have and exercise direct charge of and general supervision over the business and affairs of Stroud Energy. In addition, the
Executive shall have such other duties, functions, responsibilities, and authority as are from time to time delegated to the Executive by the Board; provided, however, that such duties, functions,
responsibilities, and authority are reasonable and customary for a person serving in the same or similar capacity of an enterprise comparable to Stroud Energy. The Executive shall report and be
accountable to the Board. Furthermore, during Executive's employment, the Board shall request the Nominating Committee of the Board, subject to and in a manner consistent with the Stroud Energy
Nominating Committee Charter, to recommend the Executive as a nominee for election to the Board of Stroud Energy at each annual meeting of shareholders of Stroud Energy held during years in which
Executive's then-current term on the Board will expire. 

        (b)   During
his employment by Stroud Energy, the Executive shall devote his full time, skill, and attention and his best efforts to the business and affairs of Stroud Energy
to the extent necessary to discharge fully, faithfully, and efficiently the duties and responsibilities delegated and assigned to the Executive in or pursuant to this Agreement, except for usual,
ordinary, and customary periods of vacation and absence due to illness or other disability. 

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        (c)   In
connection with the Executive's employment by Stroud Energy under this Agreement, the Executive shall be based at the principal executive offices of Stroud Energy in
Fort Worth, Texas, or at any other place where the principal executive offices of Stroud Energy may be located during Executive's employment. The Executive also will engage in such travel as the
performance of the Executive's duties in the business of Stroud Energy may require. 

        (d)   All
services that the Executive may render to Stroud Energy or any of its Affiliates in any capacity during his employment by Stroud Energy shall be deemed to be
services required by this Agreement and the consideration for such services is that provided for in this Agreement. 

4.    Compensation and Related Matters. 

        (a)    Offering Bonus.    Stroud Energy shall pay the Executive, within seven days of the effectiveness of the
registration statement Stroud Energy is required to file with respect to resales of its common stock sold in the Private Placement, a lump sum bonus in the amount of $500,000.00 (the "Offering
Bonus"). If Stroud Energy does not file with the Securities and Exchange Commission a registration statement registering the resale of the shares sold in the Private Placement within 90 days
after the closing date of the Private Placement, then the Executive shall forfeit 1.0% of the Offering Bonus for each Business
Day (as defined in the Registration Rights Agreement entered into in connection with the Private Placement) the registration default continues. 

        (b)    Base Salary.    Stroud Energy shall pay to the Executive for his services under this Agreement an annual base
salary ("Base Salary"). The Base Salary on the effective date of this Agreement shall be at least $300,000.00. The Base Salary is subject to annual adjustment at the discretion of the Board within
120 days after the beginning of each calendar year to be effective as of February 1 of such year, but in no event shall Stroud Energy pay the Executive a Base Salary less than that set
forth above without the written consent of Executive. The Base Salary shall be payable in installments in accordance with the general payroll practices of Stroud Energy, or as otherwise mutually
agreed upon. 

        (c)    Annual Bonus.    During his employment by Stroud Energy, the Executive will be eligible for an annual incentive
bonus (the "Annual Bonus") with respect to each calendar year to be paid in cash within 90 days after the end of each such year, the amount of which shall be determined each year by the
Compensation Committee of the Board based on an objective measure (including but not limited to discretionary cash flow, increase in net asset value, proved reserve additions, production, and cost
management) and a subjective measure. The objective portion will be based on a price-neutral performance measure and the subjective portion will give the Compensation Committee the discretion to
adjust the size of the Annual Bonus based on its perception of the Executive's performance. The Annual Bonus for any one year may not exceed $500,000.00 and will be paid as to 2005 with respect to the
Executive's performance for the full calendar year of 2005, and without consideration of the Offering Bonus paid pursuant to Paragraph 4(a). 

        (d)    Long-Term Incentives.    During his employment by Stroud Energy, the Executive will participate in
Stroud Energy's long-term incentive plan(s) and restricted stock plan(s) applicable to the Executive's position, in accordance with the terms of such plan(s). Upon a Change of Control, the
death of the Executive or the Executive's Inability to Perform, (i) any awards (other than restricted stock awards) granted under such plans shall be fully vested, all restrictions and
limitations shall lapse and all performance criteria and other conditions related to such awards shall be deemed to be achieved or fulfilled to the maximum extent possible, and such awards shall be
cancelled in exchange for a cash payment equal to the value of the awards, and (ii) any awards of restricted stock shall be fully vested, all restrictions and limitations shall lapse and all
performance criteria and other conditions related to such awards shall be deemed to be achieved or fulfilled to the maximum extent possible. Upon termination of the Executive by Stroud Energy without
Cause, the award of 314,668 shares of restricted stock granted to Executive in connection with Stroud Energy's 144A offering shall be fully 

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vested,
all restrictions and limitations shall lapse and all performance criteria and other conditions related to such award shall be deemed to be achieved or fulfilled to the maximum extent possible. 

        (e)    Employee Benefits.    During his employment by Stroud Energy, the Executive shall be entitled to participate in
all employee benefit plans, programs, and arrangements that are generally made available
by Stroud Energy to its senior executives, including without limitation Stroud Energy's life insurance, disability, and health plans. Stroud Energy will maintain a long-term disability
policy for the Executive that provides a salary replacement benefit equal to at least sixty percent (60%) of the Executive's Base Salary at the time of the disability. The Executive agrees to
cooperate and participate in any medical or physical examinations as may be required by any insurance company in connection with the applications for such life and/or disability insurance policies. 

        (f)    Expenses.    The Executive shall be entitled to receive reimbursement for all reasonable expenses incurred by
the Executive in performing his duties and responsibilities under this Agreement, consistent with Stroud Energy's policies or practices for reimbursement of expenses incurred by other Stroud Energy
senior executives. 

        (g)    Vacations.    During the Executive's employment by Stroud Energy, the Executive shall be eligible for vacation,
sick pay, and other paid and unpaid time off in accordance with the policies and practices of Stroud Energy. The Executive agrees to use his vacation and other paid time off at such times that are
(i) consistent with the proper performance of his duties and responsibilities and (ii) mutually convenient for Stroud Energy and the Executive. 

5.    Termination of Employment. 

        (a)    Death.    The Executive's employment and this Agreement shall terminate automatically upon his death; provided,
however, that this subsection 5(a) shall not release or otherwise modify Stroud Energy's obligations following Executive's death as provided for elsewhere in this Agreement. 

        (b)    Inability to Perform.    Stroud Energy may terminate the Executive's employment and this Agreement for
Inability to Perform; provided, however, that this subsection 5(b) shall not release or otherwise modify Stroud Energy's obligations following Executive's Inability to Perform as provided for
elsewhere in this Agreement. 

        (c)    Termination by Stroud Energy for Cause.    Stroud Energy may terminate the Executive's employment and this
Agreement for Cause by providing the Executive with a Notice of Termination as set out in Paragraph 5(f). 

        (d)    Termination by the Executive for Good Reason.    The Executive may terminate his employment and this Agreement
for Good Reason. To exercise his right to terminate for Good Reason, the Executive must provide written notice to Stroud Energy of his belief that Good Reason exists, and that notice shall describe
the circumstance(s) believed to constitute Good Reason. If such circumstance(s) may reasonably be remedied, Stroud Energy shall have 30 days to effect a remedy. If not remedied within that
30-day period, the Executive may submit a Notice of Termination; provided, however, that the Notice of Termination invoking the Executive's right to terminate his employment for
Good Reason must be given no later than 60 days after the date Good Reason first arose; otherwise, the Executive is deemed to have accepted the circumstance(s) that may have given rise to the
existence of Good Reason. 

        (e)    Termination by Either Party without Cause or without Good Reason.    Stroud Energy may terminate the
Executive's employment and this Agreement without Cause at any time. Executive may terminate his employment under this Agreement without Good Reason upon at least three months' prior written notice to
Stroud Energy. 

        (f)    Notice of Termination.    Any termination of the Executive's employment by Stroud Energy or by the Executive
(other than a termination pursuant to Paragraph 5(a)) shall be communicated by a 

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Notice
of Termination. A "Notice of Termination" is a written notice that must (i) indicate the specific termination provision in this Agreement relied upon; (ii) in the case of a
termination for Inability to Perform, Cause, or Good Reason, set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under
the provision invoked; and (iii) if the termination is by the Executive under Paragraph 5(e), or by Stroud Energy for any reason, specify the Employment Termination Date. The failure by
Stroud Energy or the Executive to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Cause or Good Reason shall not waive any right of Stroud Energy or
the Executive or preclude either of them from asserting such fact or circumstance in enforcing or defending their rights. 

        (g)    Employment Termination Date.    The Employment Termination Date, whether occurring before or after a Change of
Control, shall be as follows: (i) if the Executive's employment is terminated by his death, the date of his death; (ii) if the Executive's employment is terminated by Stroud Energy
because of his Inability to Perform or for Cause, the date specified in the Notice of Termination, which date shall be no earlier than the date such notice is given; (iii) if the Executive's
employment is terminated by the Executive for Good Reason, the date on which the Notice of Termination is given; (iv) if the termination is by Stroud Energy without Cause under
Paragraph 5(e), the date specified in the Notice of Termination; or (v) if the termination is by Executive without Good Reason under Paragraph 5(e), the date specified in the
Notice of Termination, which date shall be no earlier than three months after the date such notice is given. 

        (h)    Deemed Resignation.    In the event of termination of the Executive's employment, the Executive agrees that if
at such time he is a member of the Board or is an officer of Stroud Energy or a director, officer, or manager of any of its Affiliates or if he serves as a fiduciary of Stroud Energy or an Affiliate's
employee benefit plans, he shall be deemed to have resigned from such position(s) effective on the Employment Termination Date, unless the Board notifies the Executive in writing prior to the
Employment Termination Date of the Board's desire that the Executive remain a member of the Board, in which case the Executive shall not be deemed to have resigned his position as a member of the
Board merely by virtue of the termination of his employment. 

        (i)    Good Faith.    In making determinations regarding the existence of appropriate grounds for the termination of
the employment relationship and the proper compensation in the event of such a termination, both the Executive and Stroud Energy shall exercise good faith toward one another. 

6.    Compensation Upon Termination of Employment. 

        (a)    Payments Upon Termination for Any Reason.    If Executive's employment is terminated by the Executive or Stroud
Energy for any reason, Stroud Energy shall pay to the Executive (or in the case of termination of employment upon the Executive's death, to such person as the Executive shall designate in a written
notice to Stroud Energy or, if no such person is designated, to his estate) (i) any unpaid portion of the Executive's Base Salary through the Employment Termination Date (the "Compensation
Payment"), any earned but unused vacation (the "Vacation Payment"), and any unreimbursed business expenses (the "Unreimbursed Business Expense Payment"). The Executive shall not be entitled to any
payments from Stroud Energy other than the Compensation Payment, the Vacation Payment and the Unreimbursed Business Expense Payment if employment is terminated by Stroud Energy for Cause or by the
Executive without Good Reason. 

        (b)    Severance Payment.    In addition to the payments set forth in Paragraph 6(a), if Executive's employment
is terminated by reason of the Executive's death or Inability to Perform, by Stroud Energy without Cause or by Executive with Good Reason, Stroud Energy shall pay to the Executive (or in the case of
termination of employment upon the Executive's death, to such person as the Executive shall designate in a written notice to Stroud Energy or, if no such person is designated, to his estate) a
severance payment equal to two years' Base Salary in a lump sum reduced for each complete month after the effective date of this Agreement on a pro rata basis such that on the first anniversary of the 

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effective
date of this Agreement, and thereafter, Executive will be entitled to one year's Base Salary. The payment required by this paragraph is the "Severance Payment." 

        (c)    Health Insurance.    If the Executive's employment with Stroud Energy or any Affiliate of Stroud Energy ends on
account of (i) a termination by Stroud Energy for any reason other than for death or Cause, or (ii) a termination by the Executive for Good Reason, the Executive will receive, in
addition to any other payments due under this Agreement, the following benefit: if, at the time his employment ends, the Executive participates in one or more health plans offered by Stroud Energy and
the Executive is eligible for and elects to receive continued coverage under such plans in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA") or any successor law,
Stroud Energy will reimburse the Executive during the 18-month period following the Employment Termination Date or, if shorter, the period of such actual COBRA continuation coverage, the
difference between the total amount of the monthly COBRA premiums actually paid by the Executive for such continued health plan benefits and the total monthly amount of the premiums charged to active
senior executives of Stroud Energy for the same health insurance coverage. Provided, however, that Stroud Energy's reimbursement obligation under this Paragraph 6(c) shall terminate upon
the earlier of (i) the expiration of the time period(s) described above, (ii) the date the Executive becomes eligible for health insurance coverage under a subsequent employer's plan
without being subject to any preexisting-condition exclusion under that plan, which occurrence the Executive shall promptly report to Stroud Energy, or (iii) the date of death of the Executive. 

        (d)    Exclusive Compensation and Benefits.    The compensation and benefits described in this Paragraph 6,
along with the associated terms for payment, constitute all of Stroud Energy's obligations to the Executive with respect to the ending of the Executive's employment with Stroud Energy and/or its
Affiliates. However, nothing in this Agreement is intended to limit any earned, vested benefits (other than any entitlement to severance or separation pay, if any) that the Executive may have under
the applicable provisions of any benefit plan of Stroud Energy in which the Executive is participating at the time of the termination of employment. 

        (e)    Timing of Payment.    The Compensation Payment, the Vacation Payment and the Unreimbursed Business Expense
Payment will be paid at the time and in the manner required by applicable law. The Severance Payment and the reimbursement related to health insurance provided in Paragraph 6(c), if any, will
be paid (or commence being paid) on the date that is six months after the date of the Executive's separation from service (or, if earlier, the date of death of the Executive) as provided in
Section 409A(a)(2) of the Code or such earlier date as may be permitted under Section 409A of the Code. 

        (f)    Compliance with Code Section 409A.    Any provision of this Agreement to the contrary notwithstanding,
all compensation payable pursuant to this Agreement that is determined by Stroud Energy in its reasonable judgment to be subject to Section 409A of the Code shall be paid in a manner that
Stroud Energy in its reasonable judgment determines meets the requirements of Section 409A of the Code and any related rules, regulations or other guidance, even if meeting such requirements
would result in a delay in the time of payment of such compensation. 

7.    Expenses of Enforcement.    In the event that the Executive seeks a judicial adjudication of his rights under, or to recover
damages for breach of, this Agreement, the Executive shall be entitled to recover from Stroud Energy, and shall be indemnified by Stroud Energy against, any and all expenses actually and reasonably
incurred by him in such judicial adjudication regardless of whether Executive ultimately is successful in such adjudication. 

8.    No Obligation to Pay.    With regard to any payment due to the Executive under this Agreement, it shall not be a breach of any
provision of this Agreement for Stroud Energy to fail to make such payment to the Executive if (i) Stroud Energy is legally prohibited from making the payment; 

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(ii) Stroud
Energy would be legally obligated to recover the payment if it was made; or (iii) the Executive would be legally obligated to repay the payment if it was made. 

9.    Withholding Taxes.    Stroud Energy shall withhold from any payments to be made to the Executive pursuant to this Agreement
such amounts (including Social Security and Medicare contributions and federal income taxes) as shall be required by federal, state, and local withholding tax laws. 

10.    Notices.    All notices, requests, demands, and other communications required or permitted to be given or made by either
party shall be in writing and shall be deemed to have been duly given or made (a) when delivered personally, or (b) when deposited in the United States mail, first class registered or
certified mail, postage prepaid, return receipt requested, to the party for which intended at the following addresses (or at such other addresses as shall be specified by the parties by like notice,
except that notices of change of address shall be effective only upon receipt): 

        (i)    If
to Stroud Energy, at: 

Stroud
Energy, Inc.

Attn: Chairman of the Compensation Committee

801 Cherry Street Suite 3800

Fort Worth, Texas 76102 

        (ii)   If
to the Executive, at the Executive's then-current home address on file with Stroud Energy. 

11.    Mitigation.    The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by
seeking other employment or otherwise, nor shall the amount of any payment provided for in this Agreement be reduced by any compensation earned by the Executive as the result of employment by another
employer after the date of termination of the Executive's employment with Stroud Energy, or otherwise. 

12.    Binding Effect; No Assignment by the Executive; No Third Party Benefit.    This Agreement shall be binding upon and inure to
the benefit of the parties and their respective heirs, legal representatives, successors, and assigns; provided, however, that the Executive shall not assign or otherwise transfer this Agreement or
any of his rights or obligations under this Agreement. Stroud Energy is authorized to assign or otherwise transfer this Agreement or any of its rights or obligations under this Agreement to an
Affiliate of Stroud Energy. The Executive shall not have any right to pledge, hypothecate, anticipate, or in any way create a lien upon any payments or other benefits provided under this Agreement;
and no benefits payable under this Agreement shall be assignable in anticipation of payment either by voluntary or involuntary acts, or by operation of law, except by will or pursuant to the laws of
descent and distribution. Nothing in this Agreement, express or implied, is intended to or shall confer upon any person other than the parties, and their respective heirs, legal representatives,
successors, and permitted
assigns, any rights, benefits, or remedies of any nature whatsoever under or by reason of this Agreement. 

13.    Assumption by Successor.    Stroud Energy shall ensure that any successor or assignee (whether direct or indirect, by
purchase, merger, consolidation, or otherwise) to all or substantially all the business and/or assets of Stroud Energy, either by operation of law or written agreement, assumes the obligations of this
Agreement (the "Assumption Obligation"). If Stroud Energy fails to fulfill the Assumption Obligation, such failure shall be considered Good Reason; provided, however, that the compensation to which
the Executive would be entitled to upon a termination for Good Reason shall be the sole remedy of the Executive for any failure by Stroud Energy to fulfill the Assumption Obligation. As used in this
Agreement, "Stroud Energy" shall include any successor or assignee (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all the business and/or assets
of Stroud Energy that executes and delivers the agreement provided for in this Paragraph 13 or that otherwise becomes obligated under this Agreement by operation of law. 

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14.    Governing Law; Venue.    This Agreement and the employment of the Executive shall be governed by the laws of the State of
Texas except for its laws with respect to conflict of laws. The exclusive forum for any lawsuit arising from or related to the Executive's employment or this Agreement shall be a state or federal
court in Tarrant County, Texas. This provision does not prevent Stroud Energy from removing to an appropriate federal court any action brought in state court. THE EXECUTIVE
HEREBY CONSENTS TO, AND WAIVES ANY OBJECTIONS TO, REMOVAL TO FEDERAL COURT BY STROUD ENERGY OF ANY ACTION BROUGHT AGAINST IT BY THE EXECUTIVE.

15.    JURY TRIAL WAIVER.    IN THE EVENT THAT ANY DISPUTE ARISING FROM OR RELATED TO THIS AGREEMENT OR THE EXECUTIVE'S EMPLOYMENT
WITH STROUD ENERGY RESULTS IN A LAWSUIT, BOTH STROUD ENERGY AND THE EXECUTIVE MUTUALLY WAIVE ANY RIGHT THEY MAY OTHERWISE HAVE FOR A JURY TO DECIDE THE ISSUES IN THE LAWSUIT, REGARDLESS OF THE PARTY
OR PARTIES ASSERTING CLAIMS IN THE LAWSUIT OR THE NATURE OF SUCH CLAIMS. STROUD ENERGY AND THE EXECUTIVE IRREVOCABLY AGREE THAT ALL ISSUES IN SUCH A LAWSUIT SHALL BE DECIDED BY A JUDGE RATHER THAN A
JURY.

16.    Entire Agreement.    This Agreement contains the entire agreement between the parties concerning the subject matter hereof
and supersedes all prior agreements and understandings, written and oral, between the parties with respect to the subject matter of this Agreement. 

17.    Modification; Waiver.    No person, other than pursuant to a resolution duly adopted by the members of the Board, shall have
authority on behalf of Stroud Energy to agree to modify, amend, or waive any provision of this Agreement. Further, this Agreement may not be changed orally, but only by a written
agreement signed by the party against whom any waiver, change, amendment, modification or discharge is sought to be enforced. The parties hereto acknowledge and agree that no breach by the other party
of this Agreement or failure to enforce or insist on its rights under this Agreement shall constitute a waiver or abandonment of any such rights or defense to enforcement of such rights. 

18.    Construction.    This Agreement is to be construed as a whole, according to its fair meaning, and not strictly for or against
any of the parties. 

19.    Severability.    If any provision of this Agreement shall be determined by a court to be invalid or unenforceable, the
remaining provisions of this Agreement shall not be affected thereby, shall remain in full force and effect, and shall be enforceable to the fullest extent permitted by applicable law. 

20.    Counterparts.    This Agreement may be executed by the parties in any number of counterparts, each of which shall be deemed
an original, but all of which shall constitute one and the same agreement. 

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        IN
WITNESS WHEREOF, Stroud Energy has caused this Agreement to be executed on its behalf by its duly authorized officer, and the Executive has executed this Agreement, effective as of
the date first set forth above. 

	STROUD ENERGY, INC.	 	PATRICK J. NOYES
	

By:	

/s/  STEPHEN M. CLARK      
	
 	

/s/  PATRICK J. NOYES      

	

Printed Name:	

Stephen M. Clark
	
 	

 
	

Title:	

Vice President & Chief Financial Officer
	
 	

 

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Exhibit 10.9

EMPLOYMENT AGREEMENTQuickLinks
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Exhibit 4.1    
    

 
 

SECOND AMENDED AND RESTATED
  REGISTRATION RIGHTS AGREEMENT    
    

        This Second Amended and Restated Registration Rights Agreement (this "Agreement") is made and entered into as of September 21, 2005, by and among STROUD
ENERGY, INC., a Delaware corporation (the "Company"), and the parties listed on the signature pages hereto (each, an "Owner" and collectively, the "Owners"); 

RECITALS 

        The
Company, the Owners and certain other parties are parties to the Combination Agreement, dated as of August 1, 2005 (the "Combination Agreement"), pursuant to which the Owners
have agreed to exchange their ownership interests in various entities for common stock of the Company (the "Combination"). 

        In
connection with the Combination, the Owners will receive shares of common stock of the Company. 

        In
connection with the Combination Agreement, the parties hereto entered into an Amended and Restated Registration Rights Agreement, dated as of September 19, 2005 (the "Original
Agreement"), which set forth the terms on which the Company agreed to register the common stock received by the Owners in the Combination. 

        The
parties desire to amend and restate the Original Agreement to clarify certain issues. 

        Capitalized
terms not defined herein have the meaning given to them in the Combination Agreement. 

        NOW,
THEREFORE, in consideration of the premises and the mutual terms, covenants and conditions herein contained, and intending to be legally bound hereby, the parties hereto hereby
agree that this Agreement supersedes and replaces the Original Agreement in its entirety, and further agree as follows: 

        The
Company and the Owners covenant and agree as follows: 

        1.     Definitions. For purposes of this Agreement: 

        (a)   The
term "Best Efforts" means a Person's reasonable best efforts in accordance with reasonable commercial practice and without the incurrence of unreasonable expense. 

        (b)   The
term "Commission" means the Securities and Exchange Commission. 

        (c)   The
term "Expenses" means all expenses incident to the Company's performance of or compliance with Section 2.1, including, without limitation, all registration,
filing and National Association of Securities Dealers fees, all fees and expenses of complying with securities or blue sky laws, all word processing, duplicating and printing expenses, messenger and
delivery expenses, the fees and disbursements of counsel for the Company and of its independent public accountants, including the expenses of any special audits or "cold comfort" letters required by
or incident to such performance and compliance, premiums and other costs of policies of insurance against liabilities arising out of the public offering of the Registrable Securities being registered
and any fees and disbursements of underwriters customarily paid by issuers or sellers of securities. 

        (d)   The
term "Person" means an individual, partnership, corporation, limited liability company, trust or unincorporated organization, or government or agency or political
subdivision thereof. 

 

        (e)   The
terms "register," "registered" and "registration" refer to a registration of securities effected by preparing and filing a registration statement or similar document
in compliance with the Securities Act (as defined below), and the declaration or ordering of effectiveness of such registration statement or document. 

        (f)    The
term "Registrable Securities" means the shares of common stock of the Company received by the Owners pursuant to the Combination Agreement. As to any Registrable
Security, once issued such security shall cease to be a Registrable Security (i) when such Registrable Security shall have been disposed in the private offering which the Company has engaged
Raymond James & Associates, Inc. to conduct (the "Private Offering") or shall have been effectively registered under the Securities Act and disposed of in a public market transaction
pursuant to a registration statement, (ii) when such Registrable Security shall have been sold pursuant to Rule 144 (or any successor provision) under the Securities Act,
(iii) when such Registrable Security shall have been otherwise transferred and a new certificate for such Registrable Security not bearing a legend restricting further transfer shall have been
delivered by the Company, (iv) with respect to a particular Owner, at any time when all of such Owner's remaining Registrable Securities can be sold in a single transaction in compliance with
Rule 144 under the Securities Act, (v) on the second anniversary of the original issuance date of such Registrable Security, provided that the Owner of such Registrable Security is not
an affiliate of the Company as of such date, and has not been an affiliate of the Company for a period of three months preceding such date, or (vi) when such Registrable Security shall have
ceased to be outstanding. 

        (g)   The
term "Requisite Threshold" means any owner or owners of an aggregate of at least 15% of all Registrable Securities outstanding immediately following the closing
pursuant to the Combination Agreement and prior to the closing of the Private Offering. 

        (h)   The
term "Securities Act" means the Securities Act of 1933, as amended, and the term "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        2.     Registration. 

        2.1   Registration on Request. 

        (a)   From
time to time after six (6) months from the date of effectiveness of the registration statement filed to register the shares of common stock of the Company
purchased in the Company's Private Offering, upon the written request of the Requisite Threshold that the Company effect the registration under the Securities Act of the Registrable Securities held by
the requesting party or parties that such party or parties desire to register and specifying the intended method of disposition thereof and whether or not such requested registration is to be an
underwritten offering, the parties hereto agree as follows: 

        (i)    the
Company must effect such a registration only if such Requisite Threshold requests registration for collectively at least 300,000 Registrable Shares; 

        (ii)   the
Company will promptly give written notice of such requested registration to all other owners of Registrable Securities, if any; and 

2

 

        (iii)  promptly
after the performance of any obligations imposed under clause (i) of this Section 2.1(a), and subject to the limitations set forth in
Section 2.1(c) and Section 3, the Company will use its Best Efforts to effect the registration under the Securities Act of the Registrable Securities that the Company has been requested
to register by the Requisite Threshold and the other owners of Registrable Securities by written request given to the Company within 30 days after the receipt of such written notice by the
Company and to qualify the securities subject to such registration under the securities laws of such states as the Requisite Threshold shall reasonably request, all to the extent required to permit
the disposition (in accordance with the intended methods thereof as specified in such written notice) of the Registrable Securities to be registered and cause such registration to remain effective for
a period of not less than 180 days following its effective date or such shorter period as shall terminate when all Registrable Securities covered by such registration statement have been sold.
The Company shall not be required to qualify the securities subject to such registration in any jurisdiction where, as a result thereof, the Company would become subject to general service of process
or to taxation or to qualification to do business as a foreign corporation doing business in such jurisdiction solely as a result of such qualification. 

        (b)   Registration Statement Form. Subject to Section 2.1(c), registrations under this Section 2.1 shall be on
such appropriate registration form of the Commission as shall be reasonably selected by the Company and reasonably acceptable to the Requisite Threshold and as shall permit the disposition of such
Registrable Securities in accordance with the intended method or methods of disposition specified in the request for such registration. 

        (c)   Limitations
with respect to Requested Registrations. 

        (i)    Until
such time as the Company becomes eligible to use Form S-3 for a registration under the Securities Act of any of its securities, the Company
shall have no obligation to take or continue any action to effect a requested registration under this Section 2.1 after the Company has effected two registrations that are requested pursuant to
this Section 2.1. After such time as the Company becomes eligible to use Form S-3 for a registration under the Securities Act of any of its securities, the Company shall have
no obligation to take or continue any action to effect a requested registration under this Section 2.1 after the Company has effected five registrations that are requested pursuant to this
Section 2.1, less the number of registrations that were effected prior to such date. A registration requested pursuant to this Section 2.1 shall not be deemed to have been effected
(1) unless a registration statement with respect thereto has been declared effective, (2) if after a registration statement has become effective, such registration is terminated by any
stop order, injunction or other order or requirement of the Commission or other governmental agency or court, or (3) if the registration is in connection with an underwritten offering and if
the conditions to closing specified in the purchase agreement or underwriting agreement entered into in connection with such registration are not satisfied, other than as a result of the voluntary
termination of such offering by the Requisite Threshold. 

        (ii)   The
Company shall have no obligation to take or continue any action to effect more than one registration requested under this Section 2.1 in any period of six
consecutive months. 

3

 

        (iii)  Notwithstanding
the foregoing, if the Company shall furnish, to the Owners requesting a registration pursuant to this Section 2.1, a certificate signed by the
Chief Executive Officer of the Company stating that, in the good faith judgment of the Board of Directors of the Company, a postponement would be in the best interests of the Company and its
shareholders due to a pending transaction, investigation or other event, then the Company shall have the right to defer such filing for a period of not more than 90 days following receipt of
the request (made pursuant to Section 2.1(a) hereof) of the Requisite Threshold; provided, however, that the Company may not utilize this right more than once in any twelve month period. 

        (d)   Selection of Underwriters. If a requested registration pursuant to this Section 2.1 involves an underwritten
offering, the underwriter or underwriters thereof shall be selected by the Company and reasonably acceptable to the Requisite Threshold. 

        (e)   Priority in Requested Registrations. If a requested registration pursuant to this Section 2.1 involves an
underwritten offering, and the managing underwriter(s) shall advise the Company that, in its opinion, the number of securities requested to be included in such registration exceeds the number that can
be sold in such offering within a price range acceptable to the Requisite Threshold, the Company will include in such registration the number of Registrable Securities that the Company is so advised
can be sold in such offering, pro-rata among the Registrable Securities requested to be included in such registration. 

        2.2   Incidental Registration. 

        (a)   Right to Include Registrable Securities. If the Company at any time proposes to register any of its securities under the
Securities Act in an offering of its securities for cash (other than (i) in connection with a registration of any employee benefit, retirement or similar plan, or (ii) with respect to a
Rule 145 transaction), it will each such time give prompt written notice to all owners of Registrable Securities of its intention to do so and of such owners' rights under this
Section 2.2. Upon the written request of any such owner made within 30 days after the receipt of any such notice (which request shall specify the Registrable Securities intended to be
disposed of by such owner and the intended method of disposition thereof), the Company will use its best efforts to effect the registration under the Securities Act of all Registrable Securities which
the Company has been so requested to register by the owners thereof, to the extent required to permit the disposition (in accordance with the intended methods thereof as aforesaid) of the Registrable
Securities so to be registered, provided that if, at any time after giving written notice of its intention to register any securities and prior to the effective date of the registration statement
filed in connection with such registration, the Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give written
notice of such determination to each owner of Registrable Securities and, thereupon, (i) in the case of a determination not to register, shall be relieved of its obligation to register any
Registrable Securities in connection with such registration (but not from its obligation to pay the Expenses in connection therewith), without prejudice, however, to the rights of any owners of
Registrable Securities entitled to do so to request that such registration be effected as a registration under Section 2.1, and (ii) in the case of a determination to delay registering,
shall be permitted to delay registering any Registrable Securities, for the same period as the delay in registering such other securities. No registration effected under this Section 2.2 shall
be deemed to have been effected pursuant to Section 2.1 or shall relieve the Company of its obligation to effect any registration upon request under Section 2.1. The Company will pay all
Expenses in connection with each registration of Registrable Securities requested pursuant to this Section 2.2 except that underwriting discounts and commissions and stock transfer taxes shall
be allocated among all Persons on whose behalf securities of the Company are included in such registration, on the basis of the respective amounts of the securities then being registered on their
behalf. 

4

 

        (b)   Priority in Incidental Registrations. If a requested registration pursuant to this Section 2.2 involves an
underwritten offering, and the managing underwriter(s) shall advise the Company that, in its opinion, the number of securities requested to be included in such registration exceeds the number that can
be sold in such offering within a price range acceptable to the Company, the Company will include in such registration first all securities proposed by the Company to be sold for its own account, and
second, the number of Registrable Securities that the Company is so advised can be sold in such offering, pro-rata among the Registrable Securities requested to be included in such
registration; provided that, until the termination of the obligation described in Section 5(a) hereof, the securities of the purchasers in the Private Offering that are requested to be included
in the first underwritten offering will be included prior to any Registrable Securities; and, provided further, that after termination of the obligation described in Section 5(a) hereof, the
Registrable Securities and the securities of the purchasers in the Private Offering that are requested to be included in such first registration shall be included, after securities proposed by the
Company to be sold for its own account, on an equal basis pro rata among all such securities requested to be included (whether Registrable Securities or securities of purchasers in the Private
Offering). 

        2.3   Termination of Registration Rights. The Owners will have no rights to request registration under this Section 2
after ten years from the date of the closing of the Combination. 

        3.     Registration Procedures. 

        (a)   The
Company will use its Best Efforts to furnish to each Owner requesting registration pursuant to this Agreement a copy of the requisite registration statement, each
amendment and supplement to such registration statement and a reasonable number of copies of the prospectus included in such registration statement (including each preliminary prospectus), as each
such Owner may reasonably request in order to facilitate such Owner's disposition of its securities covered by such registration statement. 

        (b)   The
Company will use its Best Efforts to notify the Owners requesting registration pursuant to this Agreement, at any time when a prospectus relating to the requisite
registration statement is required to be delivered under the Securities Act (within the period that the Company is required to keep such registration statement effective), of the happening of any
event as a result of which the prospectus included in the requisite registration statement (as then in effect) contains an untrue statement of a material fact or omits to state any material fact
required to be stated in the prospectus or that is necessary to make the statements in the prospectus, in light of the circumstances then existing, not misleading. The Company will prepare (and, as
soon as reasonably practicable, file) a supplement or amendment to that prospectus so that, as thereafter delivered to the purchasers of those securities covered by such registration statement, that
prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated in the prospectus or that is necessary to make the statements in the
prospectus, in light of the circumstances then existing, not misleading. However, if the Board of Directors of the Company determines in its good faith judgment that filing any supplement or amendment
to such registration statement to keep such registration statement available for use by such Owners for resales of the securities covered by such registration statement would require the Company to
disclose material information that the Company has a bona fide business purpose for preserving as confidential, then, upon the Company's notice to each Owner (the "Suspension Notice"), the Company's
obligation to supplement or amend such registration statement will be suspended. That suspension will remain in effect until the Company notifies such Owners in writing that the reasons 

5

 

for
suspending those obligations no longer exist and the Company amends or supplements such registration statement as may be required. The Company does not have the right to delay filing any
supplement or amendment for more than 90 consecutive days from giving the Suspension Notice, and in no event may such right be exercised by the Company for an aggregate of more than 180 days
during a period of 12 consecutive months. As soon as an Owner receives a Suspension Notice from the Company under this Section 3(a), that Owner will immediately discontinue disposing of
securities covered by such registration statement until that Owner receives copies of the supplemented or amended prospectus referred to in this Section 3(a). At the Company's request, each
Owner will deliver to the Company all copies of the prospectus covering such securities current at the time of that request. 

        (c)   After
receiving notice of any stop order issued or threatened by the Commission with respect to the requisite registration statement, the Company will use its Best
Efforts to (i) advise the Owners and (ii) take all actions required to prevent the Commission from entering that stop order or and to remove it if it has been entered. 

        (d)   The
Company will use its Best Efforts to cause all securities included in the requisite registration statement to be listed, by the date of the first sale of such
securities pursuant to such registration statement, on the principal securities exchange that the Company's common stock is then listed on. 

        (e)   Each
Owner will sell its Registrable Securities registered in accordance with Section 2 in compliance the prospectus delivery requirements under the Securities
Act. 

        (f)    The
Company may require the Owners to furnish to the Company information regarding the Owners and the distribution of the securities covered by the requisite
registration statement as the Company may from time to time request in writing. Each Owner will (i) notify the Company as promptly as practicable of any inaccuracy or change in information that
Owner previously furnished to the Company or of the occurrence of any event that would cause any prospectus relating to such securities to (A) contain an untrue statement of a material fact
regarding that Owner or its resale of such securities or (B) omit to state any material fact regarding that Owner or its resale of such securities required to be stated in that prospectus or
necessary to make the statements in that prospectus not misleading in light of the circumstances then existing and (ii) promptly furnish to the Company any additional information so that the
prospectus will not contain, with respect to that Owner or its distribution of such securities, an untrue statement of a material fact or omit to state a material fact required to be stated in it or
necessary to make the statements in that prospectus, in light of the circumstances then existing, not misleading. 

        4.     Expenses. The Company will bear all the Expenses in connection with any registration statement under this Agreement, other
than transfer taxes payable on the sale of shares, the fees and expenses of counsel to the Owners and fees, underwriter discounts and commissions of brokers, dealers and underwriters. 

        5.     Market-Standoff Agreement. 

        (a)   Initial Market-Standoff Period; Agreement. For a period continuing until 180 days after the effective date of the
registration statement filed to register the shares of common stock of the Company purchased in the Private Offering, each Owner agrees not to, without the prior written consent of the Company and
Raymond James & Associates, Inc. ("Raymond James"), 

        (i)    offer,
pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale
of, lend or otherwise dispose of or transfer, directly or indirectly, any equity securities of the Company or any securities convertible into or exercisable or exchangeable for equity securities of
the Company; or 

6

 

        (ii)   enter
into any swap or other arrangement that transfers, in whole or in part, directly or indirectly, any of the economic consequences of ownership of any equity
securities of the Company, 

whether
any such transaction above is to be settled by delivery of shares of the Company's common stock or such other securities, in cash or otherwise. Notwithstanding the prior sentence, subject to
applicable securities laws and the restrictions contained in the Company's charter, parties to the agreements may transfer the Company's securities: (A) pursuant to the exercise and issuance of
options; (B) as a bona fide gift or gifts, provided that the donees agree to be bound by the same restrictions; (C) to any trust for the direct or indirect benefit of the stockholder or
the immediate family of the stockholder, provided that the trustee agrees to be bound by the same restrictions; and (D) as a distribution to its stockholders, partners or members, provided that
such stockholders, partners or members agree to be bound by the same restrictions. Each Owner agrees to execute an agreement reflecting the foregoing as may be requested by Raymond James at the time
of the Company's follow-on offering. Raymond James is an intended third party beneficiary of this Section 5 and shall have the right, power and authority to enforce the provisions
of this Section 5 as though it were a party hereto. 

        (b)   Market-Standoff Following First Company Registration Statement. Following the market stand-off period noted
above and in connection with the Company's first underwritten offering (in which Registrable Securities could be included in accordance with Section 2.2), for a period of 60 days
following the effective date of the registration statement for such offering, each Owner agrees to be subject to the restrictions, obligations and third-party beneficiary rights described in
Section 5(a) above as to securities of such Owner not covered by such registration statement, unless he, she or it receives the prior written consent of Raymond James. 

        (c)   Limitations. The obligations described in Section 5(a) shall not apply to a registration relating solely to
employee benefit plans, or to a registration relating solely to a transaction pursuant to Rule 145 under the Securities Act. 

        (d)   Stop-Transfer Instructions. In order to enforce the foregoing covenants, the Company may impose
stop-transfer instructions with respect to the Registrable Securities of each Owner. 

        (e)   Transferees Bound. Each Owner agrees that it will not transfer securities of the Company unless each transferee agrees in
writing to be bound by all of the provisions of this Section 5. 

        6.     Indemnification. In the event any Registrable Securities are included in a registration statement under this Agreement: 

        (a)   To
the extent permitted by law, the Company will indemnify and hold harmless the Owner, the officers and directors of the Owner and each other Person, if any, who
controls the Owner within the meaning of Section 15 of the Securities Act, against any losses, claims, damages, liabilities or expenses, joint or several, to which any such Person may become
subject under the Securities Act or otherwise, insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof) arise out of or are based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in any registration statement under which such Registrable Securities were registered under the Securities Act pursuant hereto, or
any post-effective amendment thereof, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not
misleading, or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, if used prior to the effective date of the registration
statement and not corrected in the final prospectus, or contained in the final prospectus (as amended or supplemented, if the Company shall have filed with the Commission any amendment thereof or
supplement thereto), or the omission or alleged omission therefrom of a material fact required to 

7

 

be
stated therein or necessary to make the statements therein not misleading; and will reimburse any such Person for any legal or other expenses reasonably incurred by such Person in connection with
investigating or defending any such loss, claim, damage, liability or expense; provided, however, that the indemnity agreement contained in this Section 6(a) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or expense if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld); and provided
further that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability or expense arises out of or is based upon any such untrue statement or omission
or alleged untrue statement or omission which has been made in said registration statement, preliminary prospectus, prospectus or amendment or supplement or omitted therefrom in reliance upon and in
conformity with information furnished in writing to the Company by the Owner specifically for use in the preparation thereof. 

        (b)   To
the extent permitted by law, the Owner will indemnify and hold harmless the (i) Company, (ii) each of the directors of the Company, (iii) each of
the Company's officers who has signed the registration statement and (iv) each Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act against any
losses, claims, damages, liabilities or expenses, joint or several, to which the Company or any such Person, may become subject under the Securities Act or otherwise, and will reimburse the Company or
any such Person for any legal or other expenses reasonably incurred by the Company or such Person in connection with investigating or defending any such loss, claim, damage, liability or expense, but
only insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof) arise out of or are based upon any untrue statement or omission or alleged untrue statement or
omission of a material fact referred to in clause (i) or (ii) of Section 6(a), in each case to the extent (and only to the extent) that such untrue statement or omission or
alleged untrue statement or omission was made in reliance upon and in conformity with information furnished in writing by or on behalf of the Owner specifically for use in connection with such
registration. 

        (c)   Promptly
after receipt by an indemnified party under this Section 6 of notice of the commencement of any action (including any governmental action), such
indemnified party will, if a claim in respect thereof is to be made against an indemnifying party under this Section 6, notify the indemnifying party in writing of the commencement thereof and
the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, to assume the defense thereof with counsel mutually satisfactory to the parties;
provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified
party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such
counsel in such proceeding. The failure to so notify an indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall
relieve such indemnifying party of any liability to the indemnified party under this Section 6, but the omission so to notify the indemnifying party will not relieve it of any liability that it
may have to any indemnified party otherwise than under this Section 6. 

8

 

        (d)   If
the indemnification provided for in this Section 6 is unavailable to an indemnified party hereunder in respect of any losses, claims, damages, liabilities or
expenses referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such
losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which
resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party shall be
determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material
fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such action. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the
other limitations set forth in this Section 6, any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. The parties hereto agree
that it would not be just and equitable if contribution pursuant to this Section 6(c) were determined by pro rata allocation or by any other method of allocation which does not take into
account the equitable considerations described above. No Person who commits a fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who has not committed such fraudulent misrepresentation. 

        7.     Reports Under Exchange Act. With a view to making available to the Owner the benefits of Rule 144 and
Rule 145 under the Securities Act and any other rule or regulation of the Commission that may at any time permit the Owner to sell securities of the Company to the public without registration,
the Company agrees to: 

        (a)   file
with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act, and the rules and
regulations adopted by the Commission thereunder; and 

        (b)   furnish
to the Owner such information as may be reasonably requested in availing the Owner of any rule or regulation of the Commission that permits the sale of any
securities without registration. 

        8.     Assignment of Registration Rights. This Agreement shall be binding upon and inure to the benefit of and be enforceable by
the parties hereto and their respective successors and assigns. In addition, and whether or not any express assignment shall have been made, the provisions of this Agreement which are for the benefit
of the parties hereto other than the Company shall also be for the benefit of and enforceable by any subsequent holder of any Registrable Securities, subject to the provisions respecting the minimum
percentages of shares of Registrable Securities required in order to be entitled to certain rights, or take certain actions, contained herein. 

        9.     Condition to the Obligation of the Parties. The effectiveness of this Agreement and the respective obligations of each
party to effect the transactions contemplated by this Agreement shall be subject to the fulfillment of the condition that the Combination shall have been consummated in accordance with the terms of
the Combination Agreement. 

9

 

        10.   Notices. All notices and other communications provided for or permitted hereunder shall be made in writing and shall be
deemed to have been duly given or made if delivered by (i) personal delivery, (b) expedited delivery service or (c) certified or registered mail, postage prepaid. Any such notice
shall be deemed given upon its receipt at the following address: 

        (a)   If
to an Owner, initially at such Owner's address as set forth in the books of the Company, and thereafter at such other address, notice of which is given to the Company
in accordance with this Section 10; and 

        (b)   If
to the Company, initially at 

	

	Stroud
Energy, Inc.

210 West Sixth Street

Suite 500

Fort Worth, Texas 76102

Attention: Chief Executive Officer 

and
thereafter at such other address, notice of which is given in accordance with this Section 10. 

        11.   Counterparts. This Agreement may be executed in two or more counterparts, all of which will be considered one and the
same agreement and will become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign
the same counterpart. 

        12.   Entire Agreement. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings,
both written and oral, among the parties with respect to the subject matter of this Agreement. No provision of this Agreement will be construed as the basis for any liability of the Company in
connection with the Combination Agreement or any of the transactions contemplated thereby (other than the registration of the Registrable Securities pursuant to this Agreement). 

        13.   Governing Law; Jurisdiction. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF TEXAS, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW REQUIRING THE APPLICATION OF THE LAW OF ANOTHER STATE. EACH OF THE COMPANY AND THE OWNERS HEREBY IRREVOCABLY AND UNCONDITIONALLY
CONSENTS TO SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF TEXAS AND OF THE UNITED STATES OF AMERICA LOCATED IN TEXAS, FOR ANY LITIGATION ARISING OUT OF OR RELATING TO THIS
AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY (AND AGREES NOT TO COMMENCE ANY LITIGATION RELATING THERETO EXCEPT IN SUCH COURTS), WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUCH
LITIGATION IN THE TEXAS COURTS AND AGREES NOT TO PLEAD OR CLAIM THAT SUCH LITIGATION BROUGHT THEREIN HAS BEEN BROUGHT IN ANY INCONVENIENT FORUM. 

        14.   Amendments and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof (which may be generally or in a particular instance and either retroactively or prospectively) may not be given, except pursuant to a writing signed
by the Company and the owners of at least a majority of the Registrable Securities. 

[Signature page follows]

10

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

	

 	
 	

 	

 	

 
	
Company:	
 	

STROUD ENERGY, INC.	

 
	

 	
 	

By:	

/s/  PATRICK J. NOYES      
 Patrick J. Noyes, President	

 
	
Owners:	
 	

/s/  BRUCE F. BRADEN      
 Bruce F. Braden	

 
	

 	
 	

/s/  CHRISTOPHER A. WRIGHT      
 Christopher A. Wright	

 
	

 	
 	

/s/  ELIZABETH S. WRIGHT      
 Elizabeth S. Wright	

 
	

 	
 	

/s/  ROBERT S. COLMAN      
 Robert S. Colman, Trustee, Edwin W. Colman Children's Trust FBO Robert S. Colman	

 
	

 	
 	

/s/  DANIEL I. KEMPER      
 Daniel I. Kemper, Trustee, Daniel I. Kemper Living Trust	

 
	

 	
 	

/s/  ROCKWELL A. SCHNABEL      
 Rockwell A. Schnabel	

 
	

 	
 	

/s/  PATRICK J. NOYES      
 Patrick J. Noyes	

 
	 	 	 	 	 

11

 

	

 	
 	
NOYES FAMILY PARTNERSHIP,

a Texas partnership	

 
	

 	
 	

By:	

/s/  PATRICK J. NOYES      
 Patrick J. Noyes, Partner	

 
	

 	
 	

/s/  EDWARD H. SCHWEITZER      
 Edward H. Schweitzer	

 
	

 	
 	

/s/  GREGORY P. SMITH      
 Gregory P. Smith	

 
	

 	
 	

/s/  CHRISTOPHER L. HAMMACK      
 Christopher L. Hammack	

 
	

 	
 	

/s/  GREGORY D. FRAZIER      
 Gregory D. Frazier	

 
	

 	
 	

/s/  STEPHEN M. CLARK      
 Stephen M. Clark	

 
	

 	
 	

/s/  G. CHRISTOPHER VEEDER      
 G. Christopher Veeder	

 
	

 	
 	

/s/  ROBERT S. COLMAN      
 Robert S. Colman, Trustee of the Robert S. Colman Trust	

 
	

 	
 	

ENCAP ENERGY CAPITAL FUND IV, L.P.	

 
	

 	
 	

By:	

EnCap Equity Fund IV GP, L.P., General Partner of EnCap Energy Capital Fund IV, L.P.	

 
	 	 	By:	EnCap Investments L.P., General Partner of EnCap Equity Fund IV GP, L.P.	 
	 	 	By:	EnCap Investments GP, L.L.C., General Partner of EnCap Investments L.P.	 
	

 	
 	

By:	

/s/  DAVID B. MILLER      
 David B. Miller, Senior Managing Director	

 
	

 	
 	

ENCAP IV-B ACQUISITIONS, L.P.	

 
	

 	
 	

By:	

EnCap IV-B Acquisitions GP, LLC, General Partner of EnCap IV-B Acquisitions, L.P.	

 
	 	 	By:	EnCap Energy Capital Fund IV-B, L.P., Sole Member of EnCap IV-B Acquisitions GP, LLC	 
	 	 	By:	EnCap Equity Fund IV GP, L.P., General Partner of EnCap Energy Capital Fund IV-B, L.P.	 
	 	 	By:	EnCap Investments L.P., General Partner of EnCap Equity Fund IV GP, L.P.	 
	 	 	By:	EnCap Investments GP, L.L.C., General Partner of EnCap Investments L.P.	 
	

 	
 	

By:	

/s/  DAVID B. MILLER      
 David B. Miller, Senior Managing Director	

 

12

QuickLinks

Exhibit 4.1

SECOND AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

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